The Assets Examination Committee is proceeding with an investigation of the loan, which was made during the term of the Thaksin government. However, Exim Bank chairman Narongchai Akrasanee said Burma has disbursed Bt3 billion so far and the remaining Bt1 billion of the loan will be fully utilised when the contract ends next year. Exim Bank provided the loans under government policy to encourage Thai firms to invest in neighbouring countries, he said.

The AEC claims that Thaksin forced the bank to lend to the Burmese junta to benefit his family's telecom business. Shin Satellite is one of the Thai companies to benefit from the loans.

However, Narongchai said Burma borrowed to pay for products from Thai companies because it was short of money, and Shin Sat is just one of 16 companies to benefit.

On another subject, Narongchai complained about the appreciation of the Thai baht against US dollar.

The economic guru said he was not happy with high growth figures for exports in the first four months of this year, pointing out that multinational firms dominated Thailand's exports. He said small and medium exporters have been hard hit by the rising value of the baht because it squeezes their margins.

He also suggested that the Bank of Thailand revoke its 30-per cent withholding measure, introduced in December to control capital inflows and curb the growing strength of the baht.

"I still insist that the central bank should remove the capital-control measures," he said.

Narongchai said he expects the volume of exports to grow by 8 per cent this year, and political uncertainty will continue to affect both private investment and the overall economy.

Wichit Chaitrong

The Nation