Govt To Ask 33 Banks For Rice Money Loans

[Arkady]

The anti government protesters will soon run out of idea to destroy the government's image!

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This one is entirely the government's own doing without any help from the protestors or anyone else. They over extended themselves as a result of failing to export rice to generate cash flow and withheld from the economy payments equivalent to 10% of the entire output of the agricultural sector, also taking 10% of the monetary base out of circulation. That took some doing and can't be blamed on anyone else.

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[Thaddeus]

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.

I'll ignore the first line.

I seriously doubt that most of the posters on TV would wish the farmers any hardship, I would expect that most would like the farmers and their children to get a half decent education, including basic economics.

[longway]

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.

Yes this loan is very fishy, it was not long ago that the PT had said gthey had allocated a 180 billion baht budget of which they had provided the BAAC 150 billion from rices sales. Which meant they were 'only' 30 billion short for this year's harvest. Now suddenly the shortfall has become 130 billion. Whats going on here?

[mrtoad]

The Red Shirt sympathizes are now suggesting that posters who are supporting the end of the rice scheme are against farmers. PTP have screwed the farmers over. Total BS, this was a scam right from the start, and the figures were never going to add up. YS and her cronies have been caught with their hands in the cookie jar, either way this mess won't be going away, and hopefully the courts will be imposing heavy jail sentences on those involved. Ignorance is not a valid defense, so YS as the chairperson is up to her neck in rotting rice. A flight to Dubai must be mighty tempting at this point. Whatever people think of Suthep, he is paying his hand well. PTPs arrogance and disregard for financial accountability will be their downfall.

[aimbc]

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

Call it tough love. They believe in the pot of gold. How else will people learn to be good citizens and study the issues before they vote. You can bet that they will now. They got scammed by the govt., so let's audit the govt program, I will bet the pot of gold is in someone's pocket. Don't take any more from the taxpayers money to pay for the criminal acts. Arrest the criminal and seize all their assets to pay the farmers. YS has a lot I am sure.

Let's get serious, let's not forget the other millions of farmers that did not qualify for the rice scheme because they could not grow enough to take advantage of the program. There are also a lot of them didn't believe the government would be able to deliver something impossible, so they never participated. And these are the very people that needs the help the most. Most of these farmers participating in the scheme are well off. And I will bet, they got their money already. The left overs are the pawns that was scarified by the govt. These were the group that needed assistance the most and what the entire rice scheme was based on. But the official got their money. Now going back to the other more than 50% of rice farmers that could not participate in the rice scheme, they are not protesting? How are they surviving. Where they stupid not to participate? I will bet the money already got drained the very first year when then had no cap on the rice.

We definitely have to help the farmers, but not until a full audit is done on the program. If we don't fully understand the problem, then borrowing more money will turn out the same result. Short! I am sure you have been following the news, every time they talk about a loan, the numbers keep changing. This is one of the many reasons why this government is a sham and illegitimate. And they have no right to govern any longer. But yet they want to hold on to the power. After all the wrong doing they have done. Oh, I hope they audit the tablet also, because so far 800,000 tablets have not been delivered. At a cost of 4,000+ each, that ain't no chum change. And for the quality, it's way over priced, again nothing is transparent. So many things wrong. Step down YS

[NeverSure]

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.

Thailand has to hold US dollars for international trade. If it spends it, it's out of business. The US is Thailand's biggest trading partner. It holds those dollars in bonds, just as China does because the US is also China's biggest trading partner.

[Basil B]

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.

Yes this loan is very fishy, it was not long ago that the PT had said gthey had allocated a 180 billion baht budget of which they had provided the BAAC 150 billion from rices sales. Which meant they were 'only' 30 billion short for this year's harvest. Now suddenly the shortfall has become 130 billion. Whats going on here?

100 billion =3.125 Billion USD

$3.125bn = 31.25m $100bills

$100 Bill = 1 gram

31,250,000 Grams = 31.25 metric tonnes (34.5 us/short ton)

That a hell of a lot of excess baggage going to Dubai.

[aimbc]

Which ever bank it is that is going to risk loaning the money, better have some heavy liquidity. With 130Billion taken out, that will leave very little to protect themselves from a "Bank Run"

[smedly]

so these banks are supported by account holders who keep their savings in the banks - that is how the bank is able to function

so if you asked the account holders/depositors if they would support a government loan to the tune of $6bn - I'd be at the bank tomorrow morning closing my account and taking my money home

and all of this because they couldn't secure the 2x trillion baht off budget loan for ....ahem infrastructure - just unbelievable - the sorry thing is - PTP would most likely get away with this sort of scandal with the poor in the Northern regions, but with social networking and more tuned in people spreading the word and educating - it is now no longer so easy to fool the masses

Edited January 27, 2014 by smedly

[brownbear]

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.

IQ 15..., at most!

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You are so generous!

[noitom]

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.

It's a good move. It is an indication that the government puts ordinary Thai farmers first.

[smedly]

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.

please give us all a breakdown of government accounts since you seem to know all about it

I will predict you will not answer my question

waiting

waiting

[oldthaihand99]

For those TV poster that don't have an understanding of the rice scheme. Many of you may not know that the quality of rice is, how should I say, substandard. When the govt proposed the rice deal, many farmers were geared on getting the highest yield, so a lot of them use excessive amount of pesticides, because quality was no longer important to them. Just quantity.

So, bottom line, karma has come back to bite the farmers in the ass, eh?

Next topic?

Edited January 27, 2014 by oldthaihand99

[smedly]

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.

funny you should mention that - with the recent changes to visa applications in the west for Type O and the difficulty obtaining such a visa - a very astute friend of mine said the reason was to encourage falangs to move money into thai banks - I believe him

I had 20k sterling in my UK bank account which met the requirements and I was still turned down - advised to move money to Thailand and obtain a retirement visa - never will I have that sort of money in a Thai bank account - I told them to stick it

[marstons]

No bank in their right mind is going to loan this administration a dime, unless it can secure it against assets. These criminals will sell out the country to line their own pockets.

Absolute BOCs

If I'm owed 50,000 baht by the government, I have an asset worth 50,000 baht that has the same quality as any other government debt. So a farmer can simply borrow against his givernment debt, no different than borrowing against a government bond.

But the figures don't add up, but the debts are mounting.

Tis nothing but plunder. Arrrrgghh.

And? The farmers are so far borrowing zero against this asset. They should be able to borrow against the full value of this asset.

As to whether Thailand is downing in debt, no it isn't:

UK Debt / GDP is 91%

Germany 82%

Thailand 45%

Thailand can well afford to pump money into the economy. It's going to have to just to recover from Suthep damage, but probably should spend on infrastructure anyway.

seems they are not that well of now, and may well default on there debt

http://www.bloomberg.com/news/2014-01-19/thai-default-risk-soars-as-funds-pull-4-billion-southeast-asia.html

The risk of Thailand defaulting on its debt rose to the highest since June 2012 as anti-government protests prompt money managers to sell the nation’s assets.

[smedly]

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

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

you made me nearly bust a lung laughing at that one - to funny

[JRSoul]

Right, this is not about reds and yellows... as if!

She replaces a farm subsidy with a rice program. Government gets a rice reserve, the farmers still get their money. The dems and their cronies block all the financing for it, pretend its bankrupting the country, pretend its all corrupt and a scam and use it as an excuse to try to seize power. The usual political blah blah blah of propaganda.

Sounds like the 30 baht healthcare again?

Thaksin put the 30 baht healthcare scheme, the Democrats screamed it was bankrupting hospitals. They have hospitals close their doors to block the scheme, "it is such a catastrophy" they scream! "He's buying poor people votes by bankrupting the hospitals!" Neglecting to mention the 1500 baht per person the government pays for each person in the catchment area.

Then once the coup takes power, the Generals drop the 30 baht charge, and adjust the 1500 to 1800 baht, keeping the scheme intact because it made sense.

When the Democrats get into power by their usual dodgy route, they keep the scheme too, because its good, and popular and the hospitals get most of their income from it and don't want to lose it.

Then Yingluk gets into power, puts back in the 30 baht/visit charge to prevent timewasters using hospital resources needlessly, and now the Democrats pretend the 30 baht scheme was theirs and they oppose the increase in 30 baht! Yet only a few years ago, Democrats were trying to block the whole scheme because it was a disaster that would bankrupt the hospitals!

Well good for you and your lying politicians. Good to see they have you fooled and everyone has such a short memory. It's a pity alzheimers doesn't have a cure because now you can afford to go to hospital to get it treated!

The farmers grow your rice, and the next crop needs fertilizer that is expensive and needs to be paid for. So if the banks will lend the famers money, either directly or indirectly, against their unpaid rice sales, then they get to grow the rice and Thailand gets to eat.

When the yellows stop their scummy political games, the rice pledge scheme will no doubt need tweaking. It's created a bigger rice reserve than is needed, and the shortages in the world have eased and the sale price dropped. Well so what! It will get tweaked, but not by you Dems, because you took yourselves outside of democracy.

Thaksin installed the B30 scheme without sufficient funding, that's why the hospitals were running out of money, and why the funding was increased. The B30 levy cost more than B30 to administer, that's why it was dropped, and it was re-instated because that was Thaksin's plan, no one else allowed to claim input.

try reading more than the red rags, you will learn much more.

[oldthaihand99]

Right, this is not about reds and yellows... as if!

She replaces a farm subsidy with a rice program. Government gets a rice reserve, the farmers still get their money. The dems and their cronies block all the financing for it, pretend its bankrupting the country, pretend its all corrupt and a scam and use it as an excuse to try to seize power. The usual political blah blah blah of propaganda.

Sounds like the 30 baht healthcare again?

Thaksin put the 30 baht healthcare scheme, the Democrats screamed it was bankrupting hospitals. They have hospitals close their doors to block the scheme, "it is such a catastrophy" they scream! "He's buying poor people votes by bankrupting the hospitals!" Neglecting to mention the 1500 baht per person the government pays for each person in the catchment area.

Then once the coup takes power, the Generals drop the 30 baht charge, and adjust the 1500 to 1800 baht, keeping the scheme intact because it made sense.

When the Democrats get into power by their usual dodgy route, they keep the scheme too, because its good, and popular and the hospitals get most of their income from it and don't want to lose it.

Then Yingluk gets into power, puts back in the 30 baht/visit charge to prevent timewasters using hospital resources needlessly, and now the Democrats pretend the 30 baht scheme was theirs and they oppose the increase in 30 baht! Yet only a few years ago, Democrats were trying to block the whole scheme because it was a disaster that would bankrupt the hospitals!

Well good for you and your lying politicians. Good to see they have you fooled and everyone has such a short memory. It's a pity alzheimers doesn't have a cure because now you can afford to go to hospital to get it treated!

The farmers grow your rice, and the next crop needs fertilizer that is expensive and needs to be paid for. So if the banks will lend the famers money, either directly or indirectly, against their unpaid rice sales, then they get to grow the rice and Thailand gets to eat.

When the yellows stop their scummy political games, the rice pledge scheme will no doubt need tweaking. It's created a bigger rice reserve than is needed, and the shortages in the world have eased and the sale price dropped. Well so what! It will get tweaked, but not by you Dems, because you took yourselves outside of democracy.

Thaksin installed the B30 scheme without sufficient funding, that's why the hospitals were running out of money, and why the funding was increased. The B30 levy cost more than B30 to administer, that's why it was dropped, and it was re-instated because that was Thaksin's plan, no one else allowed to claim input.

try reading more than the red rags, you will learn much more.

All you will "learn" is more opinions, which are always biased, and a fraction of the facts, at best.

[JRSoul]

Thaksin installed the B30 scheme without sufficient funding, that's why the hospitals were running out of money, and why the funding was increased. The B30 levy cost more than B30 to administer, that's why it was dropped, and it was re-instated because that was Thaksin's plan, no one else allowed to claim input.

try reading more than the red rags, you will learn much more.

All you will "learn" is more opinions, which are always biased, and a fraction of the facts, at best.

If you intimating that anything in that post was incorrect, please fell free to correct me.

[Sayonarax]

The outsiders are full of wisdom as always..

[a99az]

In the circumstances I'm not sure if this would be legal!

[Thai at Heart]

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.

then why does the government need to make the loan first. why doesnt the bank just GIVE the money directly to the farmers. .and the "government" tab it. .. HEEEELLLOOOOO everyone...

Because they can't just tab it. Its a bank. Its a functioning business with deposits. There is a limit to how much it can give out.

Now it needs more cash from the govt, but this injection wasn't budgeted because they were too busy claiming that the thing wasn't loss making.

[Bluespunk]

Sutheps not responsible for the mess, this car crash of a government has been predicted way before Suthep bought people out onto the streets.

Yes he is, he started his attacks 4th November, he scuppered the 16th November bond issue. So yes, the government were simply going to issue a bond for the shortfall, drop the buy/sell price and tweak the program, and he ensured it was scuppered. Along with all the infrastructure projects.

Did they overpay for the rice? Yep in hindsight. What the price of gold / rice / oil / everything in 6 months time? If Suthep had a crystal ball he's know, he doesn't. He just whines about everything in hindsight.

In hindsight? It was clear from the start that the rice scheme was criminally inept and going to fail.

[Bluespunk]

If it can afford to pump money into the economy why doesn't it pay for the rice it was supposed to pay for in October?

In case you didn't know it that was before Suthep and before Yingluck dissolved the house to fool people like you.

Out of curiosity do you believe this nonsense you post or are you just trolling?

Because the bond issue was scuppered, and it can't pay the farmers now during an election without the EC screaming 'vote buying'. Refer to comments higher up for timings and details.

"Out of curiosity do you believe this nonsense you post or are you just trolling?"

I find when people resort to insults it's a sign they lost.

Again wrong. The EC said it was the govts decision in the bond issue, but if later was proved illegal it was PT who would be held responsible.

[Skywalker69]

so these banks are supported by account holders who keep their savings in the banks - that is how the bank is able to function

so if you asked the account holders/depositors if they would support a government loan to the tune of $6bn - I'd be at the bank tomorrow morning closing my account and taking my money home

and all of this because they couldn't secure the 2x trillion baht off budget loan for ....ahem infrastructure - just unbelievable - the sorry thing is - PTP would most likely get away with this sort of scandal with the poor in the Northern regions, but with social networking and more tuned in people spreading the word and educating - it is now no longer so easy to fool the masses

I'd be at the bank tomorrow morning closing my account and taking my money home

I bet you a cold beer that you wont be the only one.

[theslime]

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 you have it all wrong, the Rice scheme is a lie, the money allocated has disappeared into the Richest Pockets.The Government cannot finance large costs as they are in Caretaker mode. If you really really want to blame somebody, try the Finnace or Treasury Ministers or Thaksin,s Grannies.

[fifthcolumn]

Is government debt now so much worse than in the past?

<iframe src='http://www.tradingeconomics.com/iframe/chart.aspx?url=/thailand/government-debt-to-gdp' height='350' width='700' frameborder='0' scrolling='no'></iframe><br />Source: <a href='http://www.tradingeconomics.com/thailand/government-debt-to-gdp' target='_blank'>tradingeconomics.com</a><br />

To get a better view, set the start date on the graph to 1997.

No it isn't.

UK Debt / GDP is 91%

Germany 82%

Thailand 45%

Lower is better.

Lower is better, but debt is all about the ability to service it first and foremost.

We all know Germany is a far better bet here despite Thailsnd's debt according to this chart is half. Then there are the unknowns, the future. Germany is solid and predictable. Thailand, especially if this things blows up will start looking like a venal cleptocracy without a future. If Bangkok burns again, the Japanese will go.

[Robby nz]

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.

Surely if the loans are guaranteed by he ministry of finance that is putting an obligation on future governments......................something they are not allowed to do.

[tsnyder]

Sutheps not responsible for the mess, this car crash of a government has been predicted way before Suthep bought people out onto the streets.

Yes he is, he started his attacks 4th November, he scuppered the 16th November bond issue. So yes, the government were simply going to issue a bond for the shortfall, drop the buy/sell price and tweak the program, and he ensured it was scuppered. Along with all the infrastructure projects.

Did they overpay for the rice? Yep in hindsight. What the price of gold / rice / oil / everything in 6 months time? If Suthep had a crystal ball he's know, he doesn't. He just whines about everything in hindsight.

In hindsight? It was clear from the start that the rice scheme was criminally inept and going to fail.

You have to understand the difficulty that the Thaksin apologists have in trying to divert attention away and feeble derailing attempts by blaming anyone and everything in their desperation to explain away the long-standing scam.

.

[tonytigerbkk]

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.

By making a ludicrous statement that you know to be wrong with the only purpose to stoke a fire is known as trolling.

Every one of your posts that I have seen has this quality.

Please read the rules of Thai Visa before you try to stir up a hornets nest next time.

5) Not to post inflammatory messages on the forum, or attempt to disrupt discussions to upset its participants, or trolling.Trolling can be defined as the act of purposefully antagonizing other people on the internet by posting controversial, inflammatory, irrelevant or off-topic messages with the primary intent of provoking other users into an emotional response or to generally disrupt normal on-topic discussion.