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

[JesseFrank]

Although the situation the farmers find themselves in is sad, I find it very hard to feel sorry for them. They were the ones who voted this gov't in.

If they were greedy and only thinking about themselves when they cast their vote instead of thinking about the financial health of the entire country, they wouldn't be in this situation.

That's perhaps a bit harsh.

They are poor and many are uneducated.

I imagine they were thinking about themselves and their families when looking at this offer.

And who you think those uneducated and poor will vote for this time, if the circus isn't called to a halt.

[smedly]

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

and guess who the loan sharks are affiliated with - the redshirts the government and Thaksin

and guess who is waiting for the farmers to pack it in and buy up their land for a fraction of the price - the redshirts who are affiliated with the government and Thaksin

getting the picture

[Why ask]

Any English people about that I can make sense of?

[jaiyen]

I have never heard of somebody asking for a loan and it goes to auction for the banks to bid on getting the custom. Is this a new thing or a Thai thing. Would one of the TV financial experts be so kind as to explain this unusual kind of transaction.

[Dogmatix]

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.

The way state enterprise unions work in Thailand it is pretty safe bet that the unions were in cahoots with the boards of GSB and BAAC. The directors were being put under great pressure by Kittirat to approve uncollateralised, unguaranteed loans to the government from the banks' capital funds that could easily be violation of the multiple regulations and result in criminal prosecution of the directors later on. Stoking up the unions to protest was a very neat Thai way for the directors, who are appointed by the Finance Ministry, to avoid the risk and keep their jobs at the same time. The labour union leaders can be rewarded for their loyalty by the directors appropriately.

[klauskunkel]

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

Ok, ok government, I'll help you out:

1. Just tell the banks it's a loan for a bridge, not a bridge-loan for a fubar rice scam. (This is called a lie, I know you can do it)

2. Then misappropriate those funds and pay the farmers. (This is called a crime, I know you can do it)

3. Just in case, blame foreigners. (This is called a cover-up, I know you can do it)

There, I wrote it all out for you, just follow the recipe. (This is called an "Idiot's Guide", I'm not so sure you can do it...)

[Dogmatix]

I used to think Kittirat was a man of integrity. As president of the Stock Exchange he said he would resign if he couldn't get Thai Bev listed in the face the Santi Askok religious crank protestors. He couldn't and did. As manager of the Thai national football team, he said he would resign if the team couldn't win anything it couldn't and he did. His only redeeming feature used to be his willingness to resign after an abject failure. But now that results of the worst cock up of his career are obvious, affecting the lives and livelihoods of millions of poor farmers and making a huge dent in the economy, there is not even a hint of remorse, let an offer to resign to accept responsibility for the national catastrophe.

[BlueNoseCodger]

and guess who the loan sharks are affiliated with - the redshirts the government and Thaksin

and guess who is waiting for the farmers to pack it in and buy up their land for a fraction of the price - the redshirts who are affiliated with the government and Thaksin

getting the picture

The reds opened up bank finance to poor people which killed the loan shark market, but don't let the truth interrupt you.

Meanwhile Sanook is digging into Sutheps financing.

It seems he borrowed 25 million baht money against his Ko Samui land deed 5071, from a company who owns Shabu Shabu at 8% pa.

This was just before he resigned to go on this crusade.

Now suppose he won this battle and got into power. How did he expect to get his 25 million back?

How did he expect to profit from his 25 million investment? And if it wasn't an investment, why does he complain that its gone!

So you're busy pretending Suthep is some beacon of clean, despite the Phuket land scandal, and all the other stuff on him, but you're missing the obvious thing about the current power grab.

He spent all this money, how did he expect to get it back, and where did it all come from in the first place!

Edited January 31, 2014 by BlueNoseCodger

[sammyD]

I have never heard of somebody asking for a loan and it goes to auction for the banks to bid on getting the custom. Is this a new thing or a Thai thing. Would one of the TV financial experts be so kind as to explain this unusual kind of transaction.

Certainly no financial expert, but I've heard of these loans going out for auction many times in Thailand, by a variety of administrations and for a variety of purposes.

However, I don't ever recall a situation such as this, in that no bidders showed up and no bids were made.

another First for Thailand, AFAIK.

.

Edited January 31, 2014 by sammyD

[trogers]

,

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.

They chose their govt.

Some people only learn like in a Thai saying - "Tears will only fall when one sees the coffin".

Edited January 31, 2014 by trogers

[Cricketnut]

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 IMF has already warned Thailand that the rice pledging scheme had the potential to BANKRUPT the country. No loans and no bonds.

Plus what they are doing to the farmers is disgraceful. the government IS selling rice, but this just happens to be Cambodian rice (inferior and a lot cheaper) and who is getting all the profit? Not your local Thai farmer.

So Thaksin waits for everyone to go bankrupt and then buys them all out. Gotta give it to him, he sure is one REAL capitalist!

[sammyD]

and guess who the loan sharks are affiliated with - the redshirts the government and Thaksin

and guess who is waiting for the farmers to pack it in and buy up their land for a fraction of the price - the redshirts who are affiliated with the government and Thaksin

getting the picture

The reds opened up bank

Wonderful, a red piggy bank was it?

Sorry to cut your off-topic diatribe short but this thread isn't about Suthep.

He isn't involved in the rice scam nor the lack of money necessary to pay for it.

[bigbamboo]

This is just downright embarrassing, never mind the loss of face. Not one bank is willing to trust Mr. T's government with their money and I bet even Sharkey or Don Somchai wouldn't be interested either.

And as for Kittikat all you can say is thank Buddha he isn't Japanese or else he'd have committed hari kiri from the shame of it of all by now.

I wonder what the ratings agencies or the international institutions will make of this except to say that this shower have about as much chance of getting a 2 trillion baht loan as I do.

Edited January 31, 2014 by bigbamboo

[GeorgeO]

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!

Gerry, the apologists seem to be rather conspicuous by their absence from this particular thread...!

[Old Man River]

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.

The government has tried to borrow the money and the problem hasn't been the EC. Just today, they offered a Ministry of Finance guarantee on a short term loan, "risk free" they said, but no Thai or foreign bank was interested. In November, before the EC were ever involved, the government tried to borrow through the capital markets, but the price (perceived risk), was too high and the government withdrew. What did the EC have to do with this?

Face it. The short term bank market and long term capital markets understand economic mismanagement and corruption and don't want to be involved. The EC has nothing to do with it. Soon, somehow, it will all be blamed on foreigners.

Sent from my iPad using Thaivisa Connect Thailand

[casualbiker]

and guess who the loan sharks are affiliated with - the redshirts the government and Thaksin

and guess who is waiting for the farmers to pack it in and buy up their land for a fraction of the price - the redshirts who are affiliated with the government and Thaksin

getting the picture

The reds opened up bank finance to poor people which killed the loan shark market, but don't let the truth interrupt you.

Meanwhile Sanook is digging into Sutheps financing.

It seems he borrowed 25 million baht money against his Ko Samui land deed 5071, from a company who owns Shabu Shabu at 8% pa.

This was just before he resigned to go on this crusade.

Now suppose he won this battle and got into power. How did he expect to get his 25 million back?

How did he expect to profit from his 25 million investment? And if it wasn't an investment, why does he complain that its gone!

So you're busy pretending Suthep is some beacon of clean, despite the Phuket land scandal, and all the other stuff on him, but you're missing the obvious thing about the current power grab.

He spent all this money, how did he expect to get it back, and where did it all come from in the first place!

"The reds opened up bank finance to poor people which killed the loan shark market, but don't let the truth interrupt you."

hahahahahahahahahahahaha

You obviously don't live in a Thai neighborhood !

killed the loan shark market....hahahahaahahaahahahhaha

[GAZZPA]

Just proves to me a point I have made recently on another post. Quite often Thai business people / politicians, (basically people who are in power in Thailand) live in the Thai bubble. The realities of what is going on is often invisible to them or they chose to ignore it, they just cannot get their heads out of the sand, even if everyone, and I mean everyone is telling them to.

Surely they would have asked for the banks to confirm participation before the meeting? Someone should have known that this was going to happen and tried to reschedule or at least address the banks concerns.. Looks like they all turned up to the meeting room, talked amongst themselves and then ate a rather large buffet..

I think the only way out for the poor farmers is to get the rice back as soon as possible, elect an honest commission to represent them (somehow) to manage the return of the title and then sell it themselves. I just don't see any other way for them. Even if sometime in the future they do get paid how many will have gone broke and what will happen with the next crop etc,,,

They are going to have to find another way and walk away from the government scheme before it's too late.

[fleeing]

What a perfect opportunity for the PDRC and Suthep to fill the void and call for donations to, temporarily, supplement the worst hit of the rice-farmers.

Seeing as they're not a political party, they could not possibly be prosecuted for vote buying, and it would definitely be a ground breaking move to show the 'urban elites' solidarity with the rurals they are supposed to despise.

Probably too lacking in dogma for it to happen in Thailand though.

[samuidave]

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?

This sociopathic government feels no embarrassment, shame or remorse. "Thanks in thinks, PT acts".

[Jeffrey346]

Simple solution....

Have all the Government Officials who stole the rice money fork it up. And then send them ALL to prison.

[Basil B]

The gullible poorly educated are poor and believe in Santa Thaksin, they vote for him, they give him their rice to sell...

The bank are run by intelligent well educated people who have a job to make money for their investors, not lose it.

[samuidave]

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.

How about blame the farmers for their greed ?

Even before the 2011 election had passed, everyone already predicted how the rice and tablet scams were gonna end.

Why did the farmers not know what everyone else in this country knew ?

The farmers don't know because the message they get from the TV and local radio is propagandized to hide the truth. Keep the faith in Kuhn Thaksin and you, too, will be rewarded with wealth. That's all they tend to hear, over an over and over for the last 13 years.

It's like how the US culture is unable or refuses to recognize US crimes. It is mass delusion.

[Basil B]

heard thing are so bad in the PTP, they have not been able get any bank notes for Sunday so will be handing out IOU's

[Phatcharanan]

Simple solution....

Have all the Government Officials who stole the rice money fork it up. And then send them ALL to prison.

Not enough prisons I'm afraid.

[Cricketnut]

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!

Gerry, the apologists seem to be rather conspicuous by their absence from this particular thread...!

OK just to appease it IS the Ammarts behind this, just not Thaksins!

Sent from my i-mobile i-STYLE 8.2 using Thaivisa Connect Thailand mobile app

[tingtongteesood]

Waiting for red sheeple to start arguing 'It's the elites, they are conspiring against our dearly beloved fugitive puppet master, why do they have to be so mean to poor Poo ?!' Or 'It's all the EC's fault, they are telling the banks not to help' or some such...

Sad for the farmers, but you decided to trust a snake and it bit you on the ass. Learn your lesson and move on....

[Old Man River]

What a perfect opportunity for the PDRC and Suthep to fill the void and call for donations to, temporarily, supplement the worst hit of the rice-farmers.

Seeing as they're not a political party, they could not possibly be prosecuted for vote buying, and it would definitely be a ground breaking move to show the 'urban elites' solidarity with the rurals they are supposed to despise.

Probably too lacking in dogma for it to happen in Thailand though.

Still, a good idea. The RS's need ideas like this, as the former political party known as the Democrats and Thaksin and all of his political appointees, have failed them. Their supporters are blaming Suthep, the E C and anyone else they can think of, but the politicians remain rich and some are getting richer and they are all pointing fingers at each other while the farmers and others in Isaan suffer.

Sent from my iPad using Thaivisa Connect Thailand

[tingtongteesood]

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.

Ah but it is the farmers faults for being stupid enough to believe the bs from PT and vote for them, they only have themselves and PT to blame. And as for the EC they can't break the law, PT keep threatening them with all kinds of crap and the last thing they want to do is break the law for any reason and rightly so...

[love1012]

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!

exactly - its all those pesky bangkok elites fault!!!!!!!

[love1012]

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

Fascist thugs.

Fascist bangkok elite thugs!! ...................