Govt To Ask 33 Banks For Rice Money Loans

[daboyz1]

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.

They were too busy planning Amnesty for their master in Dubai to be worrying about silly farmers.

Edited January 28, 2014 by daboyz1

[kingalfred]

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.

paid by who?, most of the 33 are going to say mai ow, and the "caretaker"government are going to offer high interest .Really shows the incompetence of this shabby corrupt government and it's pathetic PM

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[Ricardo]

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.

Suthep called the elections ?

[GentlemanJim]

This cannot work on at least 2 counts (and I am sure there will be many more, it's just I have devoted as much thinking time to it as the Government has....zero)

Firstly, from everything that has so far been reported about why the Government have backed down from other ways of financing this current disaster it is clearly illegal to burden the 'next' Government with secured Bank loans.

Secondly this is a really unwise move for Thailand. The country is so politically charged that any banks that decide to offer these loans will find that 50% of their customers nationwide (assuming that the customer base is representative of the population) will be drawing their money out of them, and the banks concerned will go bust.

The 'loans' of this magnitude would also create a nation wide shortage of debt available to the normal house holder and businessman. In short it would hasten the sliding down the toilet tube of this nation as the real people that need the money that the banks have are the citizens and businesses.

[Piichai]

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.

The farmers are indeed borrowing against that "asset," but as the banks refuse to honor the paper as collateral, the poor farmers are forced to seek money from loansharks to survive.

The banks refusing to honor the paper as collateral, should be telling you that the banks believe the "asset" is worthless. There might be a good reason for that.

But on top of all that, what on earth makes the Red sympathizers think it's okay for poor farmers to be forced to pay interest on money that's been owed them by the government since at least October?

[ramrod711]

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.

What a load of crap

[Barney R]

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.

You really have no idea . It pays to no facts before you sprout rubbish . But as the saying goes empty vessels make the most noise .

[ramrod711]

“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.

The absolute understatement of the year so far, and the most honest statement i've ever heard from the white liar.

[Piichai]

And the answer is NO!!!!!!!!! Totally insane. And later you wonder why politicians are so disrespected in Thailand. They must know what they do is bad. Just return those greedy farmers their rice. This is acceptable. There must be a lesson in it for the farmers too!

Greedy farmers, that's a bit harsh isn't it? Don't they simply want to get paid for their rice that the government is holding?

Well, to be honest, it's not *that* harsh. It's not hard to imagine the farmers giddy with excitement at the thought of receiving double the going rate for their product. And all they had to do was vote for PTP.

[scorecard]

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

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"Destroy the government's image"

Is that an attempt at humor?

[allan michaud]

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 fact is, as Mr White Lies admitted, they have not made much money back when selling the rice so the coffers were empty when they were due to pay up. It is very clear they intended to fund this round from the 2.2billion loan. Initially it was the govt's mistake that caused this but now the continuing delays are down to Suthep and co. I want to see the farmers paid NOW as many are suffering terribly for these political games being played by both sides.

Simple math. White lies stated a couple of weeks back they spent 701billion on 50 million tons over 3 years. They had apparently sold 40 million (He actually said they only had 10 million tons left) but had only recouped 180billion. The govt knew well ahead of October that they would need 150billion+ to pay out for this seasons crop so it has no excuse and cannot blame a'hole Suthep and protests that started a couple of months later.

[Piichai]

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...

Banks (even in Thailand) have a fiduciary responsibility to their customers and shareholders to manage risk.

By not accepting the farmers' receipts as collateral, the banks are saying the receipts are worthless.

It's pretty obvious that the banks don't have much faith in the current government.

[mrtoad]

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.

What a load of crap

Yep, like all of his apologist posts.

[Crushdepth]

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.

Really? So why didn't they pay the farmers in the four months before they dissolved the house?

Wake up man, you need a dose of reality.

[mrtoad]

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

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"Destroy the government's image"

Is that an attempt at humor?

Well they do have an image, but it's not one that's going to be destroyed by these protests.

[Piichai]

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

The government is doing a pretty good job of destroying their image on their own!

[mrtoad]

This cannot work on at least 2 counts (and I am sure there will be many more, it's just I have devoted as much thinking time to it as the Government has....zero)

Firstly, from everything that has so far been reported about why the Government have backed down from other ways of financing this current disaster it is clearly illegal to burden the 'next' Government with secured Bank loans.

Secondly this is a really unwise move for Thailand. The country is so politically charged that any banks that decide to offer these loans will find that 50% of their customers nationwide (assuming that the customer base is representative of the population) will be drawing their money out of them, and the banks concerned will go bust.

The 'loans' of this magnitude would also create a nation wide shortage of debt available to the normal house holder and businessman. In short it would hasten the sliding down the toilet tube of this nation as the real people that need the money that the banks have are the citizens and businesses.

I think this is fairly accurate statement. If my Bank decides to loan to these criminals, my money is out straight away. That might not be a big hit, but masses of people will do the same. I look forward to YS and her clowns answering some tough questions in court regarding their plunder of the country, although if they are anything like their square headed fugitive master they'll do a runner quite soon.

[saltandpepper]

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.

And you really believe this?

How long have the farmers not been paid again?

[Mosha]

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.

Don't let the facts get in the way of you continually repeating this falsehood.

[scorecard]

This cannot work on at least 2 counts (and I am sure there will be many more, it's just I have devoted as much thinking time to it as the Government has....zero)

Firstly, from everything that has so far been reported about why the Government have backed down from other ways of financing this current disaster it is clearly illegal to burden the 'next' Government with secured Bank loans.

Secondly this is a really unwise move for Thailand. The country is so politically charged that any banks that decide to offer these loans will find that 50% of their customers nationwide (assuming that the customer base is representative of the population) will be drawing their money out of them, and the banks concerned will go bust.

The 'loans' of this magnitude would also create a nation wide shortage of debt available to the normal house holder and businessman. In short it would hasten the sliding down the toilet tube of this nation as the real people that need the money that the banks have are the citizens and businesses.

And:

- Foreign investors /local companies would very likely avoid such banks in the future because they have some doubts whether the bank might use the funds they are holding on foreigner investors / any investors / banking customers behalf for purposes that are well outside the professionals borders that one might expect of a professional banking institute.

- International / local ratings agencies would quite likely downgrade the ratings of such banks and downgrade Thailand.

[gabruce]

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 confusing part is that the farmers have been waiting for up to 6 months, so if the government has enough money why didn't they pay before dissolving the house? I think it's because they didn't have enough money then and they had hoped to have the out of budget (off the books) 2.2 trillion infrastructure loan approved, then they could use that borrowed money to pay for the rice (and continue paying for it until it too was gone - a little cynical perhaps). If they have enough money now, why borrow now?

[Old Man River]

Now let's see - 33 banks in Thailand. There are 16 Thai commercial and retail banks and 15 foreign banks, most of which have only one branch. That makes 31 commercial and retail banks in Thailand, some of which are tiny or only do very specialized business in the case of most of the foreign banks. That means the two other banks are probably fully state owned banks such as the Government Savings Bank and Bank for Agriculture and Agricultural Cooperatives that have already been approached. There is also the Government Housing Bank and Exim Bank, not to mention the SME Bank that is already techincally insolvent due to fraudulent lending.

All the private sector banks are subject to capital adequacy limits and most are also listed companies, either in Thailand or in their home countries in the case of the foreign branches. If they lend money under a questionable government guarantee that may be voided by a court later, that has implications for their capital adequacy ratios that could cost them money, not to mention the reputable risk of getting involved in the funding of a scheme that is being investigated for fraud.

I would say this is not going to be a slam dunk for Kittirat and I wonder why he would mention 33 banks, knowing the majority are too small to consider it, even if they wanted to, and that foreign banks can't get involved in political stuff like this. Good luck to him.

While I agree with you on premise, foreign banks have local risk thresholds and expected rates of return. They don't concern themselves with politics, only risk and return. As they are looking at MOF risk and as these are supposed to be short term loans, some may be interested.

Banks that under BOT auspices are required to pay for depositor insurance. Therefore, depositors are insured up to THB 50million per depositor per bank. Union heads have been fearful of their depositors money that are not under the BOT insurance program, which is apparently the case for the BAAC, GHB, GSB, and GPF.

Krung Thai Bank is a large government bank whose depositors are under the BOT insurance . Hence, there should be no issues from the unions about depositor risk, nor about MOF risk since it is owned by the government. Only KTB, as far as I understand, is government owned and their depositors have private depositor insurance. This aside, it will depend on their capital adequacy position, which is public knowledge, but I haven't looked at. If it rates well,the funds may well be available.

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Edited January 28, 2014 by Old Man River

[slapout]

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.

This has to be nominated for the uninformed pro Shinawat government statement of the year. The fuel tax fund has been raided, government tax revenue is not being accounted for, has dropped and this drop is being blamed on anything but corruption, the rice scam which was promoted as "self substaining" is broke, corrupt, and on top of that, looted by those involved.

To attempt to blame Suthep, or anyone other than those involved in the populist programs of this government, from the PM down to those useing the system for their personal gain, which has been partially financed from what few tax baht are collected, is a insult to the intelligence of the members/guests of TV.

[AleG]

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.

Indeed they have screwed them good and proper.

I've said it before, the farmers should come down to Bangkok with signs saying "Respect your voters"

[islandguy]

Two trilllion baht would have hidden the money trail for a long time......

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.

[shaurene]

It was a doom from the beginning, PM's Brother's big ideas. He forgot to tell her where the money would come from.

Thailand is just like a lot of the Asian, African countries, they fiddle so much that they forget they have to some way put it back in the purse.

They do not know a country has to be run like a business and make a profit.

[jocko]

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.

O yes he does he wrote a personal letter to his friend Barack.

[theslime]

Now let's see - 33 banks in Thailand. There are 16 Thai commercial and retail banks and 15 foreign banks, most of which have only one branch. That makes 31 commercial and retail banks in Thailand, some of which are tiny or only do very specialized business in the case of most of the foreign banks. That means the two other banks are probably fully state owned banks such as the Government Savings Bank and Bank for Agriculture and Agricultural Cooperatives that have already been approached. There is also the Government Housing Bank and Exim Bank, not to mention the SME Bank that is already techincally insolvent due to fraudulent lending.

All the private sector banks are subject to capital adequacy limits and most are also listed companies, either in Thailand or in their home countries in the case of the foreign branches. If they lend money under a questionable government guarantee that may be voided by a court later, that has implications for their capital adequacy ratios that could cost them money, not to mention the reputable risk of getting involved in the funding of a scheme that is being investigated for fraud.

I would say this is not going to be a slam dunk for Kittirat and I wonder why he would mention 33 banks, knowing the majority are too small to consider it, even if they wanted to, and that foreign banks can't get involved in political stuff like this. Good luck to him.

While I agree with you on premise, foreign banks have local risk thresholds and expected rates of return. They don't concern themselves with politics, only risk and return. As they are looking at MOF risk and as these are supposed to be short term loans, some may be interested.

Banks that under BOT auspices are required to pay for depositor insurance. Therefore, depositors are insured up to THB 50million per depositor per bank. Union heads have been fearful of their depositors money that are not under the BOT insurance program, which is apparently the case for the BAAC, GHB, GSB, and GPF.

Krung Thai Bank is a large government bank whose depositors are under the BOT insurance . Hence, there should be no issues from the unions about depositor risk, nor about MOF risk since it is owned by the government. Only KTB, as far as I understand, is government owned and their depositors have private depositor insurance. This aside, it will depend on their capital adequacy position, which is public knowledge, but I haven't looked at. If it rates well,the funds may well be available.

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Pretty sure BAAC is half owned by Thai Airforce, and the Government owning the other half.

[Arkady]

Now let's see - 33 banks in Thailand. There are 16 Thai commercial and retail banks and 15 foreign banks, most of which have only one branch. That makes 31 commercial and retail banks in Thailand, some of which are tiny or only do very specialized business in the case of most of the foreign banks. That means the two other banks are probably fully state owned banks such as the Government Savings Bank and Bank for Agriculture and Agricultural Cooperatives that have already been approached. There is also the Government Housing Bank and Exim Bank, not to mention the SME Bank that is already techincally insolvent due to fraudulent lending.

All the private sector banks are subject to capital adequacy limits and most are also listed companies, either in Thailand or in their home countries in the case of the foreign branches. If they lend money under a questionable government guarantee that may be voided by a court later, that has implications for their capital adequacy ratios that could cost them money, not to mention the reputable risk of getting involved in the funding of a scheme that is being investigated for fraud.

I would say this is not going to be a slam dunk for Kittirat and I wonder why he would mention 33 banks, knowing the majority are too small to consider it, even if they wanted to, and that foreign banks can't get involved in political stuff like this. Good luck to him.

While I agree with you on premise, foreign banks have local risk thresholds and expected rates of return. They don't concern themselves with politics, only risk and return. As they are looking at MOF risk and as these are supposed to be short term loans, some may be interested.

Banks that under BOT auspices are required to pay for depositor insurance. Therefore, depositors are insured up to THB 50million per depositor per bank. Union heads have been fearful of their depositors money that are not under the BOT insurance program, which is apparently the case for the BAAC, GHB, GSB, and GPF.

Krung Thai Bank is a large government bank whose depositors are under the BOT insurance . Hence, there should be no issues from the unions about depositor risk, nor about MOF risk since it is owned by the government. Only KTB, as far as I understand, is government owned and their depositors have private depositor insurance. This aside, it will depend on their capital adequacy position, which is public knowledge, but I haven't looked at. If it rates well,the funds may well be available.

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Foreign banks don't want to get involved with political hot potatoes.

These can easily be blown up by activist groups that stalk AGMs in their home countries. So most avoid anything vaguely political.BAAC, GSB et al are not regulated by BOT. KTB is not wholly owned by government. It is public listed company with many minority shareholders. It has often been subjected to political pressure in the past but directors have same liability to all shareholders as other listed banks. I don't think KTB wants to go back to its dark age of being regarded as a piggy bank for corrupt politicians after so many years hard work improving its corporate governance ratings with local and foreign investors.

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[animatic]

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.

They were too busy planning Amnesty for their master in Dubai to be worrying about silly farmers.

And the fact they didn't have the money then... still don't,

they are attempting to take a second mortgage on over priced stock to pay what they owe for accepting it and not being able to move it. Apparently too stupid to flog off enough an any market viable price to pay the cost of purchases, and then worry about making up the loss later...

A Ponzi scheme at best, but in government they call it subsidies.