Rice panel to mull urgent Bt140-bn loan for pledging

[webfact]

Rice panel to mull urgent Bt140-bn loan for pledging
SUPHANNEE POOTPISUT,
PETCHANET PRATRUANGKRAI
THE NATION



BANGKOK: -- THE FINANCE MINISTRY will propose at today's meeting of the National Rice Policy Committee that the panel consider approving an emergency short-term loan worth Bt140 billion to finance the rice-pledging scheme.

Bank for Agriculture and Agricultural Cooperatives (BAAC) president Luck Wajananawat yesterday said the request would be raised at the meeting, and |that the loan would be used to cover rice pledging during the 2013-2014 harvest season.

If the committee approves the short-term loan, it will be forwarded for Cabinet consideration. If then approved by the Cabinet, the revolving fund for the rice-pledging scheme will be raised to Bt640 billion from the present Bt500 billion.

However, the increased funding would only be on a one-year temporary basis, before the fund reverted to the original level of Bt500 billion on December 31 next year.

If the proposal is approved, the Cabinet will need to revise the October 3, 2012 resolution that sets the limit on revolving funds for the scheme at Bt500 billion.

The BAAC, which is the key state-owned institution in charge of the pledging, has advanced Bt680 billion since the scheme was kicked off in 2011, said Luck.

However, the Commerce Ministry has brought in only Bt140 billion for rice sold from its stockpiles, which has lowered the outstanding amount owed to Bt540 billion. For now, there is no liquidity to finance pledging for the new season, even though more than 1.2 million tonnes have been harvested, he said.

Advance payments

If the funding proposal is approved by the National Rice Policy Committee, the BAAC board will convene tomorrow to approve the advance payments for the scheme.

This will later be replaced by the Finance Ministry's loan and the BAAC will be entitled to interest payments from the government, he added.

Meanwhile, Deputy Prime Minister and Commerce Minister Niwatthumrong Boonsongpaisan said the government expected the country to export 7.5 million-8 million tonnes of rice this year.

Although rice prices have been falling, the government is still confident of reaching its export target for the year, of which about 2 million tonnes will be under government-to-government contracts during the remaining months, he said.

The minister refused to accept that the government faced a huge loss of Bt300 billion to Bt400 billion for the past two years of pledging.

He said more contracts were waiting to be inked next year, so the country should be able to export more rice and earn money to offset some of the losses from pledging.

"The pledging losses should be not |be more than Bt100 billion a year," he insisted.

-- The Nation 2013-11-07

[NongKhaiKid]

" The pleging losses should not be more than B100 billion a year ", doesn't that work out at B100 billion too much ?

[klubex99]

Other commentary on the subject raised the figure of around 130 Billion.

I wonder who is going to pay this loan back if the scheme has no monry on a consistent annual basis?

Oh.... I forgot... They will take it off the farangs at the airport.

[noikrit]

Oh ... the cost of buying votes !!!! .......

[Ricardo]

Yet more 'temporary' borrowing, by the BAAC to finance the rice scam, what an unexpected surprise ... Not !

Why doesn't the government merely pay-off its rising debt, to this government-owned bank, why give the impression that they're broke & can't, and risk upsetting Moody's ?

Especially if the shortfall is merely because the government continues to sell far less than expected, of their stocks of rice bulging the warehouse walls, or sells it at a loss, not that they'll ever admit to that ! "

It surely can't be because the government doesn't really have the money, for the scheme, so must continue to force their bank to borrow ever more ?

Risking the banking-system, whilst fiddling while Rome burns the books, is this really in the interests of the country ?

Standby for further obfuscation & white-lies, from the Finance Ministry, and much denial of knowledge of what's going-on, from the faux-PM & distant real-PM.

[PaullyW]

Did he speak to these guys: Post-audit panel puts rice pledging loss at bt330bn and rising

http://www.thaivisa.com/forum/topic/679707-post-audit-panel-puts-rice-pledging-loss-at-bt330-bn-and-rising/

Edited November 7, 2013 by PaullyW

[ChrisY1]

"However, the increased funding would only be on a one-year temporary basis,"

Sure......!!!

I think "temporary" here means the money won't last long in the bank.....there's still too many people filling the family accounts!

Repaying all these rice scheme loans is imposible.....the losses will simply be written off....no more said....

[monkeycountry]

This is due to some rice farmers complaining that payment was now delayed by 7 days and that they could only pledge like 80%of their rice, and had to sell the rest at market price which apparebtly is completely unacceptable to the now spoiled and greedy rice farmers.

notice how easily it is for rice farmers to get the PTP to comply with their every wish. They now get an extra 140 billion. Comparr this to the rubber farmers, who are only asking for an extra 5 billion. They have to block the streets just to get attention, and yet they don't get anything.

[GentlemanJim]

The BAAC, which is the key state-owned institution in charge of the pledging, has advanced Bt680 billion since the scheme was kicked off in 2011, said Luck.

However, the Commerce Ministry has brought in only Bt140 billion for rice sold from its stockpiles, which has lowered the outstanding amount owed to Bt540 billion. For now, there is no liquidity to finance pledging for the new season, even though more than 1.2 million tonnes have been harvested, he said.

Read and weep! 540 BILLION is still outstanding! That is all the clarity that is needed. What an epic business model....not! Now just why do they need a 2 trillion loan all at once? ah yes

For now, there is no liquidity to finance pledging for the new season

What a mess!

[worgeordie]

Yet more money to be thrown into the black hole,

still there are commissions to be made so it must

go ahead with no end in sight,

Its a crying shame,all this money could have been

used to do good projects in Thailand,but its just

been wasted.

regards Worgeordie

[Thait Spot]

Rice is a buying, storing and selling business.

A business that is running a massive loss

A business with a massive, growing debt to the bank

In most societies this would be closed down.

[AleG]

And so the collapse begins...

Utterly predictable, except for Thaksin cultists of course.

[Pib]

However, the increased funding would only be on a one-year temporary basis, before the fund reverted to the original level of Bt500 billion on December 31 next year.

Yes, a one-year temporary extension until next year when they ask for another temporary one-year extension. How do they distribute the money as they sure are using a lot of it...maybe by driving through the rice growing provinces throwing it out the back of a fast moving truck? They need to be sure to save a few truck loads for use just before the next election.

[LuckyLew]

Keep up the good work PTP .. you are doing a great job

Too funny ... a bank has no money to pay the rice farmers vote money .. TIT

Maybe Chalerm can donate his pink pimp-mobile or the PM can sell of one of her Hermes and donate the proceeds ..

Oh wait a minute .. I just woke of from a silly dream

[Neilly]

Rice panel to mull urgent Bt140-bn loan for pledging

What the hell...it's only Bt140 billion (of someone else's money)...chuck the cat another canary

[ratcatcher]

Rice mullers and rice millers. All heading downhill fast.

[waza]

The money pit continues

[webfact]

UPDATE:
Commerce Minister admits Bt260 billion loss from rice subsidy
By English News



BANGKOK, Nov 7 – Thailand has lost Bt260 billion from the government’s rice pledging scheme in the last two years, according to Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan.

He said the government has speeded up releasing rice from state stockpiles so as to pay debts to the Bank of Agriculture and Agricultural Cooperatives (BAAC) which has granted loans for the scheme.

The BAAC should be paid Bt200 billion by the end of the year despite declining rice prices in the global market, he said, adding that rice would be gradually exported to China from next month until December next year.

Thailand has sold one million tonnes of rice to China while a counter trade of Thai rice for the Chinese high-speed train project will be clear in Q3 next year, he said.

Luck Wajananawat, BAAC President, said the bank would propose to the next meeting of the National Rice Policy on guiding principles in finding revolving fund for the 2013/2014 harvest.

Loans totalling Bt140 billion may be sought to pay farmers for the 2013/2014 harvest while the Cabinet will be asked to extend the maximum revolving fund to Bt500 billion, said Mr Luck.

He said the BAAC has paid Bt600-800 billion for the rice subsidy but was paid at only Bt140 billion, making it impossible for the bank to secure new financial injection for the scheme. (MCOT online news)


-- TNA 2013-11-07

[PeterSmiles]

He said the BAAC has paid Bt600-800 billion for the rice subsidy but was paid at only Bt140 billion, making it impossible for the bank to secure new financial injection for the scheme. (MCOT online news)

800 Billion paid minus 140 Billion repaid = 660 Billion loss 260 Billion loss.

Ok, got it now.

Edited November 7, 2013 by PeterSmiles

[slapout]

The commerce spokesman may have make a small mistake on the time frame the 260 billion loss can be applied to, but with their accounting methods displayed in the past, figure published for rice purchased, rice in storage, rice missing/contanimated,rice sold/shipped etc. This press release is just a repeat of figures thrown out a year ago (which have been shot down by numerous whistle blowers).

To put the press release into a more informative, short form, he could have said, "we are scrambling to find funds to pay into the program, as its out of money again".

[Orac]

He said the BAAC has paid Bt600-800 billion for the rice subsidy but was paid at only Bt140 billion, making it impossible for the bank to secure new financial injection for the scheme. (MCOT online news)

800 Billion paid minus 140 Billion repaid = 660 Billion loss 260 Billion loss.

Ok, got it now.

The missing link is can the rice in storage after selling costs really be valued at 400 billion.

[JRSoul]

It is my hope that Thaksin and his cronies who foisted this criminal scheme on Thailand are found guilty of corruptly profiting from it and forced to repay all losses from their own assets.

[rubl]

"Deputy Prime Minister and Commerce Minister Niwatthumrong Boonsongpaisan insisted the pledging losses should be not be more than Bt100 billion a year"

Didn't he said hardly 80 billion a year a few weeks ago, and before that less than 100 billion over two years? At least he's flexible enough to amend his position. By the end of the year we might be on accepting 120 billion a year already

[AleG]

"Deputy Prime Minister and Commerce Minister Niwatthumrong Boonsongpaisan insisted the pledging losses should be not be more than Bt100 billion a year"

Didn't he said hardly 80 billion a year a few weeks ago, and before that less than 100 billion over two years? At least he's flexible enough to amend his position. By the end of the year we might be on accepting 120 billion a year already

Well, I see your Commerce Minister Boonsongpaisan 80 billions and I raise Permanent Economy Ministry Secretary Rungson 36:

Rungson said that with a simple calculation, he believed the loss should be "only Bt36 billion" a year.

He'll be fired after this demostration of his complete lack of ability to hold the position... annnny moment now.

[doctorproc156]

"The pleging losses should not be more than B100 billion a year" - only PTP can say such a thing openly with such a straight face.

[belg]

lets bankrupt the country

is what those croocks are doing, thinking

like there is no tomorrow

[Emdog]

Sounds like a pyramid scheme to me. Sort of like "I will pay 10,000 for X and sell it for 8,000, which I will give back to you if you give me more money to continue paying 10 and selling for 8." Like we say, throwing good money after bad. They are not just buying rice, they are buying votes, hence the "surcharge". Reality? What a concept!

[Robby nz]

Was wondering if this is the same 140 billion that it was reported that the BAAC would borrow on the 21/10.

21.10 The Bank for Agriculture and Agricultural Cooperatives (BAAC) will borrow 140 billion baht with the Finance Ministry's guarantee to fund the 270-billion-baht budget set for the government's rice-pledging

The WILL seems to indicate they had permission to borrow that lot then.

So is this another 140 billion that is being 'mulled' ?

Anyway where will they borrow this money from?

We already have 350 billion borrowed from Thai banks and the Govt has said it will be issuing more bonds.

There is the 2.2 trillion coming up, the Govt has said 60% of that is expected to be borrowed from Thai banks.

There was in the last few days a report that one minister or other said they Thai banks had enough liquidity to cover the lot.

Could that be an indication that it appears that no one else wants to lend it.

The piggy bank must be getting close to the bottom and not just the BAAC.

[monkeycountry]

He said the BAAC has paid Bt600-800 billion for the rice subsidy but was paid at only Bt140 billion, making it impossible for the bank to secure new financial injection for the scheme. (MCOT online news)

800 Billion paid minus 140 Billion repaid = 660 Billion loss 260 Billion loss.

Ok, got it now.

It is because you do not understand Thai accounting. Like some amateur stock traders, the PTP seem to believe in socalled paper loss.

Ie. You buy a share for 100 baht, the next day the value drops to 50 baht. Then many amateurs, and apparently the PTP, believe they still have shares worth 100 baht since they have not yet sold their share. Any professional stock trader or accountant will of course tell you that you have lost 50 baht and now have shares worth only 50 baht.

[siampolee]

Shouldn't that headline read.

Rice Panel to mill another 140bn baht loan so as to enable the cash flow is still available to pay the stipends that Thaksin has to honour to ensue his ongoing dictatorial aims campaign..

Those stipends are now even more vital due to recent events to ensure that Thaksins campaign is carried on.