B17bn rice loan eases pressure on government

[Robby nz]

You lot don't seem to get it, the GSB Director has said :

BANGKOK: -- Government Savings Bank director Worawit Chailimpamontri admitted this afternoon that the bank had agreed to extend 20 billion baht inter-bank loan to the Bank of Agriculture and Agricultural Cooperatives in order to improve the latter’s liquidity.

Speaking at a press conference held this afternoon at the GSG’s head office, Mr Worawit said that the loan which was endorsed by the board in January was a normal transaction because the bank had surplus liquidity to be extended. He admitted that only five billion baht had been transferred to BAAC on February 13 and not nine billion baht as widely speculated.

He denied that the loan was meant to support the rice pledging scheme and it was extended in the form of P/N payable within three months.

The loan is NOT meant to support the rice pledging.

Therefore is NOT meant to be paid to the farmers.

Cant be clearer than that.

[Old Man River]

So, as stated the delays in paying the farmers was down to the anti-government protesters as confirmed by the GSB labour union head Likit Klinthanom. Perhaps the farmers will think again about approaches from the ever slippery suthep and his sheeple.

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Oh please! 17 billion out of a 130 billion baht doesn't satisfy many does it. And the country is still burdened with a massive debt from the government's ineptitude and corruption.

Why dont you do a bit of research before posting? Thailands national debt as a percentage of GDP is well below most European countries, The US and Japan. 130 bn baht is 2.5bn quid. A drop in the ocean in terms of world economics and the Isaan has boomed as a result.

For the record, the attached is an indication by country. Please note, it makes no sense comparing countries. You can see the countries with lower ratios.

http://countryeconomy.com/national-debt

Thailand can support additional debt, which is why it was going to borrow the THB 2 trillion infrastructural loan. What I don't understand is why the government, pre-dissolution, delayed paying poor farmers.

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[Crushdepth]

BANGKOK: The caretaker government has secured a loan of 17 billion baht from the Government Savings Bank (GSB), which will be used to distribute overdue payments to rice farmers.

But...

He denied that the loan was meant to support the rice pledging scheme and it was extended in the form of P/N payable within three months.

So is this money definitely going into the hands of the farmers (all of it?) or is it just being used to shore up the bruised liquidty of the bank?

[Fryslan boppe]

When hearing the prevailing perspectives of the UDD?RS/PTP, there is often a disconnect from what is portrayed in the mainstream media...The following quotes demonstrate this:

"....ease pressure on the government".....

What pressure?...It is well known among the electoral majority behind this Govt. that they are doing everything in their power to expedite this thing, and it is well known who/what is preventing them from doing it...The Elitist Opposition conspiracy to try and discredit this Govt. and their millions of supporters using an issue such as this, is not a secret...In fact, the efforts by the Govt. to overcome that self-serving resistance by the Opposition using rice farmers as pawns, increasingly casts it in a positive light....It continues to put them on the side of that electorate while the Opposition is unknowingly shooting themselves in the "electoral foot"

"The caretaker government has been struggling to find the 130 billion baht needed to pay the more than 1 million farmers..."

As mentioned above, the electoral majority know who their Govt. is struggling against.....They will demonstrate this understanding in future electoral realities.

"...the government’s ongoing political woes..."

What political woes?....Overcoming coup-mongers on the street and their shadow supporters up the Elitist ladder do not 'political woes' make......It just clarifies who is who..... Managing Opposition opposition and noise, does not equate to 'political woes"

[Crushdepth]

^I know. And dullards still trust/vote for them.

Perhaps experience of the alternative is a definitive factor

Problem is, the opposition to the government just had to wait a couple of years to have them voted out, unless of course the electorate see things differently, perhaps looking to retain their right to vote, and be given a choice, not see elections thrown into intentional disarray by non participation!

So when the reds protested the Abhisit government to step down immediately, that was democracy? When the reds were taking over hospitals, stop and searching cars and stealing weapons from the army that was OK but peaceful protests are not? oooookeeee. right.

Ok help me out here....

I missed the part where Abhisit was democratically voted in by the people.....when was that?

You know what a coalition is and you know what happens when one party jumps ship or, in this case, gets axed for electoral fraud. Whoever has the numbers afterwards forms the government. That's how democracies work.

Spare us the misdirection, how stupid do you think people are?

[Baerboxer]

So, as stated the delays in paying the farmers was down to the anti-government protesters as confirmed by the GSB labour union head Likit Klinthanom. Perhaps the farmers will think again about approaches from the ever slippery suthep and his sheeple.

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Didn't he say the loan was approved on Jan 8th? PTP were already, late, had broken several promises to pay, and deep in the shit way before then.

Good try - but as usual only picking the bits of information that suit you.

[ETatBKK]

I am not an economist and am not in the finance. would GSB customers go to the bank and withdraw money tomorrow ? a common symptom in most financial crisis.

[fab4]

So, as stated the delays in paying the farmers was down to the anti-government protesters as confirmed by the GSB labour union head Likit Klinthanom. Perhaps the farmers will think again about approaches from the ever slippery suthep and his sheeple.

Sent from my i-mobile IQ 5 using Thaivisa Connect Thailand mobile app

Didn't he say the loan was approved on Jan 8th? PTP were already, late, had broken several promises to pay, and deep in the shit way before then.

Good try - but as usual only picking the bits of information that suit you.

Take it up with the GSB labour union head if you don't believe what he said, not me.

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[Baerboxer]

There should be laws in place that forces the government to be fiscally discipline. Borrowing money for a scheme that is not financially viable is a disaster, and puts a burden on tax payers. This would put a stop to populist policies for buying votes.

Strange I was not aware the large agricultural subsidies in Europe and the USA are not to facilitate a stronger stable economy, but financially viable vote buying?

The ones in the US and EU don't seem as riddled with government fraud and corruption either.

[Baerboxer]

So, as stated the delays in paying the farmers was down to the anti-government protesters as confirmed by the GSB labour union head Likit Klinthanom. Perhaps the farmers will think again about approaches from the ever slippery suthep and his sheeple.

Sent from my i-mobile IQ 5 using Thaivisa Connect Thailand mobile app

Didn't he say the loan was approved on Jan 8th? PTP were already, late, had broken several promises to pay, and deep in the shit way before then.

Good try - but as usual only picking the bits of information that suit you.

Take it up with the GSB labour union head if you don't believe what he said, not me.

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I have no reason to doubt what the gentleman said.

Now, answer my question rather than a different one in the hope no one notices.

Usual evasiveness.

[Blackmirage2013]

The damage is done. This is only to rectify the situation and pay restitution for A CRIME COMMITTED.

This in NO WAY relieves Yingluck of her crime of bribing farmers to vote for Pueu Thai in exchange for higher than market priced rice AT THE TAXPAYERS EXPENSE.

Perhaps the farmers have all forgotten that the only reason they get prime prices for their rices is because WE, THE HARD WORKING TAXPAYER makes it possible.... Not them, not the rich Thais who pay no taxes, not the poor people who think tax is thumb tacks [haha]..... but me and others who dole out millions of baht in tax!

How about our rights?????!!!

Edited February 16, 2014 by Blackmirage2013

[Old Man River]

The damage is done. This is only to rectify the situation and pay restitution for A CRIME COMMITTED.

This in NO WAY relieves Yingluck of her crime of bribing farmers to vote for Pueu Thai in exchange for higher than market priced rice AT THE TAXPAYERS EXPENSE.

Perhaps the farmers have all forgotten that the only reason they get prime prices for their rices is because WE, THE HARD WORKING TAXPAYER makes it possible.... Not them, not the rich Thais who pay no taxes, not the poor people who think tax is thumb tacks [haha]..... but me and others who dole out millions of baht in tax!

How about our rights?????!!!

Everyone has rights (or should have).

The majority of tax paid comes from VAT. The rich and poor alike pay taxes.

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[pmugghc]

I missed the part where Abhisit was democratically voted in by the people.....when was that?

Garbage comment. Abhisit was voted in as a Democrat party-list MP. The PM is elected by the MPs, not directly by the voters. So when he became PM it was by MPs forming a coalition.

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Edited February 16, 2014 by pmugghc

[Publicus]

" In a bid to secure funding, caretaker Finance Minister Kittiratt Na-Ranong issued a letter of guarantee to both state-owned banks assuring them that the ministry would take responsibility for interest costs and principal incurred from the loan. "

" He suspected that the borrowing could violate Section 181 (4) of the constitution, which bars the caretaker government from using state agencies’ resources to boost its electoral support. "

​Indeed, it can't be done. The EC has said no. The NACC has said no. The constitution says no. This administration does not have legislative power. Issuing a letter of guarantee on behalf of the ministry is something the administration cannot do, because as they are in a caretaker capacity the ministry isn't empowered to guarantee the loan and they aren't empowered to commit any future government ministry to guarantee the loan. If the administration was too busy to attend to this two months before dissolving parliament, they cannot constitutionally do it now. No matter how many times Kittirat is told this, the more he doesn't hear. The NACC's file on the rice scandal is very thick, and Kittirat's latest move accentuates the administration's precarious constitutional stance even more. This is a programme that has lost hundreds and hundreds of billions of baht. How in the world can a letter of guarantee - which the administration cannot legally tender - convince any bank that still wants to attract customers and investment that the loans have any hope of ever getting paid ? And yes, there is still an election under way. And yes, the constitution has not been suspended or kept on hold. The farmers should have been paid long ago. They should be paid now. But not through unconstitutional means.

Do you think or believe Suthep's "People's Council" would do any better than you see the interim government doing in this matter or in general?

[473geo]

There should be laws in place that forces the government to be fiscally discipline. Borrowing money for a scheme that is not financially viable is a disaster, and puts a burden on tax payers. This would put a stop to populist policies for buying votes.

Strange I was not aware the large agricultural subsidies in Europe and the USA are not to facilitate a stronger stable economy, but financially viable vote buying?

The ones in the US and EU don't seem as riddled with government fraud and corruption either.

'Don't seem'.......you mean rarely exposed?

As this was

"Background

1999 was a critical year in the history of the EU for fraud. It saw the mass resignation of the Santer Commission, following a series of scandals (culminating in a nepotism row involving the former French prime minister and then EU Commissioner, Edith Cresson). Fraud only played a part in this, but an investigation by 'five wise men' from the European parliament condemned the Commission collectively for 'loss of control' over the budget."

Of course this doesn't make the siphon of government funding legal or excusable, but let us acknowledge the existance rather than attempting to take some form of moral high ground

[thesetat2013]

So, as stated the delays in paying the farmers was down to the anti-government protesters as confirmed by the GSB labour union head Likit Klinthanom. Perhaps the farmers will think again about approaches from the ever slippery suthep and his sheeple.

Sent from my i-mobile IQ 5 using Thaivisa Connect Thailand mobile app

Oh please! 17 billion out of a 130 billion baht doesn't satisfy many does it. And the country is still burdened with a massive debt from the government's ineptitude and corruption.

Why dont you do a bit of research before posting? Thailands national debt as a percentage of GDP is well below most European countries, The US and Japan. 130 bn baht is 2.5bn quid. A drop in the ocean in terms of world economics and the Isaan has boomed as a result.

So its ok for you that 1.4 MILLION farmers are suffering so much that some have even killed themselves in shame as long as it made Isaan prosperous. You are a sick individual!

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[473geo]

I missed the part where Abhisit was democratically voted in by the people.....when was that?

Garbage comment. Abhisit was voted in as a Democrat party-list MP. The PM is elected by the MPs, not directly by the voters. So when he became PM it was by MPs forming a coalition.

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I accept your point regarding Abhisit as an individual, however we must agree to differ on the emergence of Abhisit as a PM, being brought about by the electorate, or an alternative methodology.

[Old Man River]

" In a bid to secure funding, caretaker Finance Minister Kittiratt Na-Ranong issued a letter of guarantee to both state-owned banks assuring them that the ministry would take responsibility for interest costs and principal incurred from the loan. "

" He suspected that the borrowing could violate Section 181 (4) of the constitution, which bars the caretaker government from using state agencies’ resources to boost its electoral support. "

​Indeed, it can't be done. The EC has said no. The NACC has said no. The constitution says no. This administration does not have legislative power. Issuing a letter of guarantee on behalf of the ministry is something the administration cannot do, because as they are in a caretaker capacity the ministry isn't empowered to guarantee the loan and they aren't empowered to commit any future government ministry to guarantee the loan. If the administration was too busy to attend to this two months before dissolving parliament, they cannot constitutionally do it now. No matter how many times Kittirat is told this, the more he doesn't hear. The NACC's file on the rice scandal is very thick, and Kittirat's latest move accentuates the administration's precarious constitutional stance even more. This is a programme that has lost hundreds and hundreds of billions of baht. How in the world can a letter of guarantee - which the administration cannot legally tender - convince any bank that still wants to attract customers and investment that the loans have any hope of ever getting paid ? And yes, there is still an election under way. And yes, the constitution has not been suspended or kept on hold. The farmers should have been paid long ago. They should be paid now. But not through unconstitutional means.

Do you think or believe Suthep's "People's Council" would do any better than you see the interim government doing in this matter or in general?

Nobody knows. What is known is that the current government's programs have not been stellar.

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[thesetat2013]

You lot don't seem to get it, the GSB Director has said :

BANGKOK: -- Government Savings Bank director Worawit Chailimpamontri admitted this afternoon that the bank had agreed to extend 20 billion baht inter-bank loan to the Bank of Agriculture and Agricultural Cooperatives in order to improve the latter’s liquidity.

Speaking at a press conference held this afternoon at the GSG’s head office, Mr Worawit said that the loan which was endorsed by the board in January was a normal transaction because the bank had surplus liquidity to be extended. He admitted that only five billion baht had been transferred to BAAC on February 13 and not nine billion baht as widely speculated.

He denied that the loan was meant to support the rice pledging scheme and it was extended in the form of P/N payable within three months.

The loan is NOT meant to support the rice pledging.

Therefore is NOT meant to be paid to the farmers.

Cant be clearer than that.

Hehee! That is why the BAAC union is having a meeting and is planning to hold rhe signers of this deal personally accountable and has stated this money only purpose was to help pay the farmers for the rice scheme.

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[Local Drunk]

Economy: Hi doctor, I've been brutally gang raped by hundreds of well endowed men that I can't identify. I'm bleeding to death from every orifice.

Doctor: Here's two aspirin... call me in the morning.

[thhMan]

Damn... I left home to get away from such stupidity..... Only goes to show how stupid I am

[SOTIRIOS]

The borrowed cash should relieve pressure on the government for at least a month, as the BAAC usually has the capacity to process payments of two billion to three billion baht per week...

...so where has all this money been going....???

[Robby nz]

Amazing how the reds have come out in such force this evening on this and other topics.

Most of their posts unfortunately have been designed to divert or distort the subject, which is :

The loan or loans from the GSB to the BAAC.

When all the statements from various officials are combined there would seem to be some doubt as to whether there is only one loan of 20 billion or another of 17 billion as well.

The GSB director has said the 20 billion is not supposed to be to pay the farmers rather to shore up the BAAC's sagging liquidity but what will actually happen once the money gets into the BAAC is another thing.

Kitteratt has it seems given a guarantee that the loan will be paid back with interest within or at 90 days.

Given that there should be a new Govt in power at that time this is obviously putting a burden of repayment on that Govt, something we have been told is against the law, constitution, whatever.

It remains to be seen come tomorrow whether any of the farmers get paid and if they do which ones get paid and how much.

In the mean time the lady has told me she has to go out early tomorrow to a local meeting of all those with money in the GSB to talk about getting their money out.

[jpeg]

If you read the article, it is an 'inter-bank' loan and such matters carry little or no risk. Given that, what is the Union President's agenda? Does he want the farmers to be paid or not? You can argue over the viability of farm subsidies but the fact is that the debt is due and owing. The government isn't going to go bankrupt by paying the farmers.

Anand disagrees.

[Thait Spot]

Amazing how the reds have come out in such force this evening on this and other topics.

Most of their posts unfortunately have been designed to divert or distort the subject, which is :

The loan or loans from the GSB to the BAAC.

When all the statements from various officials are combined there would seem to be some doubt as to whether there is only one loan of 20 billion or another of 17 billion as well.

The GSB director has said the 20 billion is not supposed to be to pay the farmers rather to shore up the BAAC's sagging liquidity but what will actually happen once the money gets into the BAAC is another thing.

Kitteratt has it seems given a guarantee that the loan will be paid back with interest within or at 90 days.

Given that there should be a new Govt in power at that time this is obviously putting a burden of repayment on that Govt, something we have been told is against the law, constitution, whatever.

It remains to be seen come tomorrow whether any of the farmers get paid and if they do which ones get paid and how much.

In the mean time the lady has told me she has to go out early tomorrow to a local meeting of all those with money in the GSB to talk about getting their money out.

It remains to be seen that there is another full government in a month or even 3.

My take on what the EC is saying is that until the general election is 100% complete that party list candidates cannot be allocated so the 95% conundrum could hinge on one constituency in the south not being completed

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[Prbkk]

Good. The farmers will get paid as we all knew they would. Great pity it has taken so long

[473geo]

Amazing how the reds have come out in such force this evening on this and other topics.

Most of their posts unfortunately have been designed to divert or distort the subject, which is :

The loan or loans from the GSB to the BAAC.

When all the statements from various officials are combined there would seem to be some doubt as to whether there is only one loan of 20 billion or another of 17 billion as well.

The GSB director has said the 20 billion is not supposed to be to pay the farmers rather to shore up the BAAC's sagging liquidity but what will actually happen once the money gets into the BAAC is another thing.

Kitteratt has it seems given a guarantee that the loan will be paid back with interest within or at 90 days.

Given that there should be a new Govt in power at that time this is obviously putting a burden of repayment on that Govt, something we have been told is against the law, constitution, whatever.

It remains to be seen come tomorrow whether any of the farmers get paid and if they do which ones get paid and how much.

In the mean time the lady has told me she has to go out early tomorrow to a local meeting of all those with money in the GSB to talk about getting their money out.

Why would anybody want to take their money out of a bank that has just struck a rewarding short term loan deal?

[djjamie]

So this will buy some time. Then what happens?

The NACC will impeach yingluck and 15 more minsters for corruption.

[djjamie]

Amazing how the reds have come out in such force this evening on this and other topics.

Most of their posts unfortunately have been designed to divert or distort the subject, which is :

The loan or loans from the GSB to the BAAC.

When all the statements from various officials are combined there would seem to be some doubt as to whether there is only one loan of 20 billion or another of 17 billion as well.

The GSB director has said the 20 billion is not supposed to be to pay the farmers rather to shore up the BAAC's sagging liquidity but what will actually happen once the money gets into the BAAC is another thing.

Kitteratt has it seems given a guarantee that the loan will be paid back with interest within or at 90 days.

Given that there should be a new Govt in power at that time this is obviously putting a burden of repayment on that Govt, something we have been told is against the law, constitution, whatever.

It remains to be seen come tomorrow whether any of the farmers get paid and if they do which ones get paid and how much.

In the mean time the lady has told me she has to go out early tomorrow to a local meeting of all those with money in the GSB to talk about getting their money out.

Why would anybody want to take their money out of a bank that has just struck a rewarding short term loan deal?

Read my comment above for the answer.

[BlueNoseCodger]

Amazing how the reds have come out in such force this evening on this and other topics.

Most of their posts unfortunately have been designed to divert or distort the subject, which is :

The loan or loans from the GSB to the BAAC.

When all the statements from various officials are combined there would seem to be some doubt as to whether there is only one loan of 20 billion or another of 17 billion as well.

The GSB director has said the 20 billion is not supposed to be to pay the farmers rather to shore up the BAAC's sagging liquidity but what will actually happen once the money gets into the BAAC is another thing.

Kitteratt has it seems given a guarantee that the loan will be paid back with interest within or at 90 days.

Given that there should be a new Govt in power at that time this is obviously putting a burden of repayment on that Govt, something we have been told is against the law, constitution, whatever.

It remains to be seen come tomorrow whether any of the farmers get paid and if they do which ones get paid and how much.

In the mean time the lady has told me she has to go out early tomorrow to a local meeting of all those with money in the GSB to talk about getting their money out.

It remains to be seen that there is another full government in a month or even 3.

My take on what the EC is saying is that until the general election is 100% complete that party list candidates cannot be allocated so the 95% conundrum could hinge on one constituency in the south not being completed

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Except EC has no legal basis for withholding the result. The Constitution requires they announce it. So the "we won't tell you who won until 100% of seats have voted because [excuse]" is against their duty under the Constitution!

Section 236. The Election Commission shall have the following powers and duties:

(7) to announce the result of an election and the voting in a referendum;

I sort of expect the EC to try to throw the 23rd Feb elections he way they failed to register candidates and failed to send ballots and failed to clear polling stations....