Thailand did not cancel loan for Cambodia

BANGKOK, 28 November 2009 (NNT) – Prime Minister Abhisit Vejjajiva said Cambodia’s cancellation of the 1.4 billion THB loan request made with Thailand was a misunderstanding.

The PM said on Saturday that Thailand had not canceled its financial assistance for Cambodia, and his administration would discuss the matter later.

The Thai-Cambodian ongoing diplomatic row has worsened the relations between the two countries following the appointment of former Thai PM Thaksin Shinawatra to be Phnom Penh’s economic adviser. Cambodian PM Hun Sen also refused to extradite Mr Thaksin back to Thailand.

A Cambodian official earlier announced that the Cambodian government would not accept the 1.4-billion-baht loan from Thailand. The loan has been planned to be spent on the construction of highways on the Thai-Cambodian border.