Govt to seek bank loans to pay out rice farmers

[webfact]

RICE-PLEDGING SCHEME
Govt to seek bank loans to pay out rice farmers
Supunnee Putpisut,
Nakarin Srilert
The Nation



Commercial banks to be tapped after state banks' unions balk at lending

BANGKOK: -- THE Finance Ministry will today invite 32 commercial banks to tender loan conditions so that the government can raise the funds needed to pay out farmers who sold rice to the pledging scheme, a source at the ministry disclosed yesterday. About Bt130 billion is allegedly required but no figure was given for the total amount that will be sought today.

Lately, state banks' labour unions have opposed to lending money to the scheme, which has huge debts. The chairpersons of banks' labour unions met yesterday to discuss on how to fend off any move to use the banks' deposits for the scheme. The state banks include the Bank for Agriculture and Agricultural Cooperatives (BAAC), EXIM Bank, the Government Savings Bank (GSB), Government Housing Bank (GHB), and SME Bank.

Labour organisations, meanwhile, called on the Social Security Office's chairman Jeerasak Sukhontachart and secretary general Ammorn Chaovalit to demand that they never allow the Social Security Fund to grant loans to the rice-pledging scheme.

The scheme has incurred massive financial losses in recent years partly because it is unable to sell rice at a price higher than the Bt15,000-per-tonne rate that it promised to participating farmers.

The scheme is also reportedly mired with corruption.

The government is struggling to secure loans for the scheme to pay money owed to about 1.4 million farmers. Thousands of farmers have already taken to the streets to air their grievances over the delay in payments.

Deputy Prime Minister and Finance Minister Kittiratt Na Ranong, his deputies Tanusak Lekuthai and Benja Louicharoen, and Council of State secretary general Chukiat Rattanachaicha discussed the scheme yesterday but refused to give any interview.

Deputy Commerce Minister Yanyong Phuangrach said the government was in the process of facilitating payments to farmers via the BAAC.

"But I don't know about the loan procedures," he said.

He blamed anti-government demonstrators for trying to threaten state-owned banks against approving loans for the scheme.

Likit Klinthanom, who chairs the GSB labour union, said he viewed the scheme with suspicion because the BAAC, which was directly in charge of the scheme, now refused to give loans for it.

In related news, the National Anti-Corruption Commission (NACC) resolves yesterday to combine two related cases against caretaker Prime Minister Yingluck Shinawatra about the rice-pledging scheme into its probe.

The first accuses Yingluck of dereliction of duty over the scheme. The other, filed by Democrat MPs via the Senate president, seeks to impeach Yingluck over the scheme.

NACC commissioners Prasart Pongsivapai and Wicha Mahakun will be in charge of the probe.


-- The Nation 2014-01-29

[noitom]

looks like the government is going hat in hand to those who are likely backing the protesters and want to restore the elite establishment. It would be amusing to see the government's business case for the commercial banks.

[NongKhaiKid]

I'm sure with the government's reliability, honesty and credit worthiness the commercial banks will be queuing up to advance major loans.

If not i'm sure there will be a ' gentile reminder ' that it may be in their own bet interests.

[jonclark]

The NACC is probing the PM for alleged corruption in the rice scheme and now the government is asking commercial banks to continue to fund the scheme after the state banks refused.

If any commercial banks oblige, please pass on their details to me, I have a ponzi scheme in Nigeria which needs urgent refinancing.

[whoisyourdaddy]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

[EricBerg]

Another childhood dream shattered: Santa Claus lives in Thailand.

[Mosha]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

Don't burden them with derails.

[trogers]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

The Govt can always sell off more rice and pay off the loans...like shown in the chart below

[spirit47]

I will hope, that the Shin-clan pay the interest rates from their own money, if any bank give them...

[kannot]

so next time the farmers vote who do you think they will vote for? Stupid is as stupid does!

[whoisyourdaddy]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

The Govt can always sell off more rice and pay off the loans...like shown in the chart below

If they can, why have not they? and if they do, that would just cover the loan, what about other little bills which are needed to run the country

[Robby nz]

PT has a plan to pay back any loans.

As I posted on a related topic :

However some truth slowly emerges, As reported elsewhere from the finance ministry :

They plan to use (transfer) the budget set for infrastructure investment to pay the farmers.

That would be the 2.2 trillion, if they ever get it

[whoisyourdaddy]

PT has a plan to pay back any loans.

As I posted on a related topic :

However some truth slowly emerges, As reported elsewhere from the finance ministry :

They plan to use (transfer) the budget set for infrastructure investment to pay the farmers.

That would be the 2.2 trillion, if they ever get it

Sort of like paying one credit card with another? ie accumulate the debt and eventually default or run down the country

[notmyself]

Any chance you can lend me 1000 Baht so I can pay the 1000 Baht I owe you?

[trogers]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

The Govt can always sell off more rice and pay off the loans...like shown in the chart below

If they can, why have not they? and if they do, that would just cover the loan, what about other little bills which are needed to run the country

Extra visa charges from TV members...

[smedly]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

2.2 trillion is a big cushion that could hide discrepancies theft corruption and abuse for years

[whoisyourdaddy]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

The Govt can always sell off more rice and pay off the loans...like shown in the chart below

If they can, why have not they? and if they do, that would just cover the loan, what about other little bills which are needed to run the country

Extra visa charges from TV members...

Or billionaire party members may be can share the wealth a little, after all they love Thailand and doing it all for the country and its people.

Sharing a few billions from all the frauds and tax evasion, should not be a problem

[whoisyourdaddy]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

2.2 trillion is a big cushion that could hide discrepancies theft corruption and abuse for years

Absolutely, but then how does one obtain trillion baht loan when one can not even pay a million?

[smedly]

what they need to do to get out of this mess is start selling rice - price doesn't really matter, just sell it into global market, the only issue I see is they may not be able to sell the long term stored rice and flooding the market will drive the global price down further - but it has to be done and now

[winstonc]

I do not know about others, but i am very worried when government starts to beg for loans and does not have any money.

Even more so, when its about to default.

What would happen after the loan is received and paid out? how would they be paying it off and running the country?

2.2 trillion is a big cushion that could hide discrepancies theft corruption and abuse for years

when you see vultures picking over a carcasse..that will be them with that 2.2 trillion loan i would give them weeks to spend that mate...apols for spelling.

[renaissanc]

I wonder what the government will say to the banks. "We have a corrupt rice scheme, which is leaking money by the minute. We've lost 600 million Baht so far and we've run out of money. It's not true that we've staches away billions in our own bank accounts. That's just people's imagination. Would you kindly lend us 130+ billion more? I promise that we'll pay you back. ... Would a few pastry boxes help you to make a decision?"

Edited January 29, 2014 by renaissanc

[Smiles]

what they need to do to get out of this mess is start selling rice - price doesn't really matter, just sell it into global market, the only issue I see is they may not be able to sell the long term stored rice and flooding the market will drive the global price down further - but it has to be done and now

Is the quality of the rice sellable in the first place?

[TVGerry]

Would you loan money to someone who can't keep his finances and house in order? The fact that they can't pay the farmers shows they'll likely default on the loans. Good luck to the bank dumb enough to lend money to this government.

[Scamper]

Against the express will of the EC, the NACC, and the banks themselves, Pheu Thai has nonetheless decided to do what they've always been accustomed to doing - whatever they please - in spite of election ethics, in spite of impeachment proceedings, in spite of parliament having already dissolved, in spite of four days proximity to a national election. They will simply rob the banks of whatever monies they have, whether the banks want that or not, stuff whatever sacks they can find, stuff it with bills, and go about delegating it for massive graft in a way that will never be indexed or made accountable to the public. That is how you run a country into the ground. That is how you destroy a country's GDP. That is how you destroy a rice export industry, which used to occupy the top spot in the world. And that is how you convince the Thai people never to allow a group of " politicians " like this to ever run a government again.

[rubl]

"Deputy Commerce Minister Yanyong Phuangrach blamed anti-government demonstrators for trying to threaten state-owned banks against approving loans for the scheme."

This benevolent care-taking government is willing to lent much more money to help poor farmers, but those pesky anti-government protesters ... ...

[tomross46]

PT has a plan to pay back any loans.

As I posted on a related topic :

However some truth slowly emerges, As reported elsewhere from the finance ministry :

They plan to use (transfer) the budget set for infrastructure investment to pay the farmers.

That would be the 2.2 trillion, if they ever get it

They must be following instructions from someone else. It has been reported that 30-40% of all project money goes into the pockets of politicians.

[Soutpeel]

"Deputy Commerce Minister Yanyong Phuangrach blamed anti-government demonstrators for trying to threaten state-owned banks against approving loans for the scheme."

This benevolent care-taking government is willing to lent much more money to help poor farmers, but those pesky anti-government protesters ... ...

The government should do what the locals do when they need money, go and see a loan shark and borrow the cash at 20% interest pm, and failure to pay will result in peoples legs getting broken

[tonneke breda]

De protest leaders better call on all countryman to run to their banks and take out their cash, before the government cleans out their accounts to pay off the farmers..

[samuidave]

What a <deleted> joke. Tenders put out. Lmao. Come on, the game is up, crab lady. Pretending it's an opportunity of a lifetime for a bank to loan you money is perfect. It epitomizes how your political world is upside down from reality for the remaining people.