InfoAnda - Cambodia cancels $41.2 million loan from Thailand

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Cambodia cancels $41.2 million loan from Thailand By SOPHENG CHEANG,Associated Press Writer - Saturday, November 28 Send IM Story Print PHNOM PENH, Cambodia – Cambodia informed Thailand on Friday it was canceling a US$41.2 million loan from Bangkok meant to finance the upgrade of a highway from the Thai border. Cambodian Foreign Ministry spokesman Koy Kuong said his country didn't need the loan and could afford to build the road on its own. The decision comes during a period of bad relations between the two countries over Cambodia's recent welcome to former Thai Prime Minister Thaksin Shinawatra, a fugitive from Thai justice. Thai-Cambodian relations took a turn for the worse when Cambodia recently named Thaksin an adviser on economic affairs. The subsequent visit by Thaksin, and Cambodia's rejection of a formal request from Bangkok to extradite him, drew a negative reaction from Bangkok. Each country has recalled its ambassador and Bangkok has canceled an agreement to negotiate on joint development of offshore territory claimed by both countries. It also said it would review all other assistance agreements and projects with its neighbor. Cambodia is holding a Thai man on a spying charge for allegedly sending a copy of Thaksin's flight schedule to the Thai Embassy during the former leader's visit earlier this month. The secretary to Thailand's foreign minister, Chavanond Intarakomalyasut, downplayed the importance of Phnom Penh's cancellation of the loan to upgrade the 73-mile (117-kilometer) road stretching from Cambodia's northwestern border with Thailand to the province of Siem Reap. He called it a normal procedure, as Friday marked three months after the agreement was signed, and Cambodia was supposed to give notice on whether it agreed to its terms. The road would in large part serve trade between the two countries, which is heavily in Thailand's favor. He said Thailand had reviewed the agreement, as part of its earlier threat to cancel all assistance agreements, but took no action on it. A Thai court last year sentenced Thaksin in absentia to two years in prison for violating a conflict of interest law, but he fled into exile before the verdict. He was prime minister from 2001 until ousted by a military coup in 2006. Recommend Send IM Story Print Related Articles Filipino who lost wife in massacre files candidacy AP - 2 hours 25 minutes ago Sri Lanka's presidential poll set for Jan. 26 AP - 2 hours 59 minutes ago Sri Lanka to hold presidential poll in January AFP - Saturday, November 28 Australia carbon cuts hit by opposition revolt AFP - Saturday, November 28 Pakistani forces kill 15 militants in Khyber region Reuters - Saturday, November 28 News Search Top Stories Dubai panic pushes world stocks down for second day Polanski to spend one more weekend in jail Thyssenkrupp to axe 20,000 jobs Sarkozy hails US, Chinese climate proposals Spain's Repsol to invest $1.5 million in Bolivian gas More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Dubai debt fears hit world stock markets Couple crashed White House state dinner Dubai debt move 'carefully planned': top official Dubai panic pushes world stocks down for second day Berlusconi estranged wife eyes $65 mln a year More Most Viewed » Alcohol helps cut heart disease risk for men: study Mankind using Earth's resources at alarming rate More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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