Bangkok withholds loan handover to Rangoon

The Bank for Exports and Imports of Thailand, better known as Exim Bank, was ordered to suspend its transfer of loans to Burma following the sentenc of ex-prime minister Khin Nyunt to a 44-year imprisonment on 22 July, reports the Thai language Post Today yesterday.

Sathaporn Chinajitr, its managing director, said the bank wishes to hear clarifications from the Thaksin government whether or not the deal should go on.

So far the bank has disbursed 2.3 billion baht ($57.5 million) out of the 4 billion baht ($100 million) loan project signed with Burma before Khin Nyunt's ouster in October 2004. It includes 360 million baht ($9 million) for Shin Satellite, the company owned by Dr Thaksin Shinawatra's family. The firm's projected investment in Burma for the upgrading of communications system in Burma is 600 million baht ($15 million).

Apart from Shin Sat, there are 13 other Thai companies that have contracts with Burma: Siam Tone, Sojitsu, Tipco Asphalt, Seaca, Tomen Enterprise, Kankul Engineering, Marubenii, Sinphuchai, Krung Thai Tractor, Ital-Thai Industrial, Thai Petro-chemical Industry, Imco Steel Products and Hatari Wireless.