Moody's concerned over Thailand's rice pledging scheme

[webfact]

Major rating agency concerned over Thailand's rice pledging scheme
By English News



BANGKOK, July 16 - Leading global credit rating agency Moody's Investor Services urged the Thai government to ensure that its rice pledging policy would not overburden the state coffers.

Speaking to reporters after meeting with Moody's executives today, Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong said Moody's sought details about the government's rice pledging scheme. They also asked the government not to overspend its budget for the scheme.

Mr Kittiratt said he assured Moody's that the government's rice pledging policy implementation would not cause a heavy burden on state coffers given that the budget has already been allocated and there are cash flows from the release of government's rice stockpiles.

The deputy prime minister asserted the government would achieve a balanced budget as targetted in 2017 while budget deficit has been gradually reducing since last year.

The government would go ahead with its Bt-2 trillion mega infrastructure project and public debt would not exceed 50 per cent of the country's gross domestic product (GDP), Mr Kittiratt said.

He added that the government has no additional economic stimulus and once the Bt2-trillion mega project and Bt350 billion water management plan get off the ground, they will help stimulate the economy.

Moody's also expressed concern over rising household debt which Mr Kittiratt said commercial banks as major lenders would take care of the matter even though major debt partially incurred by the government's first-time car buyer and home-buyer schemes.

He added that state lending mainly involved dealing with accumulated debt owed to loan sharks and that benefits people. (MCOT online news)


-- TNA 2013-07-16

[webfact]

ECONOMY
No indication for rating cut: Kittiratt


A file photo on June 13 shows Kittiratt and Prasarn at a seminar in Bangkok.

BANGKOK: -- There is no indication that Moody's Investors Service may lower Thailand's sovereign rating, said Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.

After the discussion with Moody’s executives on Tuesday, he said topics discussed covered mostly the regional economic outlook as well as sovereign rating outlook. Kittiratt also showed the commitment that Thailand would achieve the balanced budget in 2017 as planned.

There is no indication that the rating agency would cut Thailand’s rating, he said.

Per question on the Bt2 trillion infrastructure investment scheme, he told Moody’s that the scheme would continue as planned and that the government would keep the public debt below 50 per cent of gross domestic product (GDP).

He also said that Moody’s was not worried about the rice-pledging scheme. He said the government is capable of keeping control of the disbursement of budgets for the scheme.

Yesterday, Bank of Thailand governor Prasarn Trairatvorakul told ASEAN ambassadors that the government’s policies are geared towards short-term gains and impacts on the economy could wane. On this, Kittiratt rebutted that should the central bank want to help propel the economy, it should further cut the interest rate.

-- The Nation 2013-07-16

[Bluespunk]

Uh oh, is that the sound of faeces hitting the fan?

[Farang0tang]

''No indication for rating cut: Kittiratt''

...wait for it, wait for it!

[Payboy]

Uh oh, is that the sound of faeces hitting the fan?

Would be a major loss of faeces.

[hellodolly]

I think they have no idea how out of their league they are in trying to B S Moody's

"He added that state lending mainly involved dealing with accumulated debt owed to loan sharks and that benefits people."

That was what Thaksin did. Problem was it turned into new motor bikes and electronic toys such as new state of the art phones.

A great plan if the Government hands the money over to the loan shark directly.

[Thai at Heart]

''No indication for rating cut: Kittiratt''

...wait for it, wait for it!

That has to be one of the biggest political booby traps ever laid.

[Thait Spot]

_{Moodys will just look at the hard facts and metrics}

[Jasun]

First headline reads that Moody's is worried about rice pledging scheme. The very next article states that Moody's is not worried about the rice pledging scheme. Maybe we should all be worried. Or not. It would have been so much easier to just hand out cash.

[Chang_paarp]

Will they try to sue Moodys for damaging the image of Thailand.

[CrisRMenumate]

Moody's needs to be careful, if they do anything or say anything that damages the reputation of the LOS they may be subject to law suits for causing harm to the LOS... just sayin'

[monkeycountry]

I wonder if the PTP knows the difference between a group of red shirts and Moody's?

In case they don't, here is a hint. The red shirts will believe you when you say "don't worry, all is in order, we know what we are doing", to Moody's such a comment means absolutely nothing, they only believe unedited facts and figures.

[deecee10]

There go the naughty rumour-mongers again.

How dare Moody's blow away the smoke and crack the mirrors.

[IMA_FARANG]

He added that state lending mainly involved dealing with accumulated debt owed to loan sharks and that benefits people. (MCOT online news)

--------------------

What?

Please run that statement by me again, I don't understand.

[Baerboxer]

ECONOMY

No indication for rating cut: Kittiratt

A file photo on June 13 shows Kittiratt and Prasarn at a seminar in Bangkok.

BANGKOK: -- There is no indication that Moody's Investors Service may lower Thailand's sovereign rating, said Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.

After the discussion with Moody’s executives on Tuesday, he said topics discussed covered mostly the regional economic outlook as well as sovereign rating outlook. Kittiratt also showed the commitment that Thailand would achieve the balanced budget in 2017 as planned.

There is no indication that the rating agency would cut Thailand’s rating, he said.

Per question on the Bt2 trillion infrastructure investment scheme, he told Moody’s that the scheme would continue as planned and that the government would keep the public debt below 50 per cent of gross domestic product (GDP).

He also said that Moody’s was not worried about the rice-pledging scheme. He said the government is capable of keeping control of the disbursement of budgets for the scheme.

Yesterday, Bank of Thailand governor Prasarn Trairatvorakul told ASEAN ambassadors that the government’s policies are geared towards short-term gains and impacts on the economy could wane. On this, Kittiratt rebutted that should the central bank want to help propel the economy, it should further cut the interest rate.

-- The Nation 2013-07-16

Well it's up to Moody's to make a statement which will either support the minister's conclusions from the meeting or not.

[Suffinator]

It's a foregone conclusion that the RPS was always going to bite them firmly in the backside and now what this debacle really take momentum. Balancing the books is going to be different with a downturn in the economy, lack of trade exports and massive over spending where most is taken up in graft. Oh dear oh dear.

[PoodMaiDai]

Moodys doesn't understand Thainess.

[drdoom6996]

Moody'[s understand that this government has no clue. They also understand that the Thai people actually believe what the government says. Moody's will not understand when the Thai government says they will do something and then do nothing. Even the Thai people do not. Som Nom Nha.

[Robby nz]

while budget deficit has been gradually reducing since last year.

Has the budget deficit been reduced?

He is reported as saying that he told them there is no problem with the rice scheme, I wonder if he gave them actual facts and figures, like how much has been sold in G2G deals and how much cash received?

Do you think Moodys would have heard about the white lies and possibly taken that into account?

Of course the 2 trillion and 350 billion are off budget items so they don't really count do they.

His face on the picture with the pretty red shirt looks like his finger has just gone through the toilet paper.

[Ricardo]

But was the DPM/FM telling the truth, or was it another 'white-lie', only Moody's opinion counts.

[watcharacters]

_{Moodys will just look at the hard facts and metrics}

.

Does Moodys factor in corruption in the ratings?

[laocowboy2]

Rating agencies are well aware of the true situation - and meetings with ministers are more about courtesy than anything else.

Any agency will be looking at the data - and in the case of Thailand most of the economic and banking sector data is fairly reliable.

Our own house view is that Thailand is a country with an A- central bank, a BBB- civil service and a B- political class. Thailand is likely to keep its BBB+ rating for now - but it is nowhere as solid as it was a couple of years ago.

while budget deficit has been gradually reducing since last year.

Has the budget deficit been reduced?

He is reported as saying that he told them there is no problem with the rice scheme, I wonder if he gave them actual facts and figures, like how much has been sold in G2G deals and how much cash received?

Do you think Moodys would have heard about the white lies and possibly taken that into account?

Of course the 2 trillion and 350 billion are off budget items so they don't really count do they.

His face on the picture with the pretty red shirt looks like his finger has just gone through the toilet paper.

[laocowboy2]

Rating agencies are well aware of the true situation - and meetings with ministers are more about courtesy than anything else.

Any agency will be looking at the data - and in the case of Thailand most of the economic and banking sector data is fairly reliable.

Our own house view is that Thailand is a country with an A- central bank, a BBB- civil service and a B- political class. Thailand is likely to keep its BBB+ rating for now - but it is nowhere as solid as it was a couple of years ago.

while budget deficit has been gradually reducing since last year.

Has the budget deficit been reduced?

He is reported as saying that he told them there is no problem with the rice scheme, I wonder if he gave them actual facts and figures, like how much has been sold in G2G deals and how much cash received?

Do you think Moodys would have heard about the white lies and possibly taken that into account?

Of course the 2 trillion and 350 billion are off budget items so they don't really count do they.

His face on the picture with the pretty red shirt looks like his finger has just gone through the toilet paper.

[watcharacters]

Rating agencies are well aware of the true situation - and meetings with ministers are more about courtesy than anything else.

Any agency will be looking at the data - and in the case of Thailand most of the economic and banking sector data is fairly reliable.

Our own house view is that Thailand is a country with an A- central bank, a BBB- civil service and a B- political class. Thailand is likely to keep its BBB+ rating for now - but it is nowhere as solid as it was a couple of years ago.

while budget deficit has been gradually reducing since last year.

Has the budget deficit been reduced?

He is reported as saying that he told them there is no problem with the rice scheme, I wonder if he gave them actual facts and figures, like how much has been sold in G2G deals and how much cash received?

Do you think Moodys would have heard about the white lies and possibly taken that into account?

Of course the 2 trillion and 350 billion are off budget items so they don't really count do they.

His face on the picture with the pretty red shirt looks like his finger has just gone through the toilet paper.

..

You almost sound like a representative from Moody's

Is that the case?

Edited July 16, 2013 by watcharacters

[waza]

Leading global credit rating agency Moody's Investor Services urged the Thai government to ensure that its rice pledging policy would not overburden the state coffers.

There is no indication that Moody's Investors Service may lower Thailand's sovereign rating, said Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.

I think the first statement from Moodys may be an indicator

[MoonShadow]

Just wait until the commercial banks are pressured into taking over the other Goverment leding, with no security and even less chance of being repaid!!

[Neilly]

Mr Kittiratt said he assured Moody's that the government's rice pledging policy implementation would not cause a heavy burden on state coffers given that the budget has already been allocated and there are cash flows from the release of government's rice stockpiles.

I'll take that with a LARGE pinch of salt...anyone else?

[CantSpell]

if conspiracy theories are true, it could also be a face saving exercise from Moody's ...

Let's say for example that a Dubai resident had a meeting with one of those 150 most powerful people in the world (the ones that tell Moody's what to say)...

Could have sorted out an agreement by bailing them out around 49% of the country while keeping the other 51%

We know those are magic numbers here

[Robby nz]

Just wait until the commercial banks are pressured into taking over the other Goverment leding, with no security and even less chance of being repaid!!

They already have been Moon Shadow.

2 Govt banks lent 200 billion for the flood scheme and the rest has been lent by 2 Thai commercial banks.

[khunken]

I see Mr white lie is again calling for a rate cut. The last time he got it - only a month or so ago - the Thai Baht plunged. Then he started talking about a rate increase.

Kittirat's 'vision' seems to be measured in days of 1 digit. The man is an idiot.