Thai Government, Japan Agency Ink Y23.95 Billion Loan Agreement

Thailand‘s Ministry of Finance said Tuesday (28.09.2010) it has signed a Y23.95 billion loan agreement with Japan International Cooperation Agency to finance the construction of a bridge and an urban electric rail project.

The Ministry of Finance will borrow Y7.31 billion to finance a project under the Department of Rural Roads to build a bridge over the Chaopraya river in Nonthaburi, a province next to Bangkok. The 20-year term loan, with a six-year grace period, will carry an annual interest rate of 0.95%.

The Mass Rapid Transit Authority of Thailand will borrow Y16.64 billion to finance the second phase of construction of an electric rail project, known locally as the Purple line. The 25-year term loan, to be guaranteed by the Ministry of Finance, will be at an annual interest rate of 1.4%. It has a seven- year grace period.

Since 1968, Thailand has taken from the Japanese government a total Y2.164 trillion worth of committed loans, the statement said.

The loan plan has been approved by the Thai cabinet in April.