Thai banks say why they reject rice loan auction

[webfact]

Banks say why they reject rice loan auction



BANGKOK: -- Commercial and state banks yesterday attributed legal issue as main reason to not enter the first 20-billion baht bridging loan auction.

Bangkok Bank president Kosit Punpiumrat says that the bank would not be joining the loan auction to raise fund for the government’s rice-pledging scheme.

He said the reasons behind the bank’s decision are that the loan issue is the heart of public interests at the moment and that it is still not very clear in the aspect of legality so the bank must consider the participation carefully.

At the same time Thai Military Bank also said that it has not joined the auction because of legal complications and retain the rights to consider the best possible solution for all parties.

Meanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmed the government understands and sympathizes with the farmers for the delay of payments.

The minister informed that relevant agencies are currently trying their best to gather the amount of money needed and have been selling rice in stock and looking for loans, though every action has proven to be difficult due to the limitations current state of the government.
He further ensured the rice mortgage scheme was implemented for the benefit of the farmers and asked that corruption and delay in payments be looked at differently, as they are two different things.

Minister of Commerce Niwatthamrong Boonsongpaisarn said the government has released into the market over 1 million tonnes of rice in stock in the past month, and was stopped short when parliament was dissolved, since the caretaker government could no longer carry out any projects that would commit the new government.

TDRI’s Research Director Viroj Na Ranong pointed out that although the government should sell as much rice in stock as they can, but it could not carry on with the method indefinitely, as the problem would become more complicated.

He suggested that the caretaker government solve the problem for rice farmers through short term solutions during the period where the prices of produce are lower than expected. He also said both the Pheu Thai Party’s rice pledging scheme and Democrat Party’s price guarantee scheme should be scrapped because they were proved to be failed policies.

Source: http://englishnews.thaipbs.or.th/banks-say-reject-rice-loan-auction/


-- Thai PBS 2014-02-01

[tomyummer]

Again, the Thai government knows nothing about their own laws and legalities. Do first, ask later. Sad.

[djjamie]

So in summary the caretaker government headed by Yingluck are trying to do something illegal (no surprises) and the banks are hesitant to participate in illegal activity.

Where are the police to arrest Yingluck? Ahhhh. Silly question.

[samtam]

The minister informed that relevant agencies are currently trying their best to gather the amount of money needed and have been selling rice in stock and looking for loans, though every action has proven to be difficult due to the limitations current state of the government.

He further ensured the rice mortgage scheme was implemented for the benefit of the farmers and asked that corruption and delay in payments be looked at differently, as they are two different things.

Whaat?! No, not at all related. Take his word for it. Leave it out of the risk assessment analysis.

[casualbiker]

"Minister of Commerce Niwatthamrong Boonsongpaisarn said the government has released into the market over 1 million tonnes of rice in stock in the past month, and was stopped short when parliament was dissolved, since the caretaker government could no longer carry out any projects that would commit the new government."

Classic...for weeks its been it's not our fault it's the banks, it's Suthep, it's every one else... Finally one of them tells the truth... Phua Thai fxxked up!

Edited February 1, 2014 by casualbiker

[Mosha]

Again, the Thai government knows nothing about their own laws and legalities. Do first, ask later. Sad.

More likely they still think they are above the law.

[Ruin]

What a sad state (pun intended) when the government doesn't have the money to pay its own bills.

If I was thinking in an underhand way, I'd wonder if the banks run by Bangkok business people were trying to sabotage the red shirt election voters.

[kurtgruen]

"He further ensured the rice mortgage scheme was implemented for the benefit of the farmers and asked that corruption and delay in payments be looked at differently, as they are two different things."

Two different things??? Benefit of the farmers??? Let's see, they created this scam, stole most of the money, couldn't pay the farmers and now they are saying, it was all done with good intentions?

They were supposed to pay the farmers six month ago, when they were still in power and now they are blaming the banks, Democrats, Protesters and anyone else they can, for their own F*&kups?

Pathetic!

[JRSoul]

"......although the government should sell as much rice in stock as they can, but it could not carry on with the method indefinitely, as the problem would become more complicated."

The complication being that if they managed to sell every grain in stock, they still would have huge debts.

Further complicated by the reluctance of buyers to take ANY making selling ALL a rather difficult task.

[ramrod711]

Meanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmedMeanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmed the government understands and sympathizes with the farmers for the delay of payments.

the government understands and sympathizes with the farmers for the delay of payments. But we had to send Thaksin 30,000,000,000 baht, so we don't have the money. Please try to understand, we are not in charge, we are only tools in the hands of the master. We are not capable of using our own minds, i guess you could call us puppets.

[aguy30]

"He further ensured the rice mortgage scheme was implemented for the benefit of the farmers and asked that corruption and delay in payments be looked at differently, as they are two different things."

I couldn't be more in agreement with "two different things". You have the poor, hard working farmers growing rice and trusting the government.

You also have the PIGS at the trough trying to bleed the system for whatever they can get in a scam designed to benefit the non farming friends of the government and to buy votes with a populist program that can't be sustained.

Thaksin and Yinglick Shinawatra should loan their money to the government with no interest rate. After all, isn't it their personal government?

A loan is a really bad investment and use of bank depositors' money. I would immediately remove all my funds from a bank that loaned money to this government. It will just continue the scam and the chances of default are great.

Edited February 1, 2014 by aguy30

[Qauvorka]

So in summary the caretaker government headed by Yingluck are trying to do something illegal (no surprises) and the banks are hesitant to participate in illegal activity.

Where are the police to arrest Yingluck? Ahhhh. Silly question.

Sorry off topic but had to laugh, an Essendon supporter unhappy about "illegal activity"

[chainarong]

The Thai banks, like any organization need to be careful in there reply , as DSI will have them in court on some frivolous charge , however If I may Sirs reply on behalf of the people of Thailand and the expat community, you didn't want to get into bed with a shonky deal , something more like a scam, that would discredit Thai banks for along time to come

[Arkady]

This article is rather short of explanations from banks as to why they didn't participate, despite its title. Kosit is executive chairman of Bangkok Bank.

"TDRI’s Research Director Viroj Na Ranong pointed out that although the government should sell as much rice in stock as they can, but it could not carry on with the method indefinitely, as the problem would become more complicated."

What on earth does this mean?

"Minister of Commerce Niwatthamrong Boonsongpaisarn said the government has released into the market over 1 million tonnes of rice in stock in the past month, and was stopped short when parliament was dissolved, since the caretaker government could no longer carry out any projects that would commit the new government."

He doesn't explain why the government defaulted on its obligations to the farmers in October before the protests started.

Basically a non-article.

[fab4]

Meanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmedMeanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmed the government understands and sympathizes with the farmers for the delay of payments.

the government understands and sympathizes with the farmers for the delay of payments. But we had to send Thaksin 30,000,000,000 baht, so we don't have the money. Please try to understand, we are not in charge, we are only tools in the hands of the master. We are not capable of using our own minds, i guess you could call us puppets.

"But we had to send Thaksin 30,000,000,000 baht,"

You've mentioned this a couple of times now and I couldn't think where this ridiculous lie came from, and then it clicked. It's so obviously anti Thaksin, where else could it come from, good ol' sondhi's antithaksin.com

Corruptions and briberies in all sectors have been exponentially on the rise. To win an election, an MP may have to pay up to 30 million bahts (1 million USD) for buying a vote at a rate of one to five hundred bahts (10-15USD) per head. Most politicians get elected because of vote-buying and return their investments in the House by selling themselves to pass biased resolutions supporting the governments particularly votes of confidence or corrupt budget bills. http://www.antithaksin.com/032_Back_History_00.html

You do know the rules on this forum about not posting "any material which is knowingly or can be reasonably construed as false, inaccurate, invasive of a person's privacy, or otherwise in violation of any law"

You might want to consider that and certainly think of a more reliable source for your posts.............................

[siampolee]

fab4 post # n15

You do know the rules on this forum about not posting "any material which is knowingly or can be reasonably construed as false, inaccurate, invasive of a person's privacy, or otherwise in violation of any law"

You might want to consider that and certainly think of a more reliable source for your posts.............................

Coming from you with your expertise those comments caused me to spill my coffee due to the humour that you introduced to the thread.

[a99az]

Fully understand the banks unwillingness to loan money to the government for rice held and unpaid for by the Thai government.

Might be best if the banks buy the rice, they could bag it up and give it to new customers

[Mosha]

Meanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmedMeanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmed the government understands and sympathizes with the farmers for the delay of payments.

the government understands and sympathizes with the farmers for the delay of payments. But we had to send Thaksin 30,000,000,000 baht, so we don't have the money. Please try to understand, we are not in charge, we are only tools in the hands of the master. We are not capable of using our own minds, i guess you could call us puppets.

"But we had to send Thaksin 30,000,000,000 baht,"

You've mentioned this a couple of times now and I couldn't think where this ridiculous lie came from, and then it clicked. It's so obviously anti Thaksin, where else could it come from, good ol' sondhi's antithaksin.com

Corruptions and briberies in all sectors have been exponentially on the rise. To win an election, an MP may have to pay up to 30 million bahts (1 million USD) for buying a vote at a rate of one to five hundred bahts (10-15USD) per head. Most politicians get elected because of vote-buying and return their investments in the House by selling themselves to pass biased resolutions supporting the governments particularly votes of confidence or corrupt budget bills. http://www.antithaksin.com/032_Back_History_00.html

You do know the rules on this forum about not posting "any material which is knowingly or can be reasonably construed as false, inaccurate, invasive of a person's privacy, or otherwise in violation of any law"

You might want to consider that and certainly think of a more reliable source for your posts.............................

From is own mouth on Forbes, this government have sent him money, lots of it.

http://www.forbes.com/profile/thaksin-shinawatra/

Edited February 1, 2014 by Mosha

[siampolee]

Mosha.

Just to help fab4 understand the truth and not his flights of fancy I have posted the start of the article and the link so as fab4 is both reassured and educated as to the truth of the matter and that we are not conducting an embroidery session

Controversial former prime minister lives in Dubai as a fugitive from Thailand to avoid corruption charges. His influence over sister Yingluck, Thailand's current prime minister, whom he nominated for the position, is said to be waning. Ousted in 2006 coup, Shinawatra disclosed to FORBES in October that Thai authorities had returned to him close to $1 billion of his $2.3 billion in frozen assets. His [...] more

http://www.forbes.com/profile/thaksin-shinawatra/

[kingstonkid]

So in summary the caretaker government headed by Yingluck are trying to do something illegal (no surprises) and the banks are hesitant to participate in illegal activity.

Where are the police to arrest Yingluck? Ahhhh. Silly question.

Actually if you read the news they have already acted. she is going to be brought up charges after the election.

[Skywalker69]

Meanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmedMeanwhile, Minister of the Prime Minister’s Office Varathep Ratanakorn affirmed the government understands and sympathizes with the farmers for the delay of payments.

the government understands and sympathizes with the farmers for the delay of payments. But we had to send Thaksin 30,000,000,000 baht, so we don't have the money. Please try to understand, we are not in charge, we are only tools in the hands of the master. We are not capable of using our own minds, i guess you could call us puppets.

"But we had to send Thaksin 30,000,000,000 baht,"

You've mentioned this a couple of times now and I couldn't think where this ridiculous lie came from, and then it clicked. It's so obviously anti Thaksin, where else could it come from, good ol' sondhi's antithaksin.com

Corruptions and briberies in all sectors have been exponentially on the rise. To win an election, an MP may have to pay up to 30 million bahts (1 million USD) for buying a vote at a rate of one to five hundred bahts (10-15USD) per head. Most politicians get elected because of vote-buying and return their investments in the House by selling themselves to pass biased resolutions supporting the governments particularly votes of confidence or corrupt budget bills. http://www.antithaksin.com/032_Back_History_00.html

You do know the rules on this forum about not posting "any material which is knowingly or can be reasonably construed as false, inaccurate, invasive of a person's privacy, or otherwise in violation of any law"

You might want to consider that and certainly think of a more reliable source for your posts.............................

You've mentioned this a couple of times now and I couldn't think where this ridiculous lie came from, and then it clicked. It's so obviously anti Thaksin, where else could it come from, good ol' sondhi's antithaksin.com

It comes from good old Forbes, not from Sondhi.

"Controversial former prime minister lives in Dubai as a fugitive from Thailand to avoid corruption charges. His influence over sister Yingluck, Thailand's current prime minister, whom he nominated for the position, is said to be waning. Ousted in 2006 coup, Shinawatra disclosed to FORBES in October that Thai authorities had returned to him close to $1 billion of his $2.3 billion in frozen assets".

http://www.forbes.com/profile/thaksin-shinawatra/

Edited February 1, 2014 by Skywalker69

[DoctorG]

The Gov should pass the hat around amonst all those people who may have skimmed off the proceeds.

[ratcatcher]

What a sad state (pun intended) when the government doesn't have the money to pay its own bills.

If I was thinking in an underhand way, I'd wonder if the banks run by Bangkok business people were trying to sabotage the red shirt election voters.

Thai Finance Minister begs for money..........from anyone.........please.

If i was thinking in an underhand way, I'd wonder if the PTP was trying to sabotage Thailand's future.

[Robby nz]

And the bit at the bottom :

He also said both the Pheu Thai Party’s rice pledging scheme and Democrat Party’s price guarantee scheme should be scrapped because they were proved to be failed policies.

He doesn't seem to know that it was PT who scrapped the Dems subsidy per rai of land in production,which was not a price guarantee and that that policy was working well in getting money direct to the farmers.

I wonder if he also knows that there was no problems with the payments to the farmers continuing after the Dems dissolved parliament and were in a caretaker mode right up to the time PT took over.

If he did he should realize that it was because the Dems had a finance minister who understood finance and knew how to plan ahead.

And of course he is right the pledging scheme should (must) be scrapped.

[mogo51]

As I sit here and read these stores, forgive me for likening it to the Labor party just ousted in the last election in Australia. They ramped up a debt of over $600billion zfter starting with about $80 surplus some 6 years ago. I am wondering that perhaps they sought the advice of Thaksin. Miss Thaksin and her team of bunglers.

Perhaps someone can confirm or refute a story related to me the other day, Thai Finance Minister went to World Bank with hand out for loans, was told that they had to get their revenue in order first by 1. raising VAT (or whatever they call it), 2. Abolishing rice buying scheme.

When interviewed said Finance Minister (term is used loosely) stated that they did not know what they were talking about and did not understand Thailand?????

Good answer dude!

[GeorgeO]

"But we had to send Thaksin 30,000,000,000 baht,"

You've mentioned this a couple of times now and I couldn't think where this ridiculous lie came from, and then it clicked. It's so obviously anti Thaksin, where else could it come from, good ol' sondhi's antithaksin.com

You do know the rules on this forum about not posting "any material which is knowingly or can be reasonably construed as false, inaccurate, invasive of a person's privacy, or otherwise in violation of any law"

You might want to consider that and certainly think of a more reliable source for your posts.............................

It comes from good old Forbes, not from Sondhi.

"Controversial former prime minister lives in Dubai as a fugitive from Thailand to avoid corruption charges. His influence over sister Yingluck, Thailand's current prime minister, whom he nominated for the position, is said to be waning. Ousted in 2006 coup, Shinawatra disclosed to FORBES in October that Thai authorities had returned to him close to $1 billion of his $2.3 billion in frozen assets".

http://www.forbes.com/profile/thaksin-shinawatra/

As usual, never a "thank you for enlightening me ... sorry, you're right, I'm wrong" from fabbie; he just throws in his incorrect ten cents worth and then runs off to another topic to post more nonsense...!

[superdome]

<deleted>...in most other economies....the goverment help the banks out...did i miss something..<deleted>

[heina]

Bangkok bank is main yellow shirt mob and democrat party sponsor. It is part or their game.

Gov better sell bonds to peoples. But let them take out their low interest deposits before.

Then that banksters ship sink of course.

Edited February 1, 2014 by heina

[SanSaiExPat]

So in summary the caretaker government headed by Yingluck are trying to do something illegal (no surprises) and the banks are hesitant to participate in illegal activity.

Where are the police to arrest Yingluck? Ahhhh. Silly question.

That was not the rationale at all. Any bank would be hesitant to make loans to any government that was in a "caretaker" status. To read anything more into the statements by the banks is just pure unfounded speculation.

[diehard60]

"He suggested that the caretaker government solve the problem for rice farmers through short term solutions during the period where the prices of produce are lower than expected. He also said both the Pheu Thai Party’s rice pledging scheme and Democrat Party’s price guarantee scheme should be scrapped because they were proved to be failed policies"

Look at the bold type there. this proves it is not just ONE party's fault.