At Mae Sot-Myawaddy checkpoint (Photo: bangkokpost)
Bangkok (VNA) - The Thai Cabinet has approved a preferential loan worth 777 million THB (over 25.76 million USD) under a 30-year contract for Myanmar for infrastructure development in Myawaddy city.
Government deputy spokeswoman Ratchada Thanadirek said the Cabinet meeting on December 24 endorsed a proposal for the Neighbouring Countries Economic Development Cooperation Agency (NEDA) to provide financial assistance for Myanmar to fund the third phase of the Greater Mekong Sub-region development project for Myawaddy.
The loan has an annual interest rate of 1.5 percent and a grace period of 10 years, she said.
Loan conditions require goods and services to be from Thailand for at least half of the value of the contract. Constructors and project advisers must hold Thai nationality, and Thai laws will be enforced in the loan contract.
Myawaddy plays an important role in the economic development of Myanmar and Thailand because it is a major border trading area between the two countries through Mae Sot district of Tak. Cross border volume is about 70 billion baht (2.3 billion USD) a year and rising./.
