Strained relations between Cambodia and Thailand have yet to show signs of easing as Cambodian Prime Minister Hun Sen announced on Nov. 30 that Phnom Penh would cancel all bilateral loan agreements.

Local governments in Cambodia ’s provinces would annul loans provided by the Thai government, including scholarships granted to Cambodian students, PM Hun Sen said at a ceremony to inaugurate a pagoda in Kompong Cham province.

The announcement came after the Cambodian Foreign Ministry announced on Nov. 27 of its decision to cancel a 40 million USD loan pledged by the Thai government, which was designated to upgrade national road No. 68 from Siem Reap city to the Poipet border gate.

However, Thai government spokesman Panitan Wattanayakorn said Thailand has yet to receive any official notices about the decision from Cambodia.

In another move, the Phnom Penh court is planning to open the first trial of Thai engineer Siwarak Chutipong, who was arrested early last month by Cambodian authorities for alleged having stolen information from the Cambodia Air Traffic Services (CATS).

Relations between the two neighbouring countries took a turn for the worse when Cambodia recently named former Thai PM Thaksin Shinawatra an adviser on economic affairs./.