Thaksin abused his power through a Burmese loan to benefit his family business?
In 2003, Export and Import Bank of Thailand, or EXIM Bank, has approved 3 billion baht credit line for Myanmar to invest in telecommunication with 5.5% interest rate a year.
Thaksin Shinawatra, who was the Prime Minister of Thailand at the time, requested EXIM Bank to extend its credit line for Myanmar from 3 billion baht to 4 billion baht, and reduced the interest rates rom 5.5% to 3%.
Yes, it is true that Thaksin Shinawatra abused his powers for personal gains in the Myanmar loan scandal because the adjustments were made to facilitate and finance the purchase of services from ThaiCom, a business that belongs to the Shinawatra family.
The former Prime Minister ordered an increase in the credit line from 3 billion baht to 4 billion baht, decreased the interest rates from 5.5 to 3% a year, and additional funds for the Burmese investors to invest in his own telecommunications firm.
The decrease in interest rate caused a 670 million baht loss to EXIM bank as the reduced interest rates could not cover the operating costs, while giving Myanmar the upper hand in the deal. This power abuse has exploited Thai tax payers and aided Thaksin Shinawatra’s family business. The National Anti-Corruption Commission has taken action for his abuse of power.