Thai Finance Ministry: BAAC has sufficient funds for rice subsidy

[webfact]

Finance Ministry: BAAC has sufficient funds for rice subsidy
By English News



BANGKOK, Nov 23 - The Commerce Ministry stood firm that it has enough budget to subsidise the rice pledging plan which needs a circulating fund of Bt500 billion.

Deputy Finance Minister Tanusak Lek-uthai denied a report that the Bank of Agriculture and Agricultural Cooperatives (BAAC) ran out of funds for the rice subsidy scheme and reassured that the government is capable of managing the programme under the Bt500 billion framework.

The BAAC has paid Bt3.52 billion for the rice purchase plan which reached 20,000 farmer households, he said.

He said the government has spent Bt680 billion to purchase rice and returned Bt180 billion to the BAAC, adding that the BAAC has Bt500 billion revolving fund for rice purchases until the end of this year.

The BAAC was allocated an extra Bt82 billion for next year's rice subsidy, Bt55 billion of which will be spent on rice subsidy for the 2013/2014 harvest, he said.

Adding Bt24 billion from the Commerce Ministry, the BAAC will have a revolving fund of Bt79 billion which is sufficient for the scheme, said Mr Tanusak.

He said the Public Debt Managment Office will issue bonds for the Bt75 billion revolving fund and the Cabinet has approved Bt7.1 billion to compensate the BAAC for rice packages.

The BAAC will also earn additional money from sales of rice on a government-to-government basis, he said. (MCOT online news)


-- TNA 2013-11-23

[ratcatcher]

That's about all I can think of regarding what the government says.

[chainarong]

The old saying of where there is smoke there is fire, might just apply here, not much will be gained except Thailand's loss of finances ,with this subsidy hogwash , except of course vote buying, regardless of this out come with the BAAC, the point raised is that funds are lacking and the PTP will go to any lengths to stay in power, with vote buying , no more no less, are the financial coffers of Thailand in good hands???? I think not.

[billd766]

The bank says it has no money to pay the farmers and Deputy Finance Minister Tanusak Lek-uthai denied the report.

He said the Public Debt Managment Office will issue bonds for the Bt75 billion revolving fund and the Cabinet has approved Bt7.1 billion to compensate the BAAC for rice packages.

However I suspect that the farmers want cash and they want it NOW and NOT after the bonds are sold, if they actually find a buyer.

It looks as though the government does indeed have NO money to give to the bank to pay the farmers, so where did it go to?

[cornishcarlos]

One contradiction followed by another, throw in a couple white lies, a few blatant lies and mix together with some made up figures. Everything is fine in the world of Red

[Robby nz]

It is reported elsewhere that the 82 billion that the minister mentioned has been allocated from NEXT YEARS budget.

So we see them robbing the future to pay the present.

[Neilly]

Pork Pies all round Mr Ratcatcher

[Moruya]

The PTP had better make sure this is all above board or there will be another raft of litigation biting their conniving buttocks

[Crushdepth]

The bank says its run out of money and farmers haven't been paid, but the Finance Minister denies it...

Edited November 23, 2013 by Crushdepth

[NeverSure]

They could borrow the money from the multi-billion dollar flood control fund which hasn't been spent yet. (555555555555)

[soundman]

They could borrow the money from the multi-billion dollar flood control fund which hasn't been spent yet. (555555555555)

Didn't you see the backlog of orders at Ferrari?

Seriously though, what is one to believe these days with every department and ministry contradicting each other with one sensational headline after the other? Would be good to actually see some facts.

[Moruya]

They could borrow the money from the multi-billion dollar flood control fund which hasn't been spent yet. (555555555555)

That would assume that it hasn't been spent on diamond encrusted clocks or shipped out of the country in heavy suitcases

[waza]

"BANGKOK, Nov 23 - The Commerce Ministry stood firm that it has enough budget to subsidise the rice pledging plan which needs a circulating fund of Bt500 billion."

There some good news, but hang on.

"He said the government has spent Bt680 billion to purchase rice and returned Bt180 billion to the BAAC, adding that the BAAC has Bt500 billion revolving fund for rice purchases until the end of this year."

So there were overdrawn by 680 billion baht and now they are overdrawn by 500 billion baht, so they have zero balance. How is that enough budget to subsidise the plan? But wait there's more.

"The BAAC was allocated an extra Bt82 billion for next year's rice subsidy, Bt55 billion of which will be spent on rice subsidy for the 2013/2014 harvest, he said. Adding Bt24 billion from the Commerce Ministry, the BAAC will have a revolving fund of Bt79 billion which is sufficient for the scheme, said Mr Tanusak."

So now he says the BAAC doesn't have enough budget and must be allocated extra funds which will be funded by the Public Debt Management Office who will increase their debt load.

Hmm, this spin doesn't hold water, sounds like more misdirection and a case of robbing Peter to pay Paul, a sure formula for financial disaster.

[khwaibah]

Someone is full of Bull Shyt..

http://www.thaivisa.com/forum/topic/683351-thai-bank-clarifies-why-it-has-no-money-to-pay-rice-farmers/

[Sunisalom]

Where did the figure of B500 Billion for rice subsidies come from, all of a sudden?

-mel.

[billd766]

The great thing about being honest and telling the truth is that it is easy to remember.

The first lie is easy and the next isn't hard but after that you lose track and then you ARE screwed up.

Edited November 23, 2013 by billd766

[Thai at Heart]

Can the left hand please tell the right hand that ptp is in full porkie pie mode?

[ginjag]

3.5 billion paid out , to 20,000 farmer households ???? what are farmer households ??? nationwide ???

In my large amper (town area) there are at least 20,000 households-farmers with land.

They said HOUSEHOLDS paid--doubt it--I think it should have said AR#E Holes. May be I'm out of my depth with the subject, but the households paid 20,000 only ???? oh well it must be true.

[Ricardo]

"I spy, with my little eye, another Red White-Lie !"

[khwaibah]

Where did the figure of B500 Billion for rice subsidies come from, all of a sudden?

-mel.

Same place TAT gets theirs....

[siampolee]

Indeed this tissue of lies would be beyond belief in the real world. However here in P.T.P. Plunderland all is sweetness and light, money is freely available to the politicians it seems

However the lower orders the rice growers are yet again being shafted thus they are now unsure whether their anuses are punched, bored or countersunk due to the constant shafting processes being employed by Thaksins puppet government.

However it is now acknowledged that the P.T.P. minister and the M.P' s are suffering from ''piles.''

''Piles of money,'' due to the creative scams schemes so beloved by this puppet government.

[Pimay1]

"I spy, with my little eye, another Red White-Lie !"

The bank says they don't have the money. Mr. White Lies says they do. Who do you believe?

[jpeg]

It is reported elsewhere that the 82 billion that the minister mentioned has been allocated from NEXT YEARS budget.

So we see them robbing the future to pay the present.

After the intended VAT hike to 8%. A whopping 10% was floated, but they thought better to ease it in slowlySo, if they're still here (doubtful IMHO), look forward to yet more inflation to cover their incompetence/blatant theft.

[tomacht8]

"BANGKOK, Nov 23 - The Commerce Ministry stood firm that it has enough budget to subsidise the rice pledging plan which needs a circulating fund of Bt500 billion."

There some good news, but hang on.

"He said the government has spent Bt680 billion to purchase rice and returned Bt180 billion to the BAAC, adding that the BAAC has Bt500 billion revolving fund for rice purchases until the end of this year."

So there were overdrawn by 680 billion baht and now they are overdrawn by 500 billion baht, so they have zero balance. How is that enough budget to subsidise the plan? But wait there's more.

"The BAAC was allocated an extra Bt82 billion for next year's rice subsidy, Bt55 billion of which will be spent on rice subsidy for the 2013/2014 harvest, he said. Adding Bt24 billion from the Commerce Ministry, the BAAC will have a revolving fund of Bt79 billion which is sufficient for the scheme, said Mr Tanusak."

So now he says the BAAC doesn't have enough budget and must be allocated extra funds which will be funded by the Public Debt Management Office who will increase their debt load.

Hmm, this spin doesn't hold water, sounds like more misdirection and a case of robbing Peter to pay Paul, a sure formula for financial disaster.

Good question. Where are the 500Billion Baht?

Is this the stokepiled, unsold rice?

Bought 40% above the market price?

value currently 357 Billion Baht

loss: 143 Billion Baht?

(143.000.000.000.) Hope the number is right?

Hey u could build 14.000 nice Houses for 1 Million Baht each.

That would be the loss then?

i am confused.

Yesterday the BAAC reported that they can not pay the farmers.

They must wait 45 Days more?

So were are the 500 Billion? (now)

Edited November 23, 2013 by tomacht8

[Ricardo]

"I spy, with my little eye, another Red White-Lie !"

The bank says they don't have the money. Mr. White Lies says they do. Who do you believe?

The bank says they've run out of money, and were telling farmers yesterday that they should expect to wait an extra 45-days, other TV-posters yesterday were confirming that they've failed make payments on-time due to family-members who have deposited their rice at the mills, and IIRC one claimed that he had been denied withdrawing some of the money he has deposited with the bank.

Then in the OP the Deputy Finance Minster (one of 'Mr White Lies' flunkies) says that "the Public Debt Management Office will issue bonds" and "The BAAC will also earn additional money from sales of rice on a government-to-government basis", from this I would conclude that the BAAC are bankrupt, as they said, but that the government hopes to refinance them as-and-when.

So personally I believe the BAAC, and am surprised that the depositors and creditors aren't storming the bank's branches, demanding their money !

Why is the bank still open for business ? Why didn't the BoT or the government put in the cash-funds, to enable BAAC to continue to operate normally before this mess unfolded, surely it can't be that the whole system of government-finances is bankrupt ? How long before Moody's notices, and reacts to, this unfolding situation ?

[ratcatcher]

How long before Moody's notices, and reacts to, this unfolding situation ?

Unfolding is right.

[Crushdepth]

I just want to know what kind of idiot would issue this government credit.

[winstonc]

I just want to know what kind of idiot would issue this government credit.

easy sir they will print more notes problem solved and gone away....

[slapout]

I just want to know what kind of idiot would issue this government credit.

The idiots may be closer than you think. What better capital to invest in you home territory than that you have plundered from the same instituation?????

[Robby nz]

I have been interested enough in this rice thing to keep a small data base of some of the quotes from ministers and others, for instance :

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.

So a month ago the BAAC needed 270 billion to fund the scheme and was going to borrow 140 billion to tide it over.

Now we have the finance ministry saying all they need is 79 Billion

That was one quote that I can use but there are several more that I cant, however I will paraphrase :

The commerce Minister is claiming 7 billion from cabinet for rice given to flood victims or as overseas aid.

It would seem without providing any proof of what they have given to who.

An independent costing of the scheme says that the cost of buying the rice from farmers plus operating costs is 26,605.52 B per ton

this means the govt loses 15,169.31 B per ton.

Add in the off season crop and the Govt has bought 3.62 million tons of rice in the first 2 years so as of 31 Jan 2013 the actual loss is 459.61 billion B

And finally regards the 82 billion :

The 82 billion baht will come from the fiscal-2014 budget earmarked to pay the BAAC's debt.

So as I said before they are dipping into next years budget to pay this years debt.