Lottery saving scheme to launch mid-August

[webfact]

Lottery saving scheme to launch mid-August

By The Nation

 

 

The Bank for Agriculture and Agricultural Cooperatives (BAAC) will launch the two-year lottery saving scheme at Bt20 per unit with an interest rate of 0.5 per cent a year in the middle of August, the bank’s executive vice president Somkiat Kimawaha said on Monday.

 

He added that the bank expects to raise up to Bt10 billion through this lottery saving scheme and that new loans are forecast to reach Bt95 billion by the end of this year.

 

“We are introducing the lottery saving in time to serve the strong demand for agriculture loans this time of year, as farmers start preparing for a new planting season,” he said.

 

The lottery saving offers prizes worth Bt1 million a year and lottery saving holders also have the chance to win a prize every month. The draw will be made on the 16th of every month over a two-year period. The bonds can be purchased at BAAC's branches nationwide, as well as through mobile application, 7-Eleveen and prepaid kiosks.

 

Source: https://www.nationthailand.com/business/30373834

 

-- © Copyright The Nation Thailand 2019-07-29

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[PatOngo]

24 minutes ago, webfact said:

He added that the bank expects to raise up to Bt10 billion through this lottery saving scheme and that new loans are forecast to reach Bt95 billion by the end of this year.

Savings scheme? Sounds like increased debt encouragement!

[worgeordie]

So they are going to take in Bt10 Billion,and loan out Bt 95 Billion,

in the next 4 months !,well i suppose it gives the lottery addicts

a chance to win something every month,without wasting it buying

lottery tickets.

 regards Worgeordie

[Misterwhisper]

I am not sure I understand this scheme correctly. Allow me to try...

 

Okay, so BAAC is going to sell bonds at 20 baht a piece that yield a whopping 0.5% interest per annum, i.e. 0.1 baht (10 satang) per bond.

 

If I buy, say, 500 bonds at a total of 10,000 baht (500x20), they'll earn me a total of 50 baht interest per year.

 

After two years, I can sell these bonds back to BAAC at 10,000 baht face value plus 100 baht accrued interest.

 

But during those two years I also have a chance to win some prizes on a monthly basis, as well as annual prizes "worth up to 1 million baht per year". 

 

BAAC anticipates to sell bonds worth 10 BILLION baht, i.e. a total of 500 MILLION bonds at 20 baht each.

 

These 10 billion baht raised will be used to help finance an anticipated 95 BILLION baht worth of NEW loans expected to be taken out until the end of this year.

 

As the past has proven again and again, roughly 40% of these 95 billion baht in new loans eventually will typically turn out to be non-performing.

 

You know what? Instead of having 10,000 baht tied up for two years so I can help some beatnik farmers taking out loans that they have no intention of ever repaying, I'll rather keep those 10,000 baht in my purse... and spend 100 baht right away.   

[GreasyFingers]

7 hours ago, webfact said:

The Bank for Agriculture and Agricultural Cooperatives (BAAC) will launch the two-year lottery saving scheme at Bt20 per unit with an interest rate of 0.5 per cent a year

And they lend the money out at 9% unsecured. Great work if you can get it.

[Almer]

7 hours ago, worgeordie said:

So they are going to take in Bt10 Billion,and loan out Bt 95 Billion,

in the next 4 months !,well i suppose it gives the lottery addicts

a chance to win something every month,without wasting it buying

lottery tickets.

 regards Worgeordie

I have never been a fan of lottery, seems to me you take a little from many and give to one

[metisdead]

A post in which the quoted content had been altered has been removed. 

[Moonlover]

8 hours ago, PatOngo said:

8 hours ago, webfact said:

He added that the bank expects to raise up to Bt10 billion through this lottery saving scheme and that new loans are forecast to reach Bt95 billion by the end of this year.

 

8 hours ago, PatOngo said:

Savings scheme? Sounds like increased debt encouragement!

From my observation, farmers cannot function without loans as they have little capital of their own to rely on. There is always a lean time between sowing and reaping in any farming activity and the banks, particularly the B of A supply the capital they need.

 

Yes it's tough and yes the banks profit from it, but we all have to eat.

[Pib]

Better banking through lottery gambling...Amazing Thailand.

[mok199]

1 for you 2 for me, 1 for you 3 for me, 1 for you.......