Govt To Ask 33 Banks For Rice Money Loans

[Lite Beer]

Govt To Ask 33 Banks For Rice Money Loans

By Khaosod English

BANGKOK: -- The government will seek loans from 33 commercial banks in Thailand to pay debt incurred by the rice-pledging scheme, Finance Minister said.

Mr. Kittirat Na Ranong hopes the government will be able to raise 130 billion baht to pay rice farmers who participated in the controversial program.

The money is expected to be given to the Bank for Agriculture and Agricultural Co-Operatives (BAAC), the sole representative responsible for the payment, within this week to clear off debts the government owed to the farmers, Mr. Kittirat said.

According to Mr. Kittirat, the loan from commercial banks should allow the government to process the payment as soon as possible, which is a better option than releasing government bonds.

The Ministry will choose to borrow from the bank who offers lowest interest rates, he said.

However, he admitted that there are some difficulties for the plan, as anti-government protesters have previously marched to Krung Thai Bank and the Government Saving Bank and demand that the two banks refuse to lend money to the government, citing possible corruption.

Other banks are also skeptical whether the loan will be ruled illegal by the Constitutional Court later on, Mr. Kittirat noted, since the eligibility of the scheme has been extensively questioned by anti-government critics.

“We must admit that many commercial banks are worried about their image if they decided to lend the government some money for the scheme”, the Finance Minister complained.

However, Public Debt Management Office (PDMO) Advisor, Mr. Suwit Rojanavanich, remains positive about the plan, stating that many banks would welcome the borrowing from the government, and they are only concerned by the security and interests from the loan.

According to Mr. Suwit, lending the budget to BAAC, which is guaranteed by the Ministry of Finance, is "100% safe" and will allow the bank to secure their large sum of returns rather than looking for small borrowers.

Meanwhile, protests by farmers who demand rice money they had been promised under the program continue in various rice-growing provinces, such as Kampangpetch, Buriram and Ang thong.

In Kampangpetch, farmers from 11 districts submitted their documents to Mr. Adul Jankamjadphai, president of the provincial lawyer council, expressing their wish to sue the government, BAAC and other related authorities for failing to make the payment as promised.

In Buriram province, farmers in Lamplaimas district gathered yesterday in front of a polling station for advance voting and demanded that the voting be canceled.

The demonstrators also demanded the government to use the election budget to pay the farmers who mortgaged their rice under the scheme. Reportedly, over 50,000 farmers in the province are waiting for the money - a total of more than 4 billion baht.

In Ang Thong province, many farmers joined People′s Committee for Absolute Democracy With the King as Head of State (PCAD) protesters in the occupation of in-bound Asian Highway in Mueang district to demand the payment from the government.

Ang Thong governor, Mr. Pawin Chamniprasat, negotiated with the demonstrators and promised to urge the government to pay the farmers by 31 January. Satisfied by the promise, demonstrators then agreed to disband but threatened that if the government fails to keep their promise, they will protest again on 1 February.

Source: http://www.khaosod.co.th/en/view_newsonline.php?newsid=TVRNNU1EZ3lPVGswTnc9PQ==&sectionid=TURVd01BPT0=

-- Khaosod English 2014-01-27

[jackrich]

Oh boy, Suthep will be steaming tonight...

[blokker]

Government begging 33 banks for a loan.

Wow, makes a good impression.

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[englishoak]

Good business sense put it out to the competitive market...

I'm sure a lot will be whining but at least they are trying to get the farmers paid for what they have already sold on promise.

I see a lot of posters hating the idea of for some reason and have no idea why they would wish hardship on hard working farmers. They deserve to be paid in full asap imo.

[Pib]

Maybe we should just all donate our Thai bank accounts to the govt....help a struggling govt out--NOT!!!

[Eddy B]

If this is true then Thailand is in really deep crap. Rob from Peter to pay Paul? Where has the money gone from the countries treasury? Yingluck will need to be called forward and explain where it has all gone! This is not about reds or yellows but about the point that she has to account for the money that does not exist and where the hell did it go and more likely whos pockets it went into!

[mrtoad]

What a farce

[soi41]

The thieves out with the beggar-bowls, so they can continue stealing!!

Brilliant!!

[jackrich]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

[oldthaihand99]

"Govt To Ask 33 Banks For Rice Money Loans"

How about the Farmers bank (i.e. Kasikorn)?

[TallGuyJohninBKK]

If memory serves, quite a few of those banks have the Thai government Ministry of Finance as a partial shareholder... in some cases... a major shareholder.

Except this time, they wouldn't be playing with the government's money. They'd be playing with accountholders' money.

Interesting to see how this latest attempt pans out?

[tonyPhuket]

Is government really homeless now?

[Skywalker69]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

So, basically ..the farmers are not being paid thanks to Suthep.

So why haven´t the farmers been paid since Oktober? Why didn´t the PTP paid the money before they become a caretaker government? Simple, they have run out of money.

Edited January 27, 2014 by Skywalker69

[oldthaihand99]

Maybe we should just all donate our Thai bank accounts to the govt....help a struggling govt out--NOT!!!

Suthep doesn't like foreigners. Maybe he can arrange to "seize the assets" (all the 800K deposits) of retirees in LOS when he seizes YL assets. That might pay off a few farmers, eh?

This would be especially appropriate for the TV Suthep supporters.

[soi41]

Good business sense put it out to the competitive market...

I'm sure a lot will be whining but at least they are trying to get the farmers paid for what they have already sold on promise.

I see a lot of posters hating the idea of for some reason and have no idea why they would wish hardship on hard working farmers. They deserve to be paid in full asap imo.

Fair enough!! But not one word from Mr Kittirat about stopping the stupid scheme!!

So when the next crop is ready, out with the beggar-bowl again, wasting even more billions of taxpayer money, so Shinawatra familys ricetrading companies can get even richer!!

[robblok]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

So, basically ..the farmers are not being paid thanks to Suthep.

So why haven´t te farmers been paid since Oktober?

Come on don't ask that the reds haven't found a lie to cover that one yet.

[Misterwhisper]

If I were a commercial bank, I wouldn't even think twice about NOT to extend a loan to this government. It very clear that they're broke - or at the very least hopelessly insolvent. If they can't pay the farmers, the odds that they'll be able to repay my loan plus interest are very bad. Anyhow, what kind of collateral could they possibly offer as security? A luxury mansion in Dubai? Gold mining rights in Uganda? Chalerm's fully-stocked liquor cabinet? No, thanks, I'm not interested. Much too risky.

Edited January 27, 2014 by Misterwhisper

[Thait Spot]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

The farmers aren't being paid because the government couldn't even dissolve the house without thinking it through. How that buffoon Kittirat, the prize purveyor of porkie pies still has a job must be the 8th wonder of the world

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[JoeThePoster]

I think I just saw a govt bloke begging at Nana. Tried to tell me a sob story, something about no money for a plain rice back home.

[ChrisY1]

"However, he admitted that there are some difficulties for the plan,"

You want to believe there are some difficulties.....!

I don't think I've heard of a government borrowing from the banks ...ever before....maybe I'm wrong....but I sure wouldn't lend to them if I had a bank.....))

They're nuts....!

[heina]

Actually not that necessary to borrow money for thai gov. Thailand is a big US treasury bonds holder. More that 50 billions USD on that <deleted>. Uncle Sam might not be happy as well as american taxpayers.

[soi41]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

Why not blame Sutheps parents?? Had they not had sex and given birth to him, none of this would have happend!!

[Pib]

Maybe the govt will make the banks an offer they can't refuse...possibly preceded by each bank CEO waking up to find a severed buffalo's head in bed with them.

[lovetotravel]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

Actually, the payments have been due since October. Well before they became a "caretaker" government.

[Tatsujin]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

The rubbish that comes out of your mouth beggars belief sometimes.

If this Govt had enough money to pay they would NOT be seeking new loans. Simple. The money is not there due to corruption, theft and the basic fact that it was a stupid policy to begin with and was always going to lose money. Taxpayer money, mine included. What do you think part of what these protests have been about for the past few months?

They are a caretaker Govt and have no legal right to take out any further debt burden.

Robbing Peter to pay Paul helps no one at this point.

If they could be bothered with a compromise (which would be a first in the history of any Thaksin led Govt), they could have talked to the EC and the opposition and asked for their agreement to a temporary loan to cover these initial payments due.

[oldthaihand99]

The government has enough money. They just can't access it because the government is in "caretaker" mode due to the elections.

So, basically ..the farmers are not being paid thanks to Suthep.

So, basically ..the farmers are not being paid thanks to Suthep.

So why haven´t the farmers been paid since Oktober? Why didn´t the PTP paid the money before they become a caretaker government? Simple, they have run out of money.

I believe that some farmers have been paid.

Why not pay already? Maybe something to do with Suthep's crowd blocking sale of rice, etc?

Run out of money? You mean YL, the other ministers, army, police, etc, are working for free? The government has no billions & trillions allocated to things like flood control & infrastructure, that could be used to pay the farmers, apart from red tape & BS, etc, blocking them from doing so?

[ratcatcher]

[MaxLee]

Govt To Ask 33 Banks For Rice Money Loans

As low as it gets....

If I were the chief of a bank, I would say: "Grow the hell up, Mr. White liar liar!!!!"

[thesetat2013]

Hell im planning to take all my money out if thay happenS. Better i do it now than to go to atm machine abd find they dont have my money to give to me. Besides, i thought it was illegal for a caretaker gov to sign for a loan?

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[englishoak]

Good business sense put it out to the competitive market...

I'm sure a lot will be whining but at least they are trying to get the farmers paid for what they have already sold on promise.

I see a lot of posters hating the idea of for some reason and have no idea why they would wish hardship on hard working farmers. They deserve to be paid in full asap imo.

Fair enough!! But not one word from Mr Kittirat about stopping the stupid scheme!!

So when the next crop is ready, out with the beggar-bowl again, wasting even more billions of taxpayer money, so Shinawatra familys ricetrading companies can get even richer!!

Its a ridiculously stupid scheme agreed but.................the farmers need to be paid, the protesters wont take part in an election and blocking one from taking place ... thereby stopping all funding to pay the farmers and actually forcing them into even more problems.

Im sorry but personally i couldnt care if they bankrupt the country to pay the farmers, it will go to thais and the people at least. they can commit political suicide if they wish but the farmers should be paid asap and the unrest is stopping that happening.

PS the thai banks arnt the only options if its commercial i see no reason why they cant ask any bank including international... HSBC or even JP Morgan god forbid lol

Edited January 27, 2014 by englishoak