Thai Govt Cancels Its Plan To Issue Credit Cards To Farmers

[webfact]

ELECTION PLEDGE

Pheu Thai reneges on 'credit cards for farmers'

ACHARA PONGVUTITHAM

THE NATION

The government has cancelled its plan to issue credit cards to farmers, claiming the Pheu Thai Party's populist promise is too complicated for famers' debt payments.

The first lot of credit cards had been promised to 5,000 farmers in five provinces, to coincide with the start of the government's rice mortgage scheme at the end of next week.

Instead, plans are well advanced for lines of credit to be granted to farmers by the Bank of Agriculture and Agricultural Cooperatives, accessible through individually issued atuomated teller machine cards. But this credit will not be available until March or April next year.

Finance Minister Thirachai Phuvanatnaranubala said yesterday the credit-card platform was too complicated for the payment of farmers' debts. Proceeding with the credit cards would have involved many requirements, such as smart cards with microchips for farmers' personal data.

He said the government was now considering a means of debt payment that was familiar to farmers, under the Bank for Agriculture and Agricultural Cooperatives (BAAC). The bank's normal practice is to allow farmers a line of credit through an ATM card.

"Farmers will have their own credit card [in the new form] to ensure their credit lines by March or April next year at least, to encourage their main-crop plantation," Thirachai said.

Proceeding with credit cards would have cost the government about Bt1 billion. This money should be spent on other assistance measures that will create bigger benefits, he said.

The demise of the credit-card plan has meant that BAAC has cancelled the bidding process by companies wishing to manage the farmers' credit cards.

There were 13 companies interested in the bidding. Only five firms have submitted bids to date and only three of them are qualified.

Thirachai said his ministry had discussed the changes with Prime Minister Yingluck Shinawatra and Deputy Prime Minister and Com-merce Minister Kittiratt Na-Ranong, explaining the reasons for the decision and assuring the availability of credit for farmers in the long term.

BAAC executive vice president Apirom Sukprasert said the bank was considering a "closed loop" ATM card, which it used for specific purposes and which limited the location for users. This strategy avoids the need to comply with international-card standards. In addition, farm shops have asked to be registered.

On a related issue, the BAAC yesterday considered measures to prevent corruption in the soon-to-be-launched rice-pledging scheme. Both farmers and their rice will be seriously inspected, including an examination of rice quality in terms of contamination and humidity, and to determine that it is purely Thai rice and not mixed with rice from neighbouring countries.

These inspections will take place at warehouses of both the Public Warehouse Organisation and the Market Organisation for Farmers.

The bank will work as the government's arm, as a credit provider to farmers. It is estimated that Bt410 billion will be required to support the project. Of this, Bt90 billion will come from the BAAC and the remaining Bt320 billion will have to be borrowed from whichever commercial banks offer the most attractive interest rates.

The Finance Ministry will have to allocate Bt16 billion to subsidise interest payments under the whole rice-pledging scheme.

Thirachai said yesterday that the government might not need to spend as much as Bt410 billion, as it planned to continue exporting the rice. This strategy will allow the government some working capital, he said.

The government is also planning to extend a debt moratorium to farmers who own less than Bt500,000, for three years. This will begin tomorrow and end on September 30, 2014. About 639,589 farmers will qualify for the programme, with total principal of Bt77.75 billion. Good debtors will enjoy a special offer from the |bank of life-insurance coverage of Bt100,000. However, they will be forbidden to borrow new funds during the period of the moratorium.

-- The Nation 2011-09-30

[Who, me ?]

Another one (electoral promise) bites the dust..

If it is not aimed at bringing Thaksin back,scrap it. I am eager to see comments from red lovers.

[Moruya]

The last election was a farce.

2 million people unable to vote and all the policies PTP elected on have evaporated.

The only thing the government is committed to focusing on is Thaksin.

Where this all leads us anyone's guess.

[endure]

Shouldn't the headline read 'Thai government cancels all its pre-election promises now that it's in power and those who believed the nonsense that it promised can sit and swivel' ?

[Ricardo]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

[siampolee]

Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Many of the P.T.P. (Personal Thaksin Property) members and their cronies have a "high interest" in seeing the continuance of the Mafia style high interest loans.

[MILT]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

Agreed. At least they are making sure that there bogus policies will not actually work before scrapping them knowing that they could not be implemented from the start.

[whybother]

Next one off the list will be Taxi credit cards.

[spud1]

More U-turns than a road trip from Bangkok to Chiang Mai.

[MunterHunter]

In the next general election, the Dems should promise "a solid gold Mercedes and a 7 bedroom house for everyone!"

After all, there is no obligation to fulfil your election promises, they can just wait 2 months and then say "oh, we looked at that, but it wasn't viable after all, sorry!" - then if anyone tried to take them to court over it, they can just claim double standards as the PTP government did exactly the same thing.

No accountability, promise the moon-on-a-stick then deliver nothing. Yay for the red government, they care only about bringing back a criminal and 200,000b lunches

[otherstuff1957]

Actually, if the original promise was properly implemented, it could have been a pretty good program. The cards were supposed to be good only at stores that sold agricultural equipment and supplies and therefore would only be used for their intended purpose. An open credit line, on the other hand, means that the cash could be used for anything, not just for productive investment.

[AleG]

Next one off the list will be Taxi credit cards.

Taxi credit cards?

Jedi mind trick

There are no taxi credit cards.

I've been waiting for the 20 Baht flat rate for the MRT myself.

[nycpal44]

I am not surprised at all, I knew it would just be an empty promise and impossible to implement.

Wonder if the red-shirt supporters ever going to understand who benefitted from their votes. It is ALL about the Shinawatra Family and nothing else.

[Thai at Heart]

I think the issue at the end of the day would have been does the government guarantee the loans 100%?

If was a bank president, would I believe it if Yingluck said the government promises to be on the hook if payments aren't made?

[mijan24]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

A very good post and you have hit the situation right on the noggin. You have my vote for the most responsible response of the month.

Edited September 30, 2011 by metisdead
Bold font removed.

[khaowong1]

The last election was a farce.

2 million people unable to vote and all the policies PTP elected on have evaporated.

The only thing the government is committed to focusing on is Thaksin.

Where this all leads us anyone's guess.

You don't have to guess, you already said it, this all leads to bringing back Thacksie..

[ginjag]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

A very good post and you have hit the situation right on the noggin. You have my vote for the most responsible response of the month.

This was a good response, but it just underlined how dishonest the election carrot was. and how stupid that a party could have got their sums wrong, all Thais use calculators to add up even 2+2. but this shows there are no calculators in the cabinet........................yes well done for the would have been bankrupt nation-the idiots.

IT also shows how good a P.M. we have to have pledged it all in the first place, (but she looks nice)

[Dag]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

A very good post and you have hit the situation right on the noggin. You have my vote for the most responsible response of the month.

Well done ??.....instead of thrashing them for a stupid promise and program to begin with.....you say good on you for finally thinking right after the fact......like closing the gate after the buffalo has balted......thanks for shutting the gate.

[sfbandung]

Leaving the politics aside it was a bloody terrible idea and it's good news that it's been abandoned.

[ginjag]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

A very good post and you have hit the situation right on the noggin. You have my vote for the most responsible response of the month.

Well done ??.....instead of thrashing them for a stupid promise and program to begin with.....you say good on you for finally thinking right after the fact......like closing the gate after the buffalo has balted......thanks for shutting the gate.

The pre pledges were never going to be implemented, what is happening is what was planned, and now they are being applauded. THEY HAVE NOT DONE A U TURN. this is a sick lot and now your clapping them.

[uptheos]

No country's government ever keeps its election promises.

[bangkokrick]

Shouldn't the headline read 'Thai government cancels all its pre-election promises now that it's in power and those who believed the nonsense that it promised can sit and swivel' ?

Good line! Sums things up nicely.

[Colin Yai]

In the next general election, the Dems should promise "a solid gold Mercedes and a 7 bedroom house for everyone!"

After all, there is no obligation to fulfil your election promises, they can just wait 2 months and then say "oh, we looked at that, but it wasn't viable after all, sorry!" - then if anyone tried to take them to court over it, they can just claim double standards as the PTP government did exactly the same thing.

No accountability, promise the moon-on-a-stick then deliver nothing. Yay for the red government, they care only about bringing back a criminal and 200,000b lunches

You Bounder!, you have just made me spit my morning coffee all over my keyboard in hysterics, I will give you a 5.9 for wit , :lol:

[Insight]

Red faces in the land.

[OzMick]

"Good debtors will enjoy a special offer from the |bank of life-insurance coverage of Bt100,000."

If they get really lucky, they die and only leave their family B400,000 in the red.

Sorry Ricardo, but your reading skills have let you, and others, down. The cost of the credit card scheme was "only" B1 billion. The B410 billion that you quoted is for the rice pledging scheme/scam which is still going ahead - despite all warnings that it will be a disaster.

But there is hope! They intend to inspect rice " to determine that it is purely Thai rice and not mixed with rice from neighbouring countries." This is a trick well worth seeing - perhaps a challenge of 5 grains of rice, one each from Thailand, Cambodia, Laos, Myanmar and Malaysia. Pick the Thai rice!

They will probably resort to cheating and check their passports!

"Thirachai said yesterday that the government might not need to spend as much as Bt410 billion, as it planned to continue exporting the rice. This strategy will allow the government some working capital, he said."

Let us put this into perspective. They hope to sell rice @ USD800/ tonne, in reality lets estimate they average B20,000. So they will only have to sell 20,000,000 tonnes to break even, or about 7 times what is likely. The rest will be government debt. Who says having your party in power is no real advantage?

Edited September 30, 2011 by OzMick

[bkkjames]

Remember the Bush Gore Election ; the term flip flop came out I believe. Anyone keeping a running total yet?

[hellodolly]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

Agree to a point. I don't believe they ever intended to do it.

It is becoming increasingly clear that their main thrust in Government is to white wash all the red shirt activities and bring Thaksin back. When they have accomplished that they will then set out on a path to give Thaksin back his money with a high interest yield on it.

When all this is accomplished look for Yingluck to step down and Thaksin take over legally.

This will all be done with in the rule of law. Just as soon as they make it a law.

I like the part where they say

quote

"Thai Party's populist promise is too complicated for famers' debt payments."

But they were smart enough to vote for the PTP

If any one from the Nation is monetering this thread can you tell me what a famers is

[Thaddeus]

Red faces in the land.

And some well spanked <deleted> in the fields.

[samran]

While I'm tempted to just deride the swift cancellation, of yet-another daft pre-election promise from PTP, on balance I think it's better to applaud their realisation that this B410-billion scheme was-and-is a non-starter, wide-open to corruption & abuse & potentially very-damaging to the poor farmers !

Making them jump-through-hoops for normal bank-loans is more fiscally-responsible. Perhaps the new government might also care to continue the previous administrations efforts, to help wean the poor off high-interest mafia-loans, next ?

Well Done PTP !

A very good post and you have hit the situation right on the noggin. You have my vote for the most responsible response of the month.

what would have been responsible was not to make a promise in the first place.

But they did.

[KKK]

No country's government ever keeps its election promises.

But they should....An election promise is a contract...vote for me and I'll do this......failing to honor an election promise is therefore a BREACH of said contract and the electorate should be able to sue.

And just because somebody else does it doesn't make it OK.

We've put up with governments and polititians lying to us for far to long. It's time they were made accountable for what they say or promise.