Bt20 bn injection sought for BAAC

[webfact]

Bt20 bn injection sought for BAAC

By THE NATION

 

 

The Finance Ministry will propose to the Cabinet on January 21 a recapitalisation of the Bank for Agriculture and Agricultural Cooperatives (BAAC) by Bt20 billion over five years.

 

Deputy Prime Minister Somkid Jatusripitak has said the higher capital will enable BAAC to become a key mechanism of the government in bringing sustainable development to rural areas.

 

The financial injection will come form the Specialised Financial Institutions Development Fund.

 

Once the recapitalisation is complete, it will be able to lend as much as Bt240 billion.

 

Currently the bank has a registered capital of Bt56 billion. In the 2020 fiscal year, the finance ministry will inject Bt6 billion into the bank.

 

Its total capital will surge to Bt80 billion if it succeeds in raising capital by another Bt20 billion as planned.

 

Currently the bank has Bt1.5 trillion in outstanding loans.

 

Source: https://www.nationthailand.com/business/30380724

 

-- © Copyright The Nation Thailand 2020-01-20

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[Srikcir]

6 hours ago, webfact said:

Currently the bank has Bt1.5 trillion in outstanding loans.

BAAC is 99.79% owned by the Ministry of Finance, aka the Thai taxpayer who ultimately pays the price for more soft loans.

 

[Sydebolle]

Pop, goes the weasel ............. 

Lets see how long it takes until the BAAC goes down the halligally. Together with the overvalued Baht, ailing export and dying tourism - a toxic cocktail for a collapse. And yes, here again the bigwigs in the government mix-up "government gift" with "paid through the taxpayers noses".