Exchange of Notes on Yen Loans and Grants to Thailand – Thailand

On May 2nd, HE Mr. NASHIDA Kazuya, Ambassador of Japan to the Kingdom of Thailand, as well as HE Mr. Arkhom Termpittayapaisith, Minister of Finance of Thailand and Ms. Ureerat Chareontoh, Director General of Thailand International Cooperation Agency (TICA ) exchanged the Ministry of Foreign Affairs of Thailand in the presence of Mr. KISHIDA Fumio , Prime Minister of Japan, made notes on a yen loan project totaling up to 50 billion yen and a grant aid project totaling up to 500 million yen in Bangkok , and HE Mr. Prayut Chan-o-cha, Prime Minister and Minister of Defense of Thailand. Overview of the projects are as follows.

1. Yen loan

(1) COVID-19 Crisis Response Emergency Support Loan (50 billion yen)

(2) This is to provide financial support to the Government of Thailand where COVID-19 is spreading. This cooperation will strengthen the health system in view of post-COVID, promote support for the poor and vulnerable and small and medium-sized enterprises affected by COVID-19, and promote Thailand’s economic and social stabilization and development efforts.

(3) The terms of the loan are as follows:

(ⅰ) Interest rate: 0.01% per year
(ⅱ) Repayment period: 15 years (including a 4-year grace period)
(ⅲ) Conditions of procurement: Generally unbound

2. Grant aid

(1) COVID-19 Crisis Response Emergency Support Program (500 million yen)

(2) This program aims to equip Suvarnabhumi International Airport, four border quarantine stations and hospitals near the border in Thailand with equipment for quarantine, border control, diagnosis and treatment of infectious diseases. Through this cooperation, it is expected that the risk of contracting coronavirus will be contained while economic activities will resume, which will boost Thailand’s economic and social stabilization and development efforts.

[Reference] Thailand covers an area of ​​514,000 square kilometers (about 1.4 times the area of ​​Japan) and has a population of 66.17 million (Ministry of Interior, Thailand, 2021) and a gross national income (GNI) per capita of US$17,719 (World banks, 2020).

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