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

[rreddin]

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

Get it right. GSB also had Baht 5 million + deposited - net withdrawals were circa B5 million. BAAC demonstrating once again that they do not care for farmers, who, incidentally are their main customers. In some rural areas, although there may be some ATMs from other banks, the only bank where banking business can be conducted is BAAC and then usually only one branch in each amphoe, so they have no competition. It seems that the BAAC's purpose is to screw the farmer every way they can.

[spirit47]

I would think, the NACC have to control the whole money flow. There are only 18% of the money that going to small farmers, I suggest, they have highest priority to be payed. Now the rice-pledging scheme going on and nobody know, where the money really gone to...

[rreddin]

Seems we now have another twist, the credit agencies are rearing their heads,

According to an official who asked for anonymity, Moody’s Investors Service and Fitch Ratings conducted conference calls with Thai officials last week, to get data needed for the annual review.

On the row between the government and rice farmers, they understood that it is just a "technical" default on debt to farmers as a result of political conflicts.

So the finance ministry has told them that it is the fault of the protesters (political conflict) that the farmers haven't been paid.

Do they really think Moody's and Fitch will believe that ?

Do you mean the rating agencies that gave AAA ratings to repackaged toxic US mortgage debts?

[Suriya4]

[bangkok Post] Customers withdrew 30 billion baht from Government Savings Bank on Monday

Can't post a link but you can just go and read yourself..... sort of puts to bed all the crap about 58 million withdrawals and 51 million deposits and now you know the real reason why it has all been halted, and before anyone tries to blame Suthep.... Not a single report even from the red Khaosod press about him being involved.

This is just how much the public hates Yingers and Co.

With THIS news breaking, I wonder just how much will be pulled out tomorrow, or the next day... I think the damage has been done, the people know that the GSB is under control of the Thaksin regime and while it is, who knows what may now be happening behind closed doors.

This could kill the GSB, another stellar performance of the PTP caretaker government.

"Today the bank's clients took out around 30 billion baht. Most clients who withdrew were in Bangkok and the south. Around 10 billion baht was deposited. This doesn't impact the stability of the bank," Worawit Chalimpamontri, president of the savings bank, told a televised news conference.

http://www.reuters.com/article/2014/02/17/us-thailand-protest-idUSBREA1G05X20140217

[Jeremy50]

Another nail in Taksin's government coffin.

The thing must weigh a ton by now.

[ShannonT]

Looks like the BAAC is in bed with the Democ rats and Suthep.

The government gave them the money to pay the farmers and they still refuse to pay the farmers.

Such a shame. The farmers union refusing to pay their own farmers even though they have the money.

[bigbamboo]

Seems we now have another twist, the credit agencies are rearing their heads,

According to an official who asked for anonymity, Moody’s Investors Service and Fitch Ratings conducted conference calls with Thai officials last week, to get data needed for the annual review.

On the row between the government and rice farmers, they understood that it is just a "technical" default on debt to farmers as a result of political conflicts.

So the finance ministry has told them that it is the fault of the protesters (political conflict) that the farmers haven't been paid.

Do they really think Moody's and Fitch will believe that ?

Do you mean the rating agencies that gave AAA ratings to repackaged toxic US mortgage debts?

He does have a point although of course comparing the US with Thailand is like comparing a Rolls Royce with a roller skate.

The fact remains that this government has serious credibility issues and borrowing any amount of money, let alone that 2 trillion baht they dream about, is going to be financially crippling for the Thai people.

[Robby nz]

Seems we now have another twist, the credit agencies are rearing their heads,

According to an official who asked for anonymity, Moody’s Investors Service and Fitch Ratings conducted conference calls with Thai officials last week, to get data needed for the annual review.

On the row between the government and rice farmers, they understood that it is just a "technical" default on debt to farmers as a result of political conflicts.

So the finance ministry has told them that it is the fault of the protesters (political conflict) that the farmers haven't been paid.

Do they really think Moody's and Fitch will believe that ?

Do you mean the rating agencies that gave AAA ratings to repackaged toxic US mortgage debts?

So you are suggesting the ratings they have already given Thailand are as over rated as was those given in the sub prime debacle ?

Well they may just correct that soon.

[slipperx]

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

Get it right. GSB also had Baht 5 million + deposited - net withdrawals were circa B5 million. BAAC demonstrating once again that they do not care for farmers, who, incidentally are their main customers. In some rural areas, although there may be some ATMs from other banks, the only bank where banking business can be conducted is BAAC and then usually only one branch in each amphoe, so they have no competition. It seems that the BAAC's purpose is to screw the farmer every way they can.

Are you another January joiner because it is getting mighty boring reading the lies and drivel you people are posting.

Is it impossible for you to make a case for your point without lies that are so blatantly obvious. I am sure you could if you tried really hard - actually maybe not. Ah never mind

[telecom]

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

Get it right. GSB also had Baht 5 million + deposited - net withdrawals were circa B5 million. BAAC demonstrating once again that they do not care for farmers, who, incidentally are their main customers. In some rural areas, although there may be some ATMs from other banks, the only bank where banking business can be conducted is BAAC and then usually only one branch in each amphoe, so they have no competition. It seems that the BAAC's purpose is to screw the farmer every way they can.

[bangkok Post] Customers withdrew 30 billion baht from Government Savings Bank on Monday

You blind or what?

[Suriya4]

Just give the farmers back their rice.

Problem solved.

[SICHONSTEVE]

Looks like the BAAC is in bed with the Democ rats and Suthep.

The government gave them the money to pay the farmers and they still refuse to pay the farmers.

Such a shame. The farmers union refusing to pay their own farmers even though they have the money.

The BAAC is the farmers union now - silly me, I thought that it was a bank as it looked ever so likely that the first initial would tally with bank and I am surprised that there is no F or U in the name!!!

[slipperx]

Looks like the BAAC is in bed with the Democ rats and Suthep.

The government gave them the money to pay the farmers and they still refuse to pay the farmers.

Such a shame. The farmers union refusing to pay their own farmers even though they have the money.

Another January joiner trying to blame the bank now.

It is all so obvious.

[telecom]

[bangkok Post] Customers withdrew 30 billion baht from Government Savings Bank on Monday

Can't post a link but you can just go and read yourself..... sort of puts to bed all the crap about 58 million withdrawals and 51 million deposits and now you know the real reason why it has all been halted, and before anyone tries to blame Suthep.... Not a single report even from the red Khaosod press about him being involved.

This is just how much the public hates Yingers and Co.

With THIS news breaking, I wonder just how much will be pulled out tomorrow, or the next day... I think the damage has been done, the people know that the GSB is under control of the Thaksin regime and while it is, who knows what may now be happening behind closed doors.

This could kill the GSB, another stellar performance of the PTP caretaker government.

"Today the bank's clients took out around 30 billion baht. Most clients who withdrew were in Bangkok and the south. Around 10 billion baht was deposited. This doesn't impact the stability of the bank," Worawit Chalimpamontri, president of the savings bank, told a televised news conference.

http://www.reuters.com/article/2014/02/17/us-thailand-protest-idUSBREA1G05X20140217

Well he would say that wouldn't he......lol

It may not impact the bank, but the whole point is that it will IMPACT other customer's confidence and they too will run to the banks.

Only 170 Bn more and they are sunk, the rest of there money is tied up and they will no longer be able to function as a bank, and will have to be liquidated.

[zaphodbeeblebrox]

Just give the farmers back their rice.

Problem solved.

No, that's the problem. The rice has either gone missing or has now rotted. And, even if the rice could be returned, the farmers would be entitled to "cover" damages from the government under the Thai Civil Code. That's the difference between the government's promised price on the vouchers and the actual price the farmers are now able to sell the rice on the market, plus the additional expense of sale (eg, transport).

[telecom]

Looks like the BAAC is in bed with the Democ rats and Suthep.

The government gave them the money to pay the farmers and they still refuse to pay the farmers.

Such a shame. The farmers union refusing to pay their own farmers even though they have the money.

Wow... I can't believe how unintelligent you are.

The BAAC have absolutely nothing in common with the Dems and PDRC, they are poles apart. They are totally PTP loyal.

The government NEVER gave them the money, it was given as a loan from GSB who are possibly now on the verge of collapse as a result.

The farmer's Union??? What the hell are you going on about???? Since when has the farmer's union had anything to do with paying farmers? If you mean the BAAC employees union, I think you may learn that the union represents the bank employees and NOT the rice farmers..... lol

You know absolutely sod all about the situation, you just proved that with this buffoon post.

[tomross46]

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?

An easier question is, did the bank receive the money, and how much money did the government owe to the bank? The government is run by corrupt politicians, so another question would be how much of the 5 billion did the administration keep?

[JAS21]

[bangkok Post] Customers withdrew 30 billion baht from Government Savings Bank on Monday

Can't post a link but you can just go and read yourself..... sort of puts to bed all the crap about 58 million withdrawals and 51 million deposits and now you know the real reason why it has all been halted, and before anyone tries to blame Suthep.... Not a single report even from the red Khaosod press about him being involved.

This is just how much the public hates Yingers and Co.

With THIS news breaking, I wonder just how much will be pulled out tomorrow, or the next day... I think the damage has been done, the people know that the GSB is under control of the Thaksin regime and while it is, who knows what may now be happening behind closed doors.

This could kill the GSB, another stellar performance of the PTP caretaker government.

"Today the bank's clients took out around 30 billion baht. Most clients who withdrew were in Bangkok and the south. Around 10 billion baht was deposited. This doesn't impact the stability of the bank," Worawit Chalimpamontri, president of the savings bank, told a televised news conference.

http://www.reuters.com/article/2014/02/17/us-thailand-protest-idUSBREA1G05X20140217

Well he would say that wouldn't he......lol

It may not impact the bank, but the whole point is that it will IMPACT other customer's confidence and they too will run to the banks.

Only 170 Bn more and they are sunk, the rest of there money is tied up and they will no longer be able to function as a bank, and will have to be liquidated.

Apparently GSB president Worawit Chailimpamontri said that 30 Billion Baht was withdrawn but only 10Million Baht was deposited (not 10 Billion baht) if that's true then it puts a slightly different light on things..

[Soutpeel]

Just give the farmers back their rice.

Problem solved.

No, that's the problem. The rice has either gone missing or has now rotted. And, even if the rice could be returned, the farmers would be entitled to "cover" damages from the government under the Thai Civil Code. That's the difference between the government's promised price on the vouchers and the actual price the farmers are now able to sell the rice on the market, plus the additional expense of sale (eg, transport).

Cant wait for Dear YK's and her band of merry thieves spin of this one, will be interesting reading

[metisdead]

An inflammatory post has been removed.

[tomacht8]

Just give the farmers back their rice.

Problem solved.

No, that's the problem. The rice has either gone missing or has now rotted. And, even if the rice could be returned, the farmers would be entitled to "cover" damages from the government under the Thai Civil Code. That's the difference between the government's promised price on the vouchers and the actual price the farmers are now able to sell the rice on the market, plus the additional expense of sale (eg, transport).

Yes right, maybe Nattawut transport company can dish out some free transports.

This rice scheme is so rotten with all the corruption to the core.

If they confiscate the assets of all those who have enriched themselves illegally, they would have enough to pay the farmers.

[Jeremy50]

More like the GSB asked for the money back. They cancelled the loan arrangement, probably because of the 30 Bn that was withdrawn over the course of the day according to Sanook News website.

Here is a note taped to a GSB Bank door.

It basically says please stop withdrawing, we have cancelled the rice pledging loans to BAAC.

This notice would appear to convey only one thing. Panic.

[geriatrickid]

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.

One time loan?

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.

[Sunderland]

At 8-10 billion baht per month, isn't that going to take a minimum of 12-13 months to pay the farmers? The government will be long gone before that with their suitcases of money. The majority of farmers might as well accept now that the money isn't going to be forthcoming soon. I thought the government were aiming at paying 4 billion baht per day. How?????

[geriatrickid]

Does anyone else see corruption and manipulation on display and not from the government?

1. threat by its union: In the good old days of unions, organized crime and political parties used to have a stranglehold on some unions. The mafia and the teamster in the USA , the Labour party and the coal miners in the UK. Is the PDRC getting help from its friends/proxies at the "union"?

2. rush to withdrawal money from the GSB: Has the PDRC and some of its media supporters encouraged and pushed the rush in an effort to cause panic?

[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.

One time loan?

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.

Kewywords are of course " He believed ", yet if everything turns out as " he believed ", then how they gonna manage this

BANGKOK, Feb 17 – Farmers have welcomed the government’s move to pay them Bt4 billion daily, starting today until the Bt130 billion in overdue payments are paid off within a month.

http://www.thaivisa.com/forum/topic/705004-farmers-hail-thai-govt-promise-to-pay-overdue-debts-within-month/

[Dogmatix]

I don't see how an inter-bank loan which is usually from overnight to a maximum of 30 days can be used to fund the government's purchase of rice. It seemed like it was to disguise the fact that BAAC would pay out of its liquidity but within 30 days it will have to repay GSB out of its liquidity.

[monkeycountry]

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...

If you don't know something but still want to comment on it, why dig your own grave by stating it as fact?

The bank, and other banks, are not obliged, legally or otherwise, to give the farmers anything. The BAAC is merely a distribution channel between the government and the farmers. Once the bank gets the money from the government it pays them to the farmers. The bank itself does not owe the farmers a single baht!

I do agree with you though, the banks should stay out of politics, and if you have followed the news, you would notice that the directors of most banks are trying hard to stay out of this. Unfortunately some of them have the government and thereby the PTP as their largest shareholder, and the PTP is trying hard to drag the banks into this issue and make it look like it is the banks and not the PTP who is not paying the farmers.

[ggold]

Does anyone else see corruption and manipulation on display and not from the government?

1. threat by its union: In the good old days of unions, organized crime and political parties used to have a stranglehold on some unions. The mafia and the teamster in the USA , the Labour party and the coal miners in the UK. Is the PDRC getting help from its friends/proxies at the "union"?

2. rush to withdrawal money from the GSB: Has the PDRC and some of its media supporters encouraged and pushed the rush in an effort to cause panic?

3. could it be an own goal by the government, creating the run on the bank, trying to con the rice farmers yet again that they will get their money.

Oh I forgot nothing is the fault of the government it's everyone else.

[telecom]

Does anyone else see corruption and manipulation on display and not from the government?

1. threat by its union: In the good old days of unions, organized crime and political parties used to have a stranglehold on some unions. The mafia and the teamster in the USA , the Labour party and the coal miners in the UK. Is the PDRC getting help from its friends/proxies at the "union"?

2. rush to withdrawal money from the GSB: Has the PDRC and some of its media supporters encouraged and pushed the rush in an effort to cause panic?

The unions in the west are not the same as the unions here. There are little in the way of national unions here, they are mostly attached to a single business. Such as the BAAC has its own union, and the GSB has its own also.

Also you quoted political party and mafia alliances, the PDRC is not a political party or an organized crime syndicate, it is a protest movement. I doubt they have had time to forge alliances, and if there were any such alliances I can pretty much guarantee they would not be on the side of the democrats, they would align themselves with the polar opposite wouldn't you think?

Stop trying to bring the PDRC into this, the media would have been waiting for a chance all day long to tie this with the PDRC and not even the bullshit Thaksin funded Khaosod even come up with anything. They don't need to do it, they knew already what the results would have been, I was waiting for this since Saturday when the GSB story broke..... It ain't rocket science... Millions of Thais hate this government, enough to also hate the GSB for supporting the government and its corrupt and failed rice policy.