Exim defends Bt4-bn loan to Burma
The Export-Import Bank of Thailand Tuesday defended its controversial loan to Burma, saying it had created jobs and income for 16 Thai export firms as well as boosting bonds with a needy neighbour.
The Bt4 billion loan, for infrastructure development in Burma, had been properly "executed", the bank said in a statement Tuesday. The funds had helped create more jobs and income for machinery exporters, construction contractors and petrochemical producers in Thailand, it said. Bank president Apichai Boon-therawara said the loan, which has a repayment term of 12 years, was officially granted in June 2004 to Myanmar (Burma) Foreign Trade Bank (MFTB) for road construction and infrastructure development. MFTB is a state bank designated to allocate the loan funds to various Burmese agencies for use in the procurement of capital goods and services from Thailand. "Up to the present, Exim has provided financial support to Thai exporters and investors under the procurement contracts granted by the Burmese government worth Bt3.8 billion. A total draw-down amount of Bt2.7 billion has been made with all four instalments of interest payment satisfactorily fulfilled," Apichai said. Under the approved credit line, Bt1.75 billion had been extended to nine exporters of machinery and equipment in Thailand, Bt980 million to three overseas construction contractors, Bt500 million to two petrochemical enterprises and Bt600 million to two telecommunications companies. The bank said its lending objective was to support economic development in neighbouring countries while promoting Thai exports and overseas investment in a bid to ultimately help increase Thailand's national income. Financial assistance to Burma had "far-reaching implications for economic advancement of the country and Asean region", Exim said, as well as promoting Thai and Burmese cooperation. It would also contribute to resolving border security issues as well as enhancing the living conditions for people in both countries. "The Bank will make its best effort to ensure the Burmese authority's effective use of the credit line while safeguarding the interest of Thailand," it said. The bank statement follows a sudden trip to Burma last week by caretaker Premier Thaksin Shinawatra. Critics said they suspected the PM had personal business motives for making the trip. The Bt4-billion Exim loan was criticised by opponents of the PM, who claimed companies connected to Thaksin's family would benefit. None of the firms that did deals with the Burmese agencies was named in the bank's statement. The Nation
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