Thai bank clarifies why it has no money to pay rice farmers

[Baerboxer]

Maybe they plan on ciphering it off out of the two trillion baht they are trying to borrow for the government's infrastructure mega projects. It is a shame that, that bill also seems to be dead in the water. They may find themselves waiting a little longer that 45 days for payment.

So the government ram the 2.2. trillion loan through the senate by deceiving senators with opposing views and a little cheating; and presumably hope to get it into law as quickly as possible so they can get their hands on the cash. The amount needed to finance the rice scam is small beer to the amount left for 'other" uses.

The bank will add another 45 days ad infinitum until the government gets the 2.2

Could be another potentially explosive situation for madame PM if the CC rule against the 2.2 loan bill.

[Baerboxer]

Do like what the US did. Print more money and devalue the currency.

Yes, that is the reason why for example the price for a tin of mackerel fish increased from 10 baht to 14 baht.

That's a whopping 40% price increase for a basic food product.

anomaly.

Inflation is very very much subdued at the moment

Yes, I think people must imagine it's much higher than it is

A considerable portion of our regular household shopping must be anomalies then by your reckoning.

[transam]

Those on a nice salary really don't give a toss..........................

[ginjag]

Everyone's missing the point here......the farmers have their Farmer's Bank ( BAAC ) credit cards so they don't need the cash immediately . They use their credit cards and pay interest so that by next year, the bank will have plenty of money to pay them so in a roundabout way, the banks will pay the farmers with the money the farmers have paid them. I think it will be a good idea to buy shares in the banks because they charge for everything,, transactions, ATM cards, loans etc., even if you are in credit. Let's face it, banks never give anything away or lose.....

.....oh, sorry. I forgot that when I opened a new bank account with SCB depositing a large near-7-figure-sum, they gave me..........................................

a GLASS

You forgot to mention it was Waterford Crystal ???? 5555

I got a ball point pen (not a Parker) 55555555555

Thai farmer bank wanted 800 bht to open atm account. What TF,

BKK bank 300bht.

[smedly]

Maybe they plan on ciphering it off out of the two trillion baht they are trying to borrow for the government's infrastructure mega projects. It is a shame that, that bill also seems to be dead in the water. They may find themselves waiting a little longer that 45 days for payment.

So the government ram the 2.2. trillion loan through the senate by deceiving senators with opposing views and a little cheating; and presumably hope to get it into law as quickly as possible so they can get their hands on the cash. The amount needed to finance the rice scam is small beer to the amount left for 'other" uses.

The bank will add another 45 days ad infinitum until the government gets the 2.2

Could be another potentially explosive situation for madame PM if the CC rule against the 2.2 loan bill.

if the CC rule against the loan bill then all will be revealed just how poor a state this government has left Thailand - after the downfall there needs to be a far reaching audit to see how much money has gone missing from the government purse, I imagine there will be a very big hole of unaccounted/missing billions of baht - the 2x trillion would have allowed them to hide the truth a bit longer

I really do feel this is going to be the worst case of government corruption on a magnitude that nobody can imagine right now

Do you think YL is considering not returning to Thailand right now ?

I hope I'm wrong

[loonodingle]

Just print more money. Thats what we do in England. Its easy.

[Ricardo]

"He said the bank has earmarked only 20 billion baht for the scheme, but farmers have so far sold rice amounted to over 30 billion baht to the government."

Does that mean only 30% of the farmers are waiting for money then and the rest have been paid already? Answers on the back of a postage stamp

Yes, except that the harvest is still underway, with a lot of rice yet-to-be-delivered to the mills under the scheme, and there is currently NO money left at BAAC to pay the farmers with !

Hence the very-urgent need to BAAC to issue bonds and raise more cash, since the government itself doesn't seem have to money either, VAT-receipts are down several-percent as the recession really starts to bite & affect government-finances.

Just print more money. Thats what we do in England. Its easy.

If Thai GDP-growth is 1% this year, and UK growth is 1.4% (according to the OECD), then the UK is actually doing better than Thailand this year ?

I can't believe I just wrote that, but I do believe it's true, who'd a' thunk it !

Edited November 22, 2013 by Ricardo

[bander]

The rice pledging scheme is at this moment being spent by the Shinawatra government to pay the redshirts (farmers) making chaos and anarchy in Bangkok so that Thaksin get his amnesty and can return to Thailand an keep on ripping off farmers as usual

[jvs]

If you are the bank and you just say you don't have the money,you get to keep the interest on 30 billion for 45 days.

Now the farmers have a credit card and you let them use it for the next 45 days.

Get your calculators out people!

Or have i been here too long?

[animatic]

"it is lacking enough quiddity"

Seriously. Is this a hint that they want help from the Brits? (It literally says quiddity under the picture.)

Spelled wrong that's Cupidity, and it has more than enough to go round

[Ricardo]

In fact....now that they have announced that they have no money...could there be a run on the banks by the gen public?

BAAC is a government bank and not tied to any private banks. Your accounts are insured up to one million Baht. I won't guarantee what those Baht will be worth on the World market once this government is done, though.

"Your accounts are insured up to one million Baht"

Isn't the insurance also by the government Deposit Protection Agency, the same government which can't reimburse what's already been paid-out under the scheme, by the government-owned bank ?

And so they all play pass-the-parcel, while the rice farmers wait, increasingly impatiently to see their cash.

Edited November 22, 2013 by Ricardo

[seabass69]

"it is lacking enough quiddity"

Seriously. Is this a hint that they want help from the Brits? (It literally says quiddity under the picture.)

It does indeed.

It also says it will "clarify farmers" - is that like butter?

Another quality English/Thai thesaurus translation: 'CLARIFY'-to make clear.

'CLEAR'-see through.

'SEE-THROUGH'-invisible.

"If we clarify the farmers, they will disappear!"

[Thait Spot]

Surely they can pay the farmers in kind.

With rice

[Jip99]

Do like what the US did. Print more money and devalue the currency.

Thailand long-since learned that lesson.

I believe they were buying Dollars with it....................

[seabass69]

Everyone's missing the point here......the farmers have their Farmer's Bank ( BAAC ) credit cards so they don't need the cash immediately width=19 alt=whistling.gif> . They use their credit cards and pay interest so that by next year, the bank will have plenty of money to pay them so in a roundabout way, the banks will pay the farmers with the money the farmers have paid them. I think it will be a good idea to buy shares in the banks because they charge for everything,, transactions, ATM cards, loans etc., even if you are in credit. Let's face it, banks never give anything away or lose.....

.....oh, sorry. I forgot that when I opened a new bank account with SCB depositing a large near-7-figure-sum, they gave me..........................................

a GLASS

No umbrella?

[Thai at Heart]

Now this issue can be understood very very clearly. This has to cost a lot of votes.

[SOTIRIOS]

Cool. The government has run out of money to pay the farmers. Does that mean they need to borrow more money (on top of the 350 billion baht for flood project, and 2.2 trillion baht for infrastructure projects).

.'borrow' .....

[PeterSmiles]

Bank clarifies why it has no money to pay farmers

Dear farmers, we didn't pay you, because we ran out of money. I hope this helps.

NEXT...................

[trevor4]

45 days...

which was preceded by...

Thailand scrambled on Tuesday to fund a rice subsidy scheme that has not paid out to farmers since Oct. 1

which is 53 days to today + 45 days = 98 days without payment

.

Edited November 22, 2013 by trevor4

[salapau]

They've lent it all to the " government workforce " at cheap interset rates to build even better homes and new businesses.

[rct99q]

Tried to withdraw a couple of hundred thousand from them this morning.....and was told to come back in a couple of months......went to the atm and got KIP.....this country is messed up!

[Thai at Heart]

I wonder if at any point in the discussion the real reason why they have no money was revealed.

"We haven't sold enough rice, and even if we do, the price means we lose 40%

[thaicbr]

Tried to withdraw a couple of hundred thousand from them this morning.....and was told to come back in a couple of months......went to the atm and got KIP.....this country is messed up!

Really!!! You have an account with BAAC?

KIP as in Laos money???

[phantomfiddler]

I read somewhere that the government doesn,t have the money for the 1st vehicle rebate either ! Where is all the money going, as if yyou didn,t know

[tomacht8]

Thailand as the (ex) biggest rice exporter in the world buys its own rice 30-40% higher than the world market price and stockpiled the rice,
like a rare non-reproducible commodity.

They could also buy sand in the Sahara and stockpile the sand there.

Edited November 22, 2013 by tomacht8

[siampolee]

Great idea was it not from the collective brain cell of this P.T.P. puppet government.

Yes all you farmers we will ensure that your money will meet at both ends.

Ooop's

Sorry we forgot to tell you that by stretching your money so thin it has snapped, as a result although both ends meet there's a damm big hole in the middle.

See below for a Will Rogers quote so near the truth is it not. ( WWW. Will Rogers today.com)

The government says they have loaned over One Billion dollars to the Farmers. In other words, we can't help you make any money, but we will show you where you can owe some more."

Edited November 22, 2013 by siampolee

[mrtoad]

45 days...

If Chalerm was sorting it,it would be 90 days

[metisdead]

Off topic posts and replies have been removed.

[pistachios]

Seems like the bank is in deep trouble and it will keep on getting worse as long as the rice idiotic plan continues.

Should I tell my inlaws to get their money in another bank as a precaution measure or the fact that the BAAC is government owned should prevent any bad surprise to happen?

[laocowboy2]

"He said the bank has earmarked only 20 billion baht for the scheme, but farmers have so far sold rice amounted to over 30 billion baht to the government."

Does that mean only 30% of the farmers are waiting for money then and the rest have been paid already? Answers on the back of a postage stamp

I wonder how much (cheap) rice has come in over the border to pick up the price difference? Quite a loss would be my guess - which may be why the cash ran out so quickly/