The Export-Import Bank of Thailand yesterday defended a controversial loan to Burma, saying it had created jobs and income for 16 Thai export companies as well as boosting bonds with a needy neighbour.

The damage-control effort came as members of the Campaign for Popular Democracy (CPD) took a protest to the bank's doorstep to demand the institution come clean - by publicly revealing the details of its Bt4-billion loan to the military government in Burma.

Somkuan Promthong, deputy secretary general of the CPD, said the group gave the bank seven days to come up with a satisfactory answer, or it would step up its campaign. He did not elaborated on future CPD action.

The bank statement yesterday said the loan was for infrastructure development and it had been properly "executed".

The funds 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.

Outgoing Senator Kraisak Choonhavan, a leading critic of the loan, has repeatedly raised doubts over whether the cash-strapped regime could repay the loan.

The US and European Union have also placed economic sanctions on the Burmese government, accusing the junta of gross human rights violations.

Exim said MFTB was a state bank that allocated loans to various Burmese agencies to buy 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 Thai machinery and equipment exporters, 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 interests of Thailand," it said.

The bank statement follows a sudden trip to Burma last week by caretaker Prime Minister 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 companies that did deals with the Burmese agencies were named in the bank's statement.