ODA Loan to Thailand - Assistance Under the New Miyazawa Initiative for Measures for the Socially Vulnerable and Public Works to Create Employment

March 12, 1999

1. The Government of Japan has decided to extend to the Government of the Kingdom of Thailand an ODA loan of up to a total of 30,000 million yen as part of the New Miyazawa Initiative for the improvement of the country's international balance of payments, which is indispensable for smooth advancement of its economic structural reform. This loan also aims at supporting measures for the socially vulnerable and for effective public works to create employment. Official notes to this effect were exchanged in Bangkok on March 12 (Fri.) between Mr. Hiroshi Ota, Ambassador of Japan to Thailand, and Mr. Tarrin Nimmanhaeminda, Finance Minister of Thailand.
   
   
2. The assistance is part of a total of about 1,850 million dollars of the New Miyazawa Initiative indicated by Japanese Prime Minister Keizo Obuchi to Thai Prime Minister Chuan Leekpai at the ASEAN summit meeting on December 16, 1998.
   
   
3. Particulars of this ODA loan
   
   (1) Name of the loan and the amount
   - Economic Recovery and Social Sector Program Loan (30,000 million yen)
   
   (2) Description
   The loan will be extended in the form of the Sector Program Loan with quick disbursement to improve the international balance of payments and stabilize the Thai economy. It is the first ODA loan to the Government of Thailand to support the improvement of international balance of payments. The amount of 30,000 million yen will be used for supporting the import settlement and stabilizing the economy, and for the consultation costs to manage the counterpart fund.
   The counterpart fund to be accrued by this loan will be used in concert with the Additional Public Expenditure Program of about 50 billion Bahts (about 1.4 billion dollars, 1 % of GDP) being planned by the Government of Thailand as an economic stimulus to revitalize the real economy, for the measures for the socially vulnerable including job training for young people, and public works including the construction of water tanks and small-scale irrigation facilities in local areas, which are considered effective in creating employment.
   
   (3) Terms and conditions of the loan

   (a)	Interest rate:	1.0 % per annum (special interest for assisting structural adjustment)
   (b)	Repayment period:	25 years (including a 7-year grace period)
   (c)	Procurement method:	general untied

   
   
4. The sum of 117,562 million yen as the 23rd ODA loan (ordinary portion: 67,737 million yen in September 1998, advance portion: 49,825 million yen in July 1998) has already been extended to Thailand. A total of 147,562 million yen loan will be extended to Thailand in this fiscal year including the present loan, as part of the New Miyazawa Initiative.
   The cumulative total of Japan's yen loans to Thailand since FY1967 reaches a total of 1,665,412 million yen on an Exchange-of-Notes basis.
   
   

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