Bridge loan auction for rice scheme met with no-show by banks

BANGKOK, 31 January 2014 (NNT) – No banks were reportedly present at the government’s auction of a bridging loan worth 20 billion baht, which is to be used to pay farmers in the rice pledging scheme, due to fear of risks and lack of clarity.

A total of 34 commercial banks were previously invited by the Ministry of Finance to take part in the first round of auction of the 20-billion-baht bridging loan on Thursday. Nonetheless, according to reports, none of the banks arrived at the auction venue on the day, given they were alarmed by the ambiguity of the loan plan and were not willing to take such a high risk.

Mr Piti Tantakasem, Chief Wholesale Banking Officer of TMB Bank, revealed that the bank opted not to engage in the auction because the legal terms were still unclear, making the loan an extremely risky one. He said the bank was seeking consultation with its risk assessment panel and the decision whether or not it would take part in the next round of auction was still pending.

Mr Payungsak Chartsutipol, Director and Chairman of the Board of Executive Directors of Krungthai Bank, reaffirmed that the bank’s executive board had not made any resolution to issue loans to the government for use in the rice pledging scheme. He also claimed that the government had never asked the bank for such loans while urging the public not to believe rumors in the social media.

Meanwhile, Deputy Commerce Minister Yanyong Phuangrach attributed the government’s inability to acquire loans from state-run banks, such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, to the strong objection from the banks’ labor unions. He thus urged the unions to think of the plight of rice farmers who had not been paid for their crops and were facing huge burdens from various financial obligations.

-- NNT 2014-01-31

No banks were reportedly present at the government’s auction of a bridging loan worth 20 billion baht

A total of 34 commercial banks were previously invited by the Ministry of Finance

Sold to the... oh where is everyone?

It's Sutheps doing all this -him and his thugs,

I am the same as the rest.

Last paragraph from the OP.

Meanwhile, Deputy Commerce Minister Yanyong Phuangrach attributed the government’s inability to acquire loans from state-run banks, such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, to the strong objection from the banks’ labor unions. He thus urged the unions to think of the plight of rice farmers who had not been paid for their crops and were facing huge burdens from various financial obligations.

Can someone please tell me how to get the audio of this paragraph...... It had to come with soft , sad , violin music.

Tell the millers, middlemen and surely the politicians to think of the poor farmers and their families.... tell the people who soaked up the money before "the poor Farmers"

Especially think of the agony the families of the 3 farmers who were driven to suicide by this planned government cluster*uck, are now going through.

NO ANY financial institution in Thailand trust Yingluck government anymore!!!

No collateral no money, and we will not take rice as collateral. Rice is a perishable product, it can only be left on the ground in the rain for a short period of time, than all it is good for is fermentation, to bake rice whiskey Low Kow.

Meanwhile, Deputy Commerce Minister Yanyong Phuangrach attributed the government’s inability to acquire loans from state-run banks, such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, to the strong objection from the banks’ labor unions. He thus urged the unions to think of the plight of rice farmers who had not been paid for their crops and were facing huge burdens from various financial obligations.

Yet there has not been so much as an apology from the Chairperson of the rice scheme or ant PTP ministers. However, they are quick to pour shame on the banks because of the plight of the poor old farmers.

I will also be pulling all my cash out of TMB if they as so much as hint that they are going to attend the next auction on Tuesday. I will also tell the staff why.

This is real embarrassing for the finance ministry. Banks don't want to get involved in the rice scheme it seems. Now what? Selling bonds? Loan from international banks?

From :The Government

To : Rice Farmers

Sorry you haven't been paid but as you know it's not our fault so please re-elect us.

We promise to put the breathing space you give us to good use and will spare no effort to come up with more BC excuses.

Sorry about typing, should be " ...BS excuses ".

Meanwhile, Deputy Commerce Minister Yanyong Phuangrach attributed the government’s inability to acquire loans from state-run banks, such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, to the strong objection from the banks’ labor unions. He thus urged the unions to think of the plight of rice farmers who had not been paid for their crops and were facing huge burdens from various financial obligations.

And the Unions answered, stop blaming others and clean up your own mess, you corrupt fool.

This is real embarrassing for the finance ministry. Banks don't want to get involved in the rice scheme it seems. Now what? Selling bonds? Loan from international banks?

Mr T could cover the outstanding debts to the farmers and never notice the decrease in his billions.

But would he? I mean he loves the poor folk, doesn't he?

...due to fear of risks and lack of clarity.

I wonder why this caretaker government does not put risk to rest by bringing the issue to the Constitution Court for a ruling...

34 invited

34 no shows

I dont suppose the Govt get a hint from this reaction.

This is real embarrassing for the finance ministry. Banks don't want to get involved in the rice scheme it seems. Now what? Selling bonds? Loan from international banks?

Well considering that the government was warned that borrowing money for the scam can easily be deemed unconstitutional from a few sources including ex finance minister and EC. They have been left and cut adrift to take the rap on their own. Nobody wants to have anything to do with it.

The constitutional court is just sitting back and waiting for a petition to come in the very moment they borrow, and they will come down on them hard. It is not the CCs place to order the government about, so they only have the power to sit a wait for breeches of the constitution occur and they are petitioned.

They will almost certainly adjudge it as a breech of the election articles. That will be yet another impeachment hearing pending.

It's like the government are willing to risk everything to preserve their image with 'their' electorate. Even though deep down they know they won't be around in a month or two anyway. Maybe they figure they can wait out the 5 year ban and come back bigger and stronger to snatch the country back., but I would not get too confident, these reforms are very likely to adjust that 5 year ban to a life ban..... Just to make sure they can't ever get back.

This will not be a judicial coup by the way, if the PTP and Yingluck were squeaky clean, then the courts would have no power to indict them anyway, but all the ammo that the courts have, comes 100% from the offenders. Not the PDRC. Before anyone tries to challenge it.

Is ANY bank in the world willing to lend this sort of money to a government hanging by a thread with the courts able to shoot a hole through the deal AFTER the money has been handed over?

This is real embarrassing for the finance ministry. Banks don't want to get involved in the rice scheme it seems. Now what? Selling bonds? Loan from international banks?

Mr T could cover the outstanding debts to the farmers and never notice the decrease in his billions.

But would he? I mean he loves the poor folk, doesn't he?

I doubt that very much.... It is upward of $4 billion USD, Thaksin has nowhere near that amount.

Back in November the Government issued Bonds to the value of Baht 75 Billion to try to keep this trainwreck scheme alive - just over 50% of the Issue was taken up.

How on earth can the Government still believe any Bank will be interested in a new Bond Issue, from a Caretaker Government with dubious authority to issue the Bonds anyway?

Unfortunately this is going to go from bad to worse, with the Farmers getting deeper and deeper into debt from Loan Sharks etc. with no end in sight for them to receive payment for Rice already delivered to the scheme.

The Election on Sunday will solve nothing. A new Government cannot be formed because of the Constitutional requirement that 95% of Seats in Parliament must be occupied before a new Government can be installed. That will certainly not be achieved so the present "Caretaker" Government will still be there - with no powers under the Constitution to take on any additional Debt or commitments which would bind a new Administration.

I can only foresee a lot more pain for the Rice Farmers.

Patrick

MacWalen, on 31 Jan 2014 - 14:34, said:

This is real embarrassing for the finance ministry. Banks don't want to get involved in the rice scheme it seems. Now what? Selling bonds? Loan from international banks?

No....something much simpler.........Resign and get lost from the political scene.

Thailand would be better without them.

...due to fear of risks and lack of clarity.

I wonder why this caretaker government does not put risk to rest by bringing the issue to the Constitution Court for a ruling...

Rule on what? Yes the rice is rotten? Where is the rest of it? Why did you say 7 million tonns have been sold in G to G deals but those buyers are wont claim the purchase?

Shinawatra spin doctors are going to blame this on the ammarts of course! They control the banks so it's their fault they don't want to loan the government the money! Therefore, if the rice farmers starve, blame the ammarts!

Go "economic dream team"

This is real embarrassing for the finance ministry. Banks don't want to get involved in the rice scheme it seems. Now what? Selling bonds? Loan from international banks?

The terms were ambiguous. Banks will get involved if they can identify how they will be repaid, they trust it, and the return is high enough to cover risks plus give them a fair return. Political risks are just one of the many risks banks evaluate, but then the MOF said these were risk free loans. Obviously banks haven't agreed, and that includes local and international banks so don't expect international banks to be lining up either.

Sent from my iPad using Thaivisa Connect Thailand

Thaksinomics are officially outdated. Sorry, banks, farmers and all general public know the score now.

34 invited

34 no shows

I dont suppose the Govt get a hint from this reaction.

Get a hint about what? Surely those who support the farmers (some of whom are apparently commiting suicide) shouldn't be pleased about this news? The farmers are now paying for the govt's incompetence in not obtaining the money before they dissolved house. Sure, it's ultimately the govt's fault, but that doesn't mean it's a good thing that farmers are suffering yet more.

The EC could make an exception and allow the govt to borrow money - yet they won't, despite being willing to disregard the constitution in trying to get the election moved. I know about the corruption in the rice scheme and how those at a very high level of govt have profited, yet that doesn't mean farmers should have to suffer through no fault of their own.

Mr Piti Tantakasem, Chief Wholesale Banking Officer of TMB Bank, revealed that the bank opted not to engage in the auction because the legal terms were still unclear, making the loan an extremely risky one. He said the bank was seeking consultation with its risk assessment panel and the decision whether or not it would take part in the next round of auction was still pending.

Wowowowowoooooow,... please, TMB customers, please get your money out, before Mr. Piti Tantaksem changes his mind or is threatened by any means to comply with governments' backstabbing-forced schemes, for the sake of saving FACE

Bridge loan auction for rice scheme met with no-show by banks

Man, the banks don't even bother to show up!

Things are just getting worse for poor (no pun intended) Yingluck.

There's a fantastically useful expression in the English language that helps in situations like this.

Pass it on to Yingluck, please. She might want to use it.