EC approves borrowing to maintain Thai rice pledging

[webfact]

EC approves borrowing to maintain rice pledging
The Nation

BANGKOK: -- The Public Debt Management Office will soon borrow Bt38 billion to keep the rice-pledging scheme afloat after the Election Commission approved the additional funding as for an ongoing project.

Suwit Rojanavich, deputy director-general of the office, said yesterday that it had received Bt75 billion in proceeds from issuing bonds and could earn Bt37 billion. The amount of borrowing would be controlled under the pledging-project budget set at Bt410 billion.

Loans for other projects under state-owned enterprises could be deferred during the caretaker government's term. Delaying the Bt350-billion water-management and Bt2-trillion infrastructure-development projects should help reduce the ratio of public debt to gross domestic product by 2-3 percentage points.

The EC also approved the Finance Ministry’s plan to extend the diesel excise tax waiver to end-January.

It would be up to the new government whether this would be extended when the new deadline comes.


-- The Nation 2013-12-25

[andygunther]

Now all of a sudden it's a rush to pay the farmers .... Disgruntled farmers, no votes.

Edited December 25, 2013 by metisdead
Bold font removed.

[Valentine]

I thought they were busy convincing the farmers the delay in payments was all the fault of the Dems when in actual fact they simply did not have the money otherwise why the delay.

[JRSoul]

This has to be a Guinness record for stupidity - borrowing money to prop up a scam on the point of collapse and which has already lost billions. What happened to the "expedited rice sales" to raise the necessary finance?

[h90]

This has to be a Guinness record for stupidity - borrowing money to prop up a scam on the point of collapse and which has already lost billions. What happened to the "expedited rice sales" to raise the necessary finance?

It is many things but not stupid. What does it matter if Thailand gets bankrupt if they can fill their pockets for a couple more years?

[tominbkk]

"Quick Quick appease the peasants! An election is coming up!"

Somewhere in the desert, a megalomaniac is shouting at his computer to his Skype sycophants.

"I think, you act! And don't forget it!"

[Naam]

This has to be a Guinness record for stupidity - borrowing money to prop up a scam on the point of collapse and which has already lost billions. What happened to the "expedited rice sales" to raise the necessary finance?

make up your mind please. either the rice was paid for and losses were already incurred or the rice is paid now causing losses. no such thing like "additional losses".

[up-country_sinclair]

Can someone please explain to me why the election commission has any authority whatsoever over the rice pledging scheme?

[LuckyLew]

Do all the EC employees now wear red shirts to work?

This is absolutely awful

Money transfer fro Dubai now complete?

[AyG]

Can someone please explain to me why the election commission has any authority whatsoever over the rice pledging scheme?

It doesn't. However, since an election has been called if the government wants to raise cash (or do anything that would impact the next government) it must get the approval of the electoral commission.

[PeterSmiles]

This has to be a Guinness record for stupidity - borrowing money to prop up a scam on the point of collapse and which has already lost billions. What happened to the "expedited rice sales" to raise the necessary finance?

make up your mind please. either the rice was paid for and losses were already incurred or the rice is paid now causing losses. no such thing like "additional losses".

Maybe he had in mind the losses they made on the previous harvests they pledged, and the additional loss that will occur on the this seasons harvest which hadn't been paid for yet.

[JRSoul]

This has to be a Guinness record for stupidity - borrowing money to prop up a scam on the point of collapse and which has already lost billions. What happened to the "expedited rice sales" to raise the necessary finance?

make up your mind please. either the rice was paid for and losses were already incurred or the rice is paid now causing losses. no such thing like "additional losses".

Could you rephrase into something understandable? Where did I mention "additional losses" which will certainly occur if rice is continued to be purchased at above real value?

[MYKTHEMIN]

Where's my rubber fertiliser subsidy?

[Nibbles48]

Can someone please explain to me why the election commission has any authority whatsoever over the rice pledging scheme?

It doesn't. However, since an election has been called if the government wants to raise cash (or do anything that would impact the next government) it must get the approval of the electoral commission.

Basically, the government are not allowed to make 'extra-budgetary' moves while parliament is dissolved. Because they are normally subject to parliamentary procedure.

However, this type of request would normally be expected to be rejected unless the Election Commission is corrupted by outside influences. Mainly because it would almost certainly be seen as an exercise to gain votes with public funds.

This and a few other incidents over the past week or so has basically drawn a line under the fact that this Election Commission has been seriously tainted by Thaksin and the PTP which everyone knows anyway.

Another reminder that Suthep and the protesters are 100% correct about reform before elections and that this government and the entire Thaksin regime must go before there is an election they will support or accept.

If only the UN had a department where it can loan out an non-corruptible Election Commission to countries who have severe problems with fair elections it would be a godsend. Because if any country needed something like this, then Thailand would come at (or near) the top of the list.

Edited December 25, 2013 by Nibbles48

[Ricardo]

I suspect that the key phrase, in this announcement from the PDMO, is "will soon borrow", suggesting that they still don't actually have the cash to pass to the BAAC to pass-on to the patient farmers.

So not much change from a month ago, then.

Yay for Red Finance & 'White-Lies' !

[IMA_FARANG]

Pardon me for being ignorant ...... bur why and when does the Election Commission have the right or authority to approve such borrowing for that purpose?

For election expenses ..... such as the Feb 2nd election .... o.k. maybe.

But they should NOT be allowed to borrow money for the Rice pledging program.

That's NOT their area and they should (I think) have no authority there.

[EyesWideOpen]

The EC approving massive loans ?? This makes about as much sense as the dog catching department

starting to approve loans. The EC should be spending more time figuring out how to have elections

that are not bought and paid for by 500 baht notes...

I agree with the poster that said Amazing Thailand be changed to <deleted> Thailand .....

Edited December 25, 2013 by EyesWideOpen

[whybother]

You would have thought that the Yingluck government would have sorted this out before they dissolved parliament. It's not like this the shortage of money for paying the farmers wasn't known about then.

[tomacht8]

Now the Election Commission takes over the Treasury?
Is the EC for that qualified?
Something I've never heard of, that a Election Commission can release State loans or Investment budgets.
Guess their job is to organize free and fair Elections?

[DrTuner]

Aaand here come the taxes, somebody's got to pay the piper. In Thailands case it'll probably be VAT going up.

[Nickymaster]

The government has already borrowed 690,000,000,000 THB and have sold worth 200,000,000,000 THB worth of rice. So whatever is in the warehouses must be worth THB 490,000,000,000 right?????.

Why borrow more? Are they saying the can't sell ANY stock at all anymore?

And then Yingluck dares to say: "Please judge me on my performance". And then there are people that think Yingluck is doing a good job. The Shins have made a failed state out of Thailand. Well done!

I have learned a lot here in TV the last couple of years, especially about the posters.

[Scamper]

Incredible. With a stroke of a pen, Phue Thai has just bought the election. 38 billion baht - to ensure the northern vote. The continuation of a ruinous policy that increases the debt of the country exponentially each year, increases its burden on the GDP, and has thrown Thailand off its once held position as the world's top exporter of rice. Where's the transparency behind the EC's decision ? Why was this not aired before the public ? Why was this done behind closed doors ? What influences were exerted on the process ? 38 billion baht. Enacted behind closed doors. It's beyond words.

[kingalfred]

This government doesnt care if it screws and bankrupts the country to stay in power .Thailand truly is on a slippery slope

[zydeco]

Can someone please explain to me why the election commission has any authority whatsoever over the rice pledging scheme?

Seems utterly bizarre, doesn't it. I thought election commissions dealt with registering candidates, making sure nobody violated campaign funding laws and adhered to political electioneering laws. Afterwards, they certify elections and monitor appointments. Why the heck are they involved in borrowing money (and raising tax obligations) and running government programs. Here, it seems like anybody in a government building can start declaring whatever they want and make it official policy. This is anarchy.

[tingtongteesood]

Where's my rubber fertiliser subsidy?

All the rubber growers are in the south so by default must be Dem supporters so ipso facto the government doesn't give a rats ass about you. Meanwhile the PT crooks voters are the farmers in the north whom they are bending over backwards trying to borrow money to pay them in order to secure their votes again in a month and a bit after which they can go and screw themselves too I am sure...

[mudscrubber]

Incredible. With a stroke of a pen, Phue Thai has just bought the election. 38 billion baht - to ensure the northern vote. The continuation of a ruinous policy that increases the debt of the country exponentially each year, increases its burden on the GDP, and has thrown Thailand off its once held position as the world's top exporter of rice. Where's the transparency behind the EC's decision ? Why was this not aired before the public ? Why was this done behind closed doors ? What influences were exerted on the process ? 38 billion baht. Enacted behind closed doors. It's beyond words.

Whatever the merits or demerits of the government policy, it certainly does not increase the debt of the country exponentially each year (except in the trivial sense that any increase or decrease can be represented a fractional exponent). A mathematician names Johh Paulos coined the word "innumeracy" as an analog to "illiteracy". It seems to apply in this case.

[JRSoul]

Incredible. With a stroke of a pen, Phue Thai has just bought the election. 38 billion baht - to ensure the northern vote. The continuation of a ruinous policy that increases the debt of the country exponentially each year, increases its burden on the GDP, and has thrown Thailand off its once held position as the world's top exporter of rice. Where's the transparency behind the EC's decision ? Why was this not aired before the public ? Why was this done behind closed doors ? What influences were exerted on the process ? 38 billion baht. Enacted behind closed doors. It's beyond words.

Whatever the merits or demerits of the government policy, it certainly does not increase the debt of the country exponentially each year (except in the trivial sense that any increase or decrease can be represented a fractional exponent). A mathematician names Johh Paulos coined the word "innumeracy" as an analog to "illiteracy". It seems to apply in this case.

While I am unable to supply the equation involved, that the cost of the scheme increases each year due to the ever increasing amount in storage, its storage costs and degradation, and buyers unwillingness to purchase old rice, may well be a non-linear function of the stock held each year.

But there is little argument that costs are not increasing rapidly, and the whole mess is unsustainable.

[tomacht8]

No one knows how long this power struggle is still going on.

Would that then mean in inverse conclusion,
that the EC will in the future all the money burning schemes approve, receives state loans and funds release?

Who controls it? Who signs against?

“Hey we need 38 billion Baht (38.000.000.000) quick quick, please sign here and here, thanks.”

Today is Christmas, isn´t?

Edited December 25, 2013 by tomacht8

[smedly]

so the EC is now supporting a very obvious populist policy that helped PTP win the last election - anyone else see something fundamentally wrong with this

[mudscrubber]

Incredible. With a stroke of a pen, Phue Thai has just bought the election. 38 billion baht - to ensure the northern vote. The continuation of a ruinous policy that increases the debt of the country exponentially each year, increases its burden on the GDP, and has thrown Thailand off its once held position as the world's top exporter of rice. Where's the transparency behind the EC's decision ? Why was this not aired before the public ? Why was this done behind closed doors ? What influences were exerted on the process ? 38 billion baht. Enacted behind closed doors. It's beyond words.

Whatever the merits or demerits of the government policy, it certainly does not increase the debt of the country exponentially each year (except in the trivial sense that any increase or decrease can be represented a fractional exponent). A mathematician names Johh Paulos coined the word "innumeracy" as an analog to "illiteracy". It seems to apply in this case.

While I am unable to supply the equation involved, that the cost of the scheme increases each year due to the ever increasing amount in storage, its storage costs and degradation, and buyers unwillingness to purchase old rice, may well be a non-linear function of the stock held each year.

But there is little argument that costs are not increasing rapidly, and the whole mess is unsustainable.

As of 2012, the thai national debt was about 169 billion dollars.