On September 14, 2026, Mr. Kirati Veruwan, Vice President of the Neighbouring Countries Economic Development Cooperation Agency (Public Organization) (NEDA), issued a clarification following reports concerning the 2027 budget and projects in the Kingdom of Cambodia. Reports citing a figure of 31 million baht may have created the impression that the amount represented a direct budget allocation to assist the Cambodian government. NEDA clarified that in fiscal year 2027 it received a total budget allocation of 30.72 million baht to compensate for interest-rate differentials arising from loans to neighboring countries.
The amount comprises 12.52 million baht in interest-rate differential compensation for two projects in the Lao People's Democratic Republic and 18.20 million baht for two projects in the Kingdom of Cambodia. Both Cambodian projects were completed long ago. The first is the Upgrading of National Road No. 67 (NR67) (Siem Reap - Anlong Veng to Choam/Sa Ngam) Project. NEDA requested an allocation of 12 million baht to compensate for the interest-rate differential under a Cabinet resolution adopted in 2006, which authorized financial assistance to Cambodia through a 1.3-billion-baht loan carrying an annual interest rate of 1.50 percent over 30 years. Under the arrangement, the Export-Import Bank of Thailand (EXIM Bank) provided the loan directly to Cambodia. The project currently has an outstanding principal balance of 648.34 million baht.
The second is the Development of Stung Bot Border Crossing Facilities and the Access Road to National Road No. 5 Project. For fiscal year 2027, NEDA requested 6.20 million baht in interest-rate differential compensation under a 2015 Cabinet resolution approving 928.11 million baht in financial assistance to Cambodia at an annual interest rate of 1.50 percent over 25 years. Under the arrangement, NEDA receives annual allocations for interest-rate differential compensation and secured financing through borrowing from the EXIM Bank. The project currently has an outstanding principal balance of 720.90 million baht. NEDA further clarified that the 18.20-million-baht budget allocation for interest-rate differential compensation will be paid to the EXIM Bank to meet financial obligations arising from the financing arrangements for the projects. Accordingly, if NEDA did not receive the allocation, the affected party would be the EXIM Bank, not the Cambodian government.
NEDA said Cambodia has consistently made principal and interest repayments in full and on schedule and has no history of default on these projects. NEDA added that since the emergence of the conflict along the Thai-Cambodian border, it has not approved any new loans, disbursed funds or undertaken additional cooperation projects with Cambodia. The agency emphasized that statements suggesting that “Thailand is using 18.2 million baht or 31 million baht in budget funds to provide direct assistance to the Cambodian government” could cause misunderstanding. The allocation relates to pre-existing financial obligations. NEDA had already explained during the budget consideration process that the funds were intended to compensate financial institutions involved in lending for interest-rate differentials and were not a direct transfer of budget funds to the Cambodian government.
NEDA said its financial cooperation with neighboring countries is intended to support infrastructure development, transportation connectivity, trade, investment and regional logistics, while taking national development strategies into consideration and promoting international economic cooperation. The agency said it remains open to public views and concerns and is prepared to disclose information on projects, financial conditions and operations where disclosure is permitted so that the public has access to accurate, complete and verifiable information. NEDA reaffirmed that every project is implemented in accordance with applicable laws, regulations, criteria and government review processes.
