Thailand's Export and Import Bank says it has approved a multi-million dollar loan to Burma to overhaul Rangoon's telecom sector.
A bank spokesman says officials signed the 12-year line-of-credit agreement with a Burmese bank chief. Some of the money will also go to fund road construction.
The bank's statement comes after Thai Prime Minister Thaksin Shinawatra denied that the loan package had been approved. Mr. Thaksin has not commented on the bank's claims.
Thai media first reported on the loan proposal Monday. Critics say Mr. Thaksin's family's telecommunications company will benefit from the package by supplying Burma's future telecom projects.