Thread: China to Loan Burma 30 Billion Yuan

China to Loan Burma 30 Billion Yuan
MOE SET and MIN LWIN
Tuesday, September 21, 2010

China has agreed to give Burma a 30 billion yuan (US $4.2 billion) interest-free loan. The agreement was reached during junta chief Snr-Gen Than Shwe's five-day state visit to China on Sept. 7-11, according to Burma's Ministry of National Planning and Economic Development (MNPED).

“The interest-free loan agreement between China and Burma was reached after Than Shwe met China's president Hu Jintao in Beijing,” said an official from the MNPED.

Than Shwe led a 34-member delegation that included ex-generals and businessmen such as Tay Za, who is reportedly close to Than Shwe’s family, and Zaw Zaw, who owns Max Myanmar Group of Companies.

“The 30-year loan is intended to help fund mass hydropower projects, road construction, railway development and information technology development,” said the MNPED official, who provided no further details regarding the loan.

A Rangoon-based economist said that accepting the loan from China may leave Burma's military government subject to Chinese influence.

“It is obvious that if we receive the 30 billion yuan, we have to accept Chinese companies in Burma and the migration of Chinese workers into Burma. The loan received from China helps Chinese people and their companies. Ordinary Burmese people will not get economic opportunities from this agreement,” the economist said.

“The government also has not published how they will manage the loan, or how much Than Shwe can spend in the military development sector,” he added.

Meanwhile, a military source in Naypyidaw said Than Shwe is not willing to submit military expenditures to the new parliament that will convene after the Nov. 7 election.

“Than Shwe is not willing to submit the military budget bill to the parliament, so he wants to arrange military budgets before parliament is convened. Burma has recently bought military equipment including aircraft and ships,” the military source said.

Burma also received a US $1.2 billion loan from China in 2009 for economic development and information technology development.

irrawaddy.org

No mention how last year's loan is faring. Anyway they can kiss this 'loan' goodbye as well but with no bitterness, since they're effectively buying influence if not secured against a resource filled chunk of the country.

Loans, aid, economic assistance...got some current threads on these topics, but I doubt this would fit in those because it's to do with China, not the US.