BAAC halts paying farmers with its 5 billion baht inter bank loan

[webfact]

BAAC halts paying farmers with its 5 billion baht inter bank loan



BANGKOK: -- President of the Bank of Agriculture and Agricultural Cooperatives (BAAC) Luck Wajananawat said late today that the bank would cease paying farmers with the inter bank loan and to return it to the Government Savings Bank (GSB).

Mr Luck revealed latest movement by the bank following threat by its union and also rush to withdrawal money from the GSB after news that BAAC sought the loan to support the rice-pledging scheme.

Mr Luck said that the bank would cease the spending of the loan it received from GSB and would return it to the bank.

He said that the loan was secured by the Finance Ministry to relieve the plight of the farmers, and stressed that the BAAC has no intention to use its customers’ deposits to pay farmers.

He insisted of sufficient liquidity of the bank and said the rice loan was sought from the ministry and was obtained from the sale of rice by the Commerce Ministry.

He recalled that in January, the bank obtained rice money amounted to 10 billion baht to pay farmers, while this month it received almost 6.3 billion baht.

He believed that after this month, the bank would receive 8-10 billion baht a month to pay farmers.

He said he would meet the finance minister to seek his clear-cut advice on the spending of the interbank loan.

Source: http://englishnews.thaipbs.or.th/baac-halts-paying-farmers-5-billion-baht-inter-bank-loan/


-- Thai PBS 2014-02-17

[Thait Spot]

The government has painted itself into a corner of about a square micron in size

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[zydeco]

And the other shoe drops.

[Why ask]

Oh Dear!

[petedk]

I don't get it.

The headline says

BAAC halts paying farmers with its 5 billion baht inter bank loan

but it goes on to say that the bank recieved money from the government to pay the farmers.

Simple question: Are they going to be paid or not?

[mrtoad]

what a bunch of clowns

[JesseFrank]

Woosh, again no ice cream for the farmers as promised.

[Why ask]

I wonder where this 5 Billion is going? ......... Back? Me nought thinks.

Edit: My apologies, has gone today. (past tense, my bad)

Edited February 17, 2014 by Why ask

[3NUMBAS]

they heap more pain on the farmers who already have little to spare ,dont they realise theyre gonna devastate the rice farming community and it will be hard to reinstate ,,farmers kids are already reluctant to take over when the parents die and wouldn't dream of taking up farm work and getting their hands dirty .

[aussieinthailand]

Let the farmers charge the bank interest for unpaid monies to them and see how that fly's

The BAAC is obliged and lawfully required to pay farmers for their rice, fact, end of story, get on with it and stay out of politics,

Imagine if you had interest owing you money on deposits and the bank refused to pay it,,, reckon you would be just a little p*ssed-off yeah...

[webfact]

Delays in BAAC spending Bt5 bln borrowed from Govt Savings Bank to pay farmers; concern over impact, to discuss solutions with Finance Ministry first /MCOT

Depositors w/drew Bt10mn in 1hr from Govt Saving Bank in Trang; afraid bank will use deposits to pay rice subsidy to farmers /The Nation

[Why ask]

• This is time for rush! The ghost has appeared.

[JesseFrank]

Probably BAAC realised a bit late that from a one time 5 Billion loan, you can't pay out 4 Billion a day for the next 7 days, as claimed by the governmemt.

[Scamper]

" He said that the loan was secured by the Finance Ministry to relieve the plight of the farmers, and stressed that the BAAC has no intention to use its customers’ deposits to pay farmers. "

This is Kittirat's ticket to impeachment. Today's drama has been stunning just in itself. Revelations that GBS was duped into offering an interbank loan to BAAC under the pretext of a simple boost in their liquidity - has instead been used to prop up the rice scheme - something for which Kittirat is expressly forbidden from doing under the constitution. His " letter of comfort " has now come back, because in so issuing it, he assumed responsibility for the guarantee of such a loan, which he is constitutionally unempowered to do. A few things have got in the way of Kittirat's unconstitutional gambit, however. GBS have now gone public with the scam, GBS's unions have expressed pure outrage, and the customers are withdrawing their capital en masse. And so - the big announcement today that 4 billion baht would suddenly materialize each day for a month was stopped - within a matters of hours - as the cracks in it have become as wide and gaping as the Grand Canyon. Together with the announcement of the Yingluck administration that there exists in Thailand " fake farmers " - has made today the worst day for the Yingluck administration on record.

And that's saying a lot.

[thesetat2013]

Wow! And just when YL and the finance ministry guaranteed the farmers would be paid in full within a month. I believe this has put a huge dent in YLs plans. Im sure she thought she could use this loophole to get the money she promised. Its a darn shame the GSB prez lied initially that this money was not to be used for the rice scheme and was for liquidity only.

When will these people see that lying is not an option.

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[zydeco]

they heap more pain on the farmers who already have little to spare ,dont they realise theyre gonna devastate the rice farming community and it will be hard to reinstate ,,farmers kids are already reluctant to take over when the parents die and wouldn't dream of taking up farm work and getting their hands dirty .

Who is "they?" If you mean the banks, why should they endanger their existence, their employees' jobs, and their depositors' money? If you mean the PTP government, whatever they were thinking has turned into a calamity. Bottom line: someone must pay. From the stats I saw on the income among farmers participating in the rice scam, the vast majority were classified as "rich," a significant as "middle income," and less than 20 percent as "poor." So, yes, let's do send full payment to the "poor" farmers, perhaps 40-50 percent of due payment to the "middle" and zero for the "rich," especially since the Red supporters on this board are so worried about the "rich" elites stealing money and getting away with it.

[Red Snake]

Now the farmers can see who the real enemy is. Not the government but while you know who. They will attack this post very soon.

[h90]

I don't get it.

The headline says

BAAC halts paying farmers with its 5 billion baht inter bank loan

but it goes on to say that the bank recieved money from the government to pay the farmers.

Simple question: Are they going to be paid or not?

"Luck Wajananawat said late today that the bank would cease paying farmers with the inter bank loan and to return it to the Government Savings Bank (GSB)."

That is pretty clear....My interpretation of it is that they give back that loan and only pay out what money comes in per month...which is far too less.

But on the other hand I might be complete wrong with it.

[englishoak]

Doesnt anyone just do their job anymore here without messing things up and sticking thier noses in anothers pile of dung ? ... <deleted> does it have to do with the BAAC where the money comes from surely they are charged with paying the farmers and thats it... you got some bloody money now pay some farmers with it... jesus if its a f up by the gov let them get crucified for it and not the poor farmers.

<deleted> use the money to pay the farmers now you have it.... these people in these pin head depts dont give a crap about those they are supposed to be helping its all political...

Boy are we seeing one screwed up system and country ive never seen anything like it here all at once in so many depts ... its like watching someone having seizures, on purpose.

[AleG]

So in one hand we have the BAAC president saying that the loan is to pay the debt to the farmers:

BANGKOK: -- President of the Bank of Agriculture and Agricultural Cooperatives (BAAC) Luck Wajananawat said late today that the bank would cease paying farmers with the inter bank loan and to return it to the Government Savings Bank (GSB).

Mr Luck revealed latest movement by the bank following threat by its union and also rush to withdrawal money from the GSB after news that BAAC sought the loan to support the rice-pledging scheme.

Mr Luck said that the bank would cease the spending of the loan it received from GSB and would return it to the bank.

He said that the loan was secured by the Finance Ministry to relieve the plight of the farmers, and stressed that the BAAC has no intention to use its customers’ deposits to pay farmers.

On the other hand the GBS director saying that the loan is not to pay the debt to the farmers:

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.

Flip-the-flippity-flop, white lies and no transparency, and some here ask why people lose confidence in the bank and try to cash in their deposits.

[JetsetBkk]

Mr Luck said that the bank would cease the spending of the loan it received from GSB and would return it to the bank.

Mr Luck? All bad, methinks - for himself and the farmers.

[casualbiker]

Let the farmers charge the bank interest for unpaid monies to them and see how that fly's

The BAAC is obliged and lawfully required to pay farmers for their rice, fact, end of story, get on with it and stay out of politics,

Imagine if you had interest owing you money on deposits and the bank refused to pay it,,, reckon you would be just a little p*ssed-off yeah...

Nope, wrong as wrong could be.

The government are obliged to give their intermediary (BAAC) the money for said intermediary to pay to the farmers. IF the government do not transfer money to BAAC then the farmers can not get paid.. FACT end of story!

Do stop blaming the BAAC of irregularities when the PTP government are the ones at fault and they are the one's who should owe the interest, and yes i would be a little pissed off!

[slapout]

The bank is most likely completly confused as to the criteria to use for payout.

The suggestions have been, first come first served, in order of receipt of worthless paper for rice, Chiang Mai first, those in dire need first, families of those who killed themselves, etc. The one given seems that the farmers who were paid today, got about 1/2 of what was owed them.

It seems that the entire caretaker government is in panic mode, shock at their perdictment, thus they appear completely unable to function at a worable level. For the sake of the country get someone on the 'Bridge' who can dock this vessel, confine the incompentant lot of them to quarter, and turn them over to the proper authorties to answer charges against them. Just make sure the bozos at DSI and the Labor and Foreign Ministers are put in padded cells for the protection of others.

[fatdrunkandstupid]

Woosh, again no ice cream for the farmers as promised.

http://www.youtube.com/watch?v=OrIRxx2J_2Q

[casualbiker]

Doesnt anyone just do their job anymore here without messing things up and sticking thier noses in anothers pile of dung ? ... <deleted> does it have to do with the BAAC where the money comes from surely they are charged with paying the farmers and thats it... you got some bloody money now pay some farmers with it... jesus if its a f up by the gov let them get crucified for it and not the poor farmers.

<deleted> use the money to pay the farmers now you have it.... these people in these pin head depts dont give a crap about those they are supposed to be helping its all political...

Boy are we seeing one screwed up system and country ive never seen anything like it here all at once in so many depts ... its like watching someone having seizures, on purpose.

Well it's the BAAC that have to pay the interest on said money.

The interbank transfer is just that, interbank !

why don't the PTP government just use the money earmarked from the budget.. oh they can't because they dissolved parliament.. but hey in the same context of your <deleted> .

For <deleted> the PTP government made this mess why don't they use the budget that was set aside and just pay the farmers and worry about criminal charges later?

[bkkjames]

Doesnt anyone just do their job anymore here without messing things up and sticking thier noses in anothers pile of dung ? ... <deleted> does it have to do with the BAAC where the money comes from surely they are charged with paying the farmers and thats it... you got some bloody money now pay some farmers with it... jesus if its a f up by the gov let them get crucified for it and not the poor farmers.

<deleted> use the money to pay the farmers now you have it.... these people in these pin head depts dont give a crap about those they are supposed to be helping its all political...

Boy are we seeing one screwed up system and country ive never seen anything like it here all at once in so many depts ... its like watching someone having seizures, on purpose.

Well it's the BAAC that have to pay the interest on said money.

The interbank transfer is just that, interbank !

why don't the PTP government just use the money earmarked from the budget.. oh they can't because they dissolved parliament.. but hey in the same context of your <deleted> .

For <deleted> the PTP government made this mess why don't they use the budget that was set aside and just pay the farmers and worry about criminal charges later?

that last part was rhetorical right?

[Why ask]

Doesnt anyone just do their job anymore here without messing things up and sticking thier noses in anothers pile of dung ? ... <deleted> does it have to do with the BAAC where the money comes from surely they are charged with paying the farmers and thats it... you got some bloody money now pay some farmers with it... jesus if its a f up by the gov let them get crucified for it and not the poor farmers.

<deleted> use the money to pay the farmers now you have it.... these people in these pin head depts dont give a crap about those they are supposed to be helping its all political...

Boy are we seeing one screwed up system and country ive never seen anything like it here all at once in so many depts ... its like watching someone having seizures, on purpose.

Would you pay your neighbours mortgage, if he asked for your neighbourly help, and said "I promise you, if I can't pay you back what I ask to borrow from you, you can have my car worth the same amount you lend me." (when the car hasn't been paid off too!!!) ???

The ones having seizures are the gits in PTP who siphoned off the money in the whole big scam. Are you waking up yet?

[casualbiker]

Now the farmers can see who the real enemy is. Not the government but while you know who. They will attack this post very soon.

I don't know who! who is who?

If the government have no funds to pay the farmers because of ineptitude (both in the scheme and dissolving parliament) who exactly is at fault?

ahhh ok here is a picture of The WHO is at fault!

[uty6543]

Another nail in Taksin's government coffin.

[aimbc]

I wish the YS govt. stop playing games with the lives of the farmers and the future of Thailand. Enough already, come clean with the policy. Stop taking photo op at the warehouse saying the rice is in good condition. A lot are not and they know it. Everyone wants to help the farmers, but the YS govt. must open up the policy for public review. This is not a national security issue. Maybe a criminal issue. That is why they are not revealing the information. Sell all the rice first or take inventory of all the rice, in detail, but by an independent agency. Assess what is left that is sellable and then we can help the farmers. Until the government does that, there is no use trying to help, because we don't even fully understand the problem. Throwing money at it is like throwing it into a fire. The taxpayers paid for the rice and is expected to know what happened to the rice. No one here is stupid enough to buy something and then pay more to get it. It just doesn't make sense. The rice is there!