Thailand: GSB, BAAC unions protest loan to pay rice farmers

[JesseFrank]

We shall see telecom i went past a BKK branch about two hrs ago and it had no one outside.... that does just look like a normal Monday in many banks.

Two hours ago that bank was still closed

[Suriya4]

We shall see if theres a run or not, im betting (hoping ) nothing will happen . Unless it goes viral on facebook of course and then it could be doomsday is coming in an avalanche to a bank near you very soon.

As I said the other week why take the risk with any thai banks in this climate of scaremongering and bs ? ive been out of Thai banks apart from operating funds and a sleeper amount in thai banks of a few thousand losable baht just to keep them open for about a month now.

We shall see if theres a run or not, im betting (hoping ) nothing will happen.

Well that was one bet you will be losing.

Yes.... It is going viral with one story on front page of sanook.com of one person already withdrawn their 58 million deposit.

Yes.... it is going very viral on the social networks, forums and Thai sites.

This is the start of the snowball effect that ruined the Northern Rock... It was done damage by investing in the US sub-prime mortgage scam, but it was the run on the bank when the news broke that bankrupted them to the point they needed to borrow billions from the government.

It starts with a few, and those who were not going to withdraw start to panic when they see the run and so they join the queue. It is the snowball effect that kills the bank.

Let's just say, I bet there are some huge regrets building up with certain bank officials.

My son have an account.

Not a lot of Money.

I think I will ask him to close it TODAY before all the money is gone.

[animatic]

We shall see if theres a run or not, im betting (hoping ) nothing will happen . Unless it goes viral on facebook of course and then it could be doomsday is coming in an avalanche to a bank near you very soon.

As I said the other week why take the risk with any thai banks in this climate of scaremongering and bs ? ive been out of Thai banks apart from operating funds and a sleeper amount in thai banks of a few thousand losable baht just to keep them open for about a month now.

We shall see if theres a run or not, im betting (hoping ) nothing will happen.

Well that was one bet you will be losing.

Yes.... It is going viral with one story on front page of sanook.com of one person already withdrawn their 58 million deposit.

Yes.... it is going very viral on the social networks, forums and Thai sites.

This is the start of the snowball effect that ruined the Northern Rock... It was done damage by investing in the US sub-prime mortgage scam, but it was the run on the bank when the news broke that bankrupted them to the point they needed to borrow billions from the government.

It starts with a few, and those who were not going to withdraw start to panic when they see the run and so they join the queue. It is the snowball effect that kills the bank.

Let's just say, I bet there are some huge regrets building up with certain bank officials.

My son have an account.

Not a lot of Money.

I think I will ask him to close it TODAY before all the money is gone.

That in a nutshell shows how much trust this government has at the grass roots level of the average Thai citizen.

Suryia4 no need to completely close the account.

The bank will be eventually be solvent after this debacle is over and the one of the future governments finally pays back the loans. It is presently solvent, baring a run on the bank from people freaking out. So just remove what you don't want to risk, if you must, and keep it open for the future with enough left in to not have to pay fees for too low a balance.

That there is much talk of runs on the banks giving the Shin Government loans,

tells a sad story of mismanagement, and absence of trust in policy, planning and actualisation.

Edited February 17, 2014 by animatic

[JesseFrank]

We shall see telecom i went past a BKK branch about two hrs ago and it had no one outside.... that does just look like a normal Monday in many banks.. any idea of the branch or the date of that pic ?

It seems they were all at the Trang branch

Public rush to withdraw cash from Government Saving Bank, Trang branch, Bt10 million in 1 hour; fearing bank will use deposits for farmers rice payment /MCOT

[telecom]

We shall see if theres a run or not, im betting (hoping ) nothing will happen . Unless it goes viral on facebook of course and then it could be doomsday is coming in an avalanche to a bank near you very soon.

As I said the other week why take the risk with any thai banks in this climate of scaremongering and bs ? ive been out of Thai banks apart from operating funds and a sleeper amount in thai banks of a few thousand losable baht just to keep them open for about a month now.

We shall see if theres a run or not, im betting (hoping ) nothing will happen.

Well that was one bet you will be losing.

Yes.... It is going viral with one story on front page of sanook.com of one person already withdrawn their 58 million deposit.

Yes.... it is going very viral on the social networks, forums and Thai sites.

This is the start of the snowball effect that ruined the Northern Rock... It was done damage by investing in the US sub-prime mortgage scam, but it was the run on the bank when the news broke that bankrupted them to the point they needed to borrow billions from the government.

It starts with a few, and those who were not going to withdraw start to panic when they see the run and so they join the queue. It is the snowball effect that kills the bank.

Let's just say, I bet there are some huge regrets building up with certain bank officials.

My son have an account.

Not a lot of Money.

I think I will ask him to close it TODAY before all the money is gone.

That in a nutshell shows how much trust this government has at the grass roots level of the average Thai citizen.

Suryia4 no need to completely close the account.

The bank will be eventually be solvent after this debacle is over and the one of the future governments finally pays back the loans. It is presently solvent, baring a run on the bank from people freaking out. So just remove what you don't want to risk, if you must, and keep it open for the future with enough left in to not have to pay fees for too low a balance.

That there is much talk of runs on the banks giving the Shin Government loans,

tells a sad story of mismanagement, and absence of trust in policy, planning and actualisation.

Better to close the account to as to send a strong message to the bank and the government.

Englishoak wants to tune into MCOT TV whee they are showing the banks being hit hard.

One branch in the south had 10 million removed in the first hour alone. This is big breaking news.

If the bank just closes their branches, and lock the people out from their money, they will have to open them doors again, it won't calm anyone down, it will in fact enrage them and even more people will be determined to close their accounts.

Once a rush starts, it only drags even more people into the mayhem.

If the GSB loses 10% of its deposits, then they lose all their liquidity, if the lose 20% of its deposits, it is broke. That's how it works.

That will mean this government is responsible for the collapse of a huge bank on top of the collapse of the rice scheme and the collapse of the rice industry with farmers already understanding that next year's harvest will be planted at a loss.

And still they cling to power and still they get supported by the farang who married into red shirt families.

[englishoak]

We shall see telecom i went past a BKK branch about two hrs ago and it had no one outside.... that does just look like a normal Monday in many banks.

Two hours ago that bank was still closed

Banks open 8:30 for normal branches… 11:33 - 2 hours = 9:33.

That said, the branch Englishoak went past may have been the only one nobody has any deposits in

I was going to ask if GSB was a part time bank or opens at different times mine opens at 8.30 lol i go every Monday about 9am and pass a GSB, i wish id bothered looking inside now but no one was on the pavement.

Sorry dont have time for the TV in the daytime at work, thought people would be interested in what id seen or not seen at the branch i passed

Don't panic telecom ( mr mannering ) there will just be a banking holiday if it gets too bad. They can also block any withdrawals or restrict them, settle down watch the show and leave the emotion at the door, its a government bank its very unlikely to go pop. Id be more concerned about the private commercials having a knock on effect than GSB.

10m btw is nothing unless its cash then it may hamper the daily cash funds available. I'll catch up later

[Yunla]

Next... A run on the banks. Could it get any worse? Is this all part of a grand design for total anarchy?

Imho Thaksin has a psychosis about returning to Thailand as a powerful figure who is free of the shackles of his earlier criminal charges and those charges which are still pending, including the 'misspending' of billions forom the Thai State fund, and also humanitarian atrocities such as ordering mass-executions of 2500 largely innocent and completely un-prosecuted victims. He knows he doesn't have a chance if he returns to Thailand while there is a functioning and financially-stable State in place. In my opinion he has been seeking and creating intentional destabilisation of this nation including the financial sector for a long time.

This also chimes with his history as Asia head of CG, a company that made monolithic profits from the aftermath of the invasion of Iraq which some of their senior members helped to orchestrate in the first place. CG was the main benefactor among backers of the military hardware companies involved in Iraq, and also in the post-invasion building of fourteen US bases there, and also with the plunderous post-war dealings. CG could not have made any of those trillions in blood-money if there had been a stable sovereign Iraq, it only became possible after the nation was destabilised and groups of lawless warlords took over in the vacuum. This same destabilisation / plundering process has occured around the world, and Thaksin's "former" employer CG has played roles in most of them, either covertly or overtly (as in Iraq). These people are supernational sharks, they play grand games with the lives of millions and the stability of nations for financial gain. Anarchy and imploding banking systems are their quintessential forte and their tell-tale greasy pawprints. I look at the eroding stability in Thailand and the pressure being put on everything from small businesses to banks, as something that could only come about through gargantuan ineptitude, or through intentional corrosion.

[CWMcMurray]

Wife has account with GSB and says she plans to go close her account tomorrow...

Don't think that there will be any large scale run on the bank, but there will be a number if customers that close their accounts with GSB

Nothing wrong with that... Perfectly acceptable for customers to take their business elsewhere if they do not agree with how the bank is doing things

Don't think it would cause any major damage to the bank over all, but even in the worst case... If there was a major run on GSB and it caused this bank to fail, don't think it would cause the destruction of the Thai economy in any way.

It would just cause this bank to go under and then other banks would come in to buy up its parts

As the run would not be widespread or felt by any other banks, and is not due to any lack of trust of the banking system... Should not have any serious effect on economy as a whole

Although at the end of the day, don't really believe that the total loss of customers will be enough to put the bank at risk.

Just enough to see a small impact on the bottom line, but as is gov bank, they really don't care about share holders or final bottom line...

Sent from my iPhone using Tapatalk

"Wife has an account"

Sounds about right, were you not on here last week telling us about your wife moving her funds?

Yes had make a post last week (or the week before) talking about this, but at that time no banks had confirmed that they would loan the government so she has not closed any accounts yet.

GSB seems to be the first, so she will be closing this account, although only a small amount in this account, so not really an issue of worrying about loosing it but more of a political statement

Sent from my iPhone using Tapatalk

[CWMcMurray]

Wife has account with GSB and says she plans to go close her account tomorrow...

Don't think that there will be any large scale run on the bank, but there will be a number if customers that close their accounts with GSB

Nothing wrong with that... Perfectly acceptable for customers to take their business elsewhere if they do not agree with how the bank is doing things

Don't think it would cause any major damage to the bank over all, but even in the worst case... If there was a major run on GSB and it caused this bank to fail, don't think it would cause the destruction of the Thai economy in any way.

It would just cause this bank to go under and then other banks would come in to buy up its parts

As the run would not be widespread or felt by any other banks, and is not due to any lack of trust of the banking system... Should not have any serious effect on economy as a whole

Although at the end of the day, don't really believe that the total loss of customers will be enough to put the bank at risk.

Just enough to see a small impact on the bottom line, but as is gov bank, they really don't care about share holders or final bottom line...

Sent from my iPhone using Tapatalk

Problem is if there is a run on GSB, this will cause a knock on and other banks risk the possiblity of runs as well because confidence in the whole banking system is hit, even if they are not involved the great rice scam

Guess it may be possible , but from everything I have read and heard it doesn't seem like anyone is worried about the banking system, just making political point by removing funds

Sent from my iPhone using Tapatalk

[rickirs]

I sadly have to resort to the often plagurized, "This Is Thailand." First the Government is heavily critisized for not paying the farmers; the banks are then ostracized by PDRC for considering loans to the government to pay the farmers; farmers threaten to file suit against the government for not making payments; then Suthepsays it's okay for the banks to make those loans; then the GSB starts to make loans that will go towards paying the farmers; NOW the bank unions wants those loans to stop. Yes, this is thailand where politics is a Merry Go-Round the Mulberry Bush and We All Fall Down. Rather the farmers fall down between competing political forces. My wishes to the farmers that they get their pay in the most direct and immediate manner and politicians stay out of the way.

[AleG]

The fact is that the Rice Scheme is a financial black hole, money goes in and nobody knows what happens then. How much rice in stock, how many tons sold to whom for what price, etc, etc.

Of course depositors will get nervous if their money starts to be channeled into the scheme, it has already run the BAAC dry, now they are looking for a new blood line.

[SICHONSTEVE]

Next... A run on the banks. Could it get any worse? Is this all part of a grand design for total anarchy?

Get your money out would be my recommendation!!!!

If a chairman of a football team say's the manager has his full confidence then that means he will be sacked within the week, guaranteed.

The equivalence in banking parlance is when the boss says there is no need to take your money out...................

Edited February 17, 2014 by SICHONSTEVE

[SICHONSTEVE]

Seems like the panic has started and the lies have started to flow.

He stated only yesterday that they were lending 20 billion at 5 billion a week, now he is just saying 5 billion... Meaning that they have pulled back on the rest of the promised loan because there is a run on the bank.

I am sick of hearing this inter-bank loan crap. This is the government borrowing the money hidden (badly) behind a facade of inter-bank lending. The Finance Ministry has guaranteed the loan and is paying both the interest and the principle, meaning it is them who are doing the borrowing.

When a bank starts lying to its customers, they will withdraw their money, because one lie leads to another, until nobody knows what is true and what is bullshit.... safer to just change banks for one you can trust.

Maybe PTP are leaving behind a poison pill for the next government as they seem intent on destroying everything they touch!!!

Just what are these incompetents going to break next!!

[SICHONSTEVE]

Wife has account with GSB and says she plans to go close her account tomorrow...

Don't think that there will be any large scale run on the bank, but there will be a number if customers that close their accounts with GSB

Nothing wrong with that... Perfectly acceptable for customers to take their business elsewhere if they do not agree with how the bank is doing things

Don't think it would cause any major damage to the bank over all, but even in the worst case... If there was a major run on GSB and it caused this bank to fail, don't think it would cause the destruction of the Thai economy in any way.

It would just cause this bank to go under and then other banks would come in to buy up its parts

As the run would not be widespread or felt by any other banks, and is not due to any lack of trust of the banking system... Should not have any serious effect on economy as a whole

Although at the end of the day, don't really believe that the total loss of customers will be enough to put the bank at risk.

Just enough to see a small impact on the bottom line, but as is gov bank, they really don't care about share holders or final bottom line...

Sent from my iPhone using Tapatalk

Problem is if there is a run on GSB, this will cause a knock on and other banks risk the possiblity of runs as well because confidence in the whole banking system is hit, even if they are not involved the great rice scam

Guess it may be possible , but from everything I have read and heard it doesn't seem like anyone is worried about the banking system, just making political point by removing funds

Sent from my iPhone using Tapatalk

That's the beauty of it, don't you think - worthwhile to see Yingluck squirm that little bit more.

Once a trickle turns into a torrent then only a dam will stop it (I just made that one up)!!

Seriously, once it start it doesn't stop - the chairman of the bank just had a Ratner's moment BTW with his plea of "please don't take your money out"

[spirit47]

Im more worried about prioritys in paying the money through the BAAC. The small farmers must get highest priority, I mean these who really exist...Its hardly to believed that there 28 million rice farmers, and thats the official number of participants of the rice pledging scheme. In this system of patronage, its more propable, that the most money going to the wealthy Taksin friends...

[SICHONSTEVE]

Im more worried about prioritys in paying the money through the BAAC. The small farmers must get highest priority, I mean these who really exist...Its hardly to believed that there 28 million rice farmers, and thats the official number of participants of the rice pledging scheme. In this system of patronage, its more propable, that the most money going to the wealthy Taksin friends...

Nooooooo!! just what made you think of something as damning and unlikely as this. You should apologise to the 'good man' Thaksin for thinking such an excusable thing as this.

[englishoak]

2:30pm well just passed the same GSB branch on the way in again, no one outside about 15 inside.... if theres a run its not reached here in this part of bkk yet.

[p_brownstone]

The only question that depositors should care about here - unless they are being political - is whether or not the funds being loaned to the BAAC are depositors' money or the bank's

And the difference is ...... ?

Patrick

[Beetlejuice]

We shall see if theres a run or not, im betting (hoping ) nothing will happen . Unless it goes viral on facebook of course and then it could be doomsday is coming in an avalanche to a bank near you very soon.

As I said the other week why take the risk with any thai banks in this climate of scaremongering and bs ? ive been out of Thai banks apart from operating funds and a sleeper amount in thai banks of a few thousand losable baht just to keep them open for about a month now.

We shall see if theres a run or not, im betting (hoping ) nothing will happen.

Well that was one bet you will be losing.

Yes.... It is going viral with one story on front page of sanook.com of one person already withdrawn their 58 million deposit.

Yes.... it is going very viral on the social networks, forums and Thai sites.

This is the start of the snowball effect that ruined the Northern Rock... It was done damage by investing in the US sub-prime mortgage scam, but it was the run on the bank when the news broke that bankrupted them to the point they needed to borrow billions from the government.

It starts with a few, and those who were not going to withdraw start to panic when they see the run and so they join the queue. It is the snowball effect that kills the bank.

Let's just say, I bet there are some huge regrets building up with certain bank officials.

I would like to know the real motives of the this telecom poster, why, whoever he or she is, is passing on crap like this? Perhaps the name should be, telecon or telebs?

These unofficial reports are probably published by anti Government political activists in order to cause even more havoc to the Shinawatra regime and to bring down all Government institutions by scaremongering and attempting to bring nationwide panic with BS and hyped up over exaggerated rumours about the Thai Government banking situations. In many instances the ploy works, praying on the minds of the easily influenced and the gullible, who will play a long with the game. In fact these people are taking sides by manipulation without even realising they are being used as pawns in the game of one-upmanship by either one side or the other and by right wing political extremists.

Most of the problems are caused by the media with conflicting and confusing reports, causing tensions among the savers who are trying to make some sense of all this and trying to establish what are the actual facts and what is really involved here plus the possible consequences. The worse offenders are those that publish scaremongering BS in the public domain, that in most cases have no foundation whatever, mostly rumours passed on by armchair experts sitting in front of their computers at home or extremists, which mean nothing. It sometimes gives these people satisfaction of having a voice away from their mundane lifestyles of being non-entities in the real world.

What could cause big problems is if someone of prominence, either in politics, big business or a celebrity starts to give even a hint that the banks are in trouble, than it will be time to panic and if that happens it maybe too late for savers to rush to their banks and grab their savings, it will become a free for all, every man for himself.

In my opinion this state of affairs will eventually sort itself out, unless there are spanners thrown into the works during the process.

My personal opinion is; that all the main Thai banks are secure as the 130 billion baht deficit owed to the farmers is peanuts if thrown in with the treasuries funds. The main problems here is that the Shinawatra regime is no longer in Government but are only caretakers for a Government and therefore do not have the power or authority to tap into the coffers to pay out the farmers with taxpayers money and are therefore seeking other methods to get around this problem, which in this case are the banks. As for corruption and what else maybe involved, I am not going to place myself in a precarious situation and make accusations on an open forum.

All I can suggest is, that those who have concerns should first do their research instead of believing all the crap that is stated on here and at the end of the day it`s up to each individual to decide at the their own discretion.

Edited February 17, 2014 by Beetlejuice

[p_brownstone]

Wife has account with GSB and says she plans to go close her account tomorrow...

Don't think that there will be any large scale run on the bank, but there will be a number if customers that close their accounts with GSB

Nothing wrong with that... Perfectly acceptable for customers to take their business elsewhere if they do not agree with how the bank is doing things

Don't think it would cause any major damage to the bank over all, but even in the worst case... If there was a major run on GSB and it caused this bank to fail, don't think it would cause the destruction of the Thai economy in any way.

It would just cause this bank to go under and then other banks would come in to buy up its parts

As the run would not be widespread or felt by any other banks, and is not due to any lack of trust of the banking system... Should not have any serious effect on economy as a whole

Although at the end of the day, don't really believe that the total loss of customers will be enough to put the bank at risk.

Just enough to see a small impact on the bottom line, but as is gov bank, they really don't care about share holders or final bottom line...

Sent from my iPhone using Tapatalk

Problem is if there is a run on GSB, this will cause a knock on and other banks risk the possiblity of runs as well because confidence in the whole banking system is hit, even if they are not involved the great rice scam

Guess it may be possible , but from everything I have read and heard it doesn't seem like anyone is worried about the banking system, just making political point by removing funds

Sent from my iPhone using Tapatalk

I think the whole problem of a "Run" on a particular Bank is mainly that the cause of the Run is a lack of faith in the whole Banking System.

How many of the people who withdraw their Funds from GSB will simply run next door to Bangkok Bank, KBank - whatever to open a new Account and deposit the same amount?

If you lose faith in the Banking sector, even just one small part of it, the money goes under the mattress or in a hole in the ground at home - or it's spent on goods that you really do not need right now but believe will be far more expensive in the not too distant future.

Patrick

[Thait Spot]

We shall see if theres a run or not, im betting (hoping ) nothing will happen . Unless it goes viral on facebook of course and then it could be doomsday is coming in an avalanche to a bank near you very soon.

As I said the other week why take the risk with any thai banks in this climate of scaremongering and bs ? ive been out of Thai banks apart from operating funds and a sleeper amount in thai banks of a few thousand losable baht just to keep them open for about a month now.

We shall see if theres a run or not, im betting (hoping ) nothing will happen.

Well that was one bet you will be losing.

Yes.... It is going viral with one story on front page of sanook.com of one person already withdrawn their 58 million deposit.

Yes.... it is going very viral on the social networks, forums and Thai sites.

This is the start of the snowball effect that ruined the Northern Rock... It was done damage by investing in the US sub-prime mortgage scam, but it was the run on the bank when the news broke that bankrupted them to the point they needed to borrow billions from the government.

It starts with a few, and those who were not going to withdraw start to panic when they see the run and so they join the queue. It is the snowball effect that kills the bank.

Let's just say, I bet there are some huge regrets building up with certain bank officials.

You must be wrong about this, the MAJORITY of the Thai population support this government and blames Suthep.

Where are Gerry1011, Kikoman and the other red eyed members to confirm this ?

Busy stuffing their savings under the mattress (I'm not suggesting that they share one)

[Thait Spot]

The only question that depositors should care about here - unless they are being political - is whether or not the funds being loaned to the BAAC are depositors' money or the bank's

And the difference is ...... ?

Patrick

The difference being that the bank can risk its own money - and afford to repay depositors

However if it loans depositors' money and they want it back then the GSB will need to loan from yeat another bank.

[Gweiloman]

While the current caretaker government is trying it's best to make up for it's very stupid and costly mistakes under the rice scheme, the protestors who claim that they are the voice of the people are trying their very best to bring down Thailand.

If there is a sustained run on GSB, this might very well have a knock on effect on all other Thai banks. Who will be the eventual winner of all this? Answer: no one

Who will be the biggest loser? Answer: Thailand, and it's people.

So, to the protestors, be careful what you wish for. In trying to oust the Shinawatra's, you might end up bringing down your own country.

[rubl]

While the current caretaker government is trying it's best to make up for it's very stupid and costly mistakes under the rice scheme, the protestors who claim that they are the voice of the people are trying their very best to bring down Thailand.

If there is a sustained run on GSB, this might very well have a knock on effect on all other Thai banks. Who will be the eventual winner of all this? Answer: no one

Who will be the biggest loser? Answer: Thailand, and it's people.

So, to the protestors, be careful what you wish for. In trying to oust the Shinawatra's, you might end up bringing down your own country.

don't blame the government for near criminal financial practises and loosing 400 billion out of 660 spent. Praise them for trying it's best to find a carpet to hide it under.

Better blame the anti-government protesters.

Mind you the anti-government protests seemed to really start when the Yingluck government tried to push through a blanket amnesty bill which even covered Thaksin's last two years in/out of office AND YIngluck's first two years. As if she needed it

Edited February 17, 2014 by rubl

[Beetlejuice]

On the positive side:

“We will only use source of funding to be arranged by the government for payments. Absolutely, we won't use our liquidity to fund the scheme. So, the BAAC will stop paying if the government can't seek enough funds for us,'' said executive vice-president Somsak Kangteerawat.
He said that the bank has already resumed paying farmers after it received money from the Commerce Ministry's rice sales and from the budget recently approved for financing the rice-pledging scheme.
Mr Somsak also said the BAAC no longer needs to offer relief measures to farmers following the government's clear-cut plan on the 130-billion-baht borrowing”

http://www.udonmap.com/udonthaniforum/rice-pledging-is-this-borrow-from-peter-to-pay-paul-t32838.html

Anyone who knows different, please give your sources of information, other than speculative hutches, what someone say`s on a social networking site, from a man in a bar or just because a bank seems busy today.

My contact who is a journalist for the financial section of the Banmuang newspaper in Bangkok, has informed me that all the Thai Government banks are extremely secure, they could sustain major loses that maybe attributed from the rice pledging scheme or if some savers panic and withdraw their funds, if it ever came to that, although would be extremely unlikely. The newspaper has received no information or heard any rumours that the Thai banking system is in trouble. These Government banks are only used as a means of paying Government debts by bonds sourced by the Government guaranteed by the finance ministry, something like a debit system, and guaranteed by the finance ministry that pertains no matter which party gets into power. Also my daughter works for a well-known Thai bank and tells me that it`s business as usual, there are no rumours of any problems.

http://www.banmuang.co.th/

All the banks, worldwide are members of a inter banking loan scheme, it`s just their ways of balancing the books and is normal practice.

As I said previous, there is certainly no need to heed the comments made by the scaremongers and again, has to be up to discretion. In the meantime, I will not be making any spaces under my mattress to store my money just yet.

[Scamper]

This whole thing has exploded within the space of a single day. What had started out as an interbank transaction from GBS to BAAC under the pretext of a mere boost in liquidity, has been used by BAAC for funding the rice scheme - which Kittirat is constitutionally unempowered to do. This scam has exploded within one day, because - as of now - BAAC are returning the monies to GBS together with a statement that BAAC will not be making payments regarding the rice scheme. Why did this unravel so quickly ? Because GBS has come out publicly with the exposing of the administration's scam, the bank union rebelled, and the customers themselves withdrew their capital en masse. So not only is the Yingluck administration back to square one, but they have added new impeachment charges to boot.

[SICHONSTEVE]

This whole thing has exploded within the space of a single day. What had started out as an interbank transaction from GBS to BAAC under the pretext of a mere boost in liquidity, has been used by BAAC for funding the rice scheme - which Kittirat is constitutionally unempowered to do. This scam has exploded within one day, because - as of now - BAAC are returning the monies to GBS together with a statement that BAAC will not be making payments regarding the rice scheme. Why did this unravel so quickly ? Because GBS has come out publicly with the exposing of the administration's scam, the bank union rebelled, and the customers themselves withdrew their capital en masse. So not only is the Yingluck administration back to square one, but they have added new impeachment charges to boot.

Is this a fact Scamper?

Have they recalled the loans? If that is the case, surely Yingluck cannot weather this storm - the farmers are going to go ballistic!!!

This could be the end game moment that will finish her off and set her running. Pray let you be right .

[SICHONSTEVE]

On the positive side:

“We will only use source of funding to be arranged by the government for payments. Absolutely, we won't use our liquidity to fund the scheme. So, the BAAC will stop paying if the government can't seek enough funds for us,'' said executive vice-president Somsak Kangteerawat.

He said that the bank has already resumed paying farmers after it received money from the Commerce Ministry's rice sales and from the budget recently approved for financing the rice-pledging scheme.

Mr Somsak also said the BAAC no longer needs to offer relief measures to farmers following the government's clear-cut plan on the 130-billion-baht borrowing”

http://www.udonmap.com/udonthaniforum/rice-pledging-is-this-borrow-from-peter-to-pay-paul-t32838.html

Anyone who knows different, please give your sources of information, other than speculative hutches, what someone say`s on a social networking site, from a man in a bar or just because a bank seems busy today.

My contact who is a journalist for the financial section of the Banmuang newspaper in Bangkok, has informed me that all the Thai Government banks are extremely secure, they could sustain major loses that maybe attributed from the rice pledging scheme or if some savers panic and withdraw their funds, if it ever came to that, although would be extremely unlikely. The newspaper has received no information or heard any rumours that the Thai banking system is in trouble. These Government banks are only used as a means of paying Government debts by bonds sourced by the Government guaranteed by the finance ministry, something like a debit system, and guaranteed by the finance ministry that pertains no matter which party gets into power. Also my daughter works for a well-known Thai bank and tells me that it`s business as usual, there are no rumours of any problems.

http://www.banmuang.co.th/

All the banks, worldwide are members of a inter banking loan scheme, it`s just their ways of balancing the books and is normal practice.

As I said previous, there is certainly no need to heed the comments made by the scaremongers and again, has to be up to discretion. In the meantime, I will not be making any spaces under my mattress to store my money just yet.

At times like this, normal people don't read the money pages of Thailand's equivalent of the financial times or believe all that useless jargon.

They suck in and digest what's happening on Twitter and Facebook and make a dash before the bank closes!!!

[Melyn]

This whole thing has exploded within the space of a single day. What had started out as an interbank transaction from GBS to BAAC under the pretext of a mere boost in liquidity, has been used by BAAC for funding the rice scheme - which Kittirat is constitutionally unempowered to do. This scam has exploded within one day, because - as of now - BAAC are returning the monies to GBS together with a statement that BAAC will not be making payments regarding the rice scheme. Why did this unravel so quickly ? Because GBS has come out publicly with the exposing of the administration's scam, the bank union rebelled, and the customers themselves withdrew their capital en masse. So not only is the Yingluck administration back to square one, but they have added new impeachment charges to boot.

Is this a fact Scamper?

Have they recalled the loans? If that is the case, surely Yingluck cannot weather this storm - the farmers are going to go ballistic!!!

This could be the end game moment that will finish her off and set her running. Pray let you be right .

I don't think the GSB can call the loans in as they seem to be term instruments.

My understanding is that the borrower BAAC stated that it would return the remaining amount to the lender GSB

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

[Cricketnut]

In this case, the Pheu Thai goons will tell the rice farmers, blame and raid the GSB, BAAC union members

personally the farmers have had it hard enough, someone just pay the poor people for crying out loud and when the government is impeached let them sort out the mess. Or is money more worthy of people killing themselves? Gee people think collectively not fiscally in this case. Money or life which is more important should be the moral of this sad tale not gibbering coming out of a lot of peoples posts. We are talking HUMAN LIVES here not a piece of paper. The banks won't go bust on this I assure you, but peoples lives and their families will. I don't give 2 rats that this is a failed scheme. Its not like any other western country has done, such as the great USofA, Ireland, England, Greece, Argentina, Iceland and countless others that have made HUGE political errors. This does not in no means excuse the current government. Just pay the people. Thailand will rise once more, it will take a long time though.

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