ODA Loan to Thailand under the New Miyazawa Initiative - Support for the international balance of payments and for the agriculture sector

September 28, 1999

1. The Government of Japan has decided to extend to the Government of the Kingdom of Thailand, as part of the New Miyazawa Initiative, an ODA loan of up to a total of 36 billion yen for the improvement of the country's international balance of payments, which is indispensable for smooth promotion of its economic structural reform, and for the assistance in the agriculture sector aimed at increasing agricultural productivity and competitiveness in exports. Notes to this effect were exchanged in Bangkok on September 28 (Tue) between Mr. Hiroshi Ota, Japanese Ambassador to Thailand, and Mr. Pisit Leeahtam, Deputy Minister of Finance of Thailand.
   
   
2. This is part of the assistance to Thailand under the New Miyazawa Initiative, totaling about 1,850 million dollars, mentioned by Prime Minister Keizo Obuchi of Japan to Prime Minister Chuan Leekpai of Thailand on the occasion of the ASEAN summit meeting on December 16 last year.
   
   
3. Name of the ODA loan and maximum amount
   Agriculture Sector Loan ... 36 billion yen
   This loan is a co-financing loan with the Agricultural Sector Program Loan of the Asian Development Bank (ADB) in the form of a sector adjustment loan with a view to improving the international balance of payments and stabilizing the Thai economy as well as assisting the agriculture sector, which is expected to play an important role in creating employment and expanding exports. The loan will be used for import settlement aimed at improving the international balance of payments and promoting economic stability, and for consulting services for the management of the counterpart fund and technical assistance for the Agriculture Sector Program of Thailand. The counterpart fund to be accrued from this loan will be used to meet local currency requirements for implementing the Agriculture Sector Program.
   
   
4. Terms and conditions of the loan
   

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

   
   
5. With the present exchange of Notes, the total of ODA loans extended to Thailand since FY1967 reaches 1,817,202 million yen (on an Exchange-of-Notes basis). In March of this year, the Government of Japan extended another ODA loan of up to a total of 30 billion yen, under the New Miyazawa Initiative, for the Economic Recovery and Social Sector Program Loan. Before the exchange of Notes for this loan, Notes concerning the 24th ODA loan package (115,790 million yen) were also exchanged on the 28th. Including the 24th ODA loan package, the cumulative total of Japan's ODA loans to Thailand for this fiscal year reaches 151,790 million yen.
   
   

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