GSB cancels Bt20 billion interbank loan to BAAC

[bigbamboo]

Idiot lost his job because he was stupid enough to put the bank at risk. Today's bank runs goes to show how little faith the people have in this corrupt government to settle their debts and obligations.

Aye, his 650,000 Baht a month job. It would be interesting to note his professional trajectory from this point onwards.

I should imagine it will going down quicker than a Pattaya tart.

(As opposed to a Bakewell tart of course.)

Edited February 18, 2014 by bigbamboo

[Basil B]

'..... and recalled its Bt5 billion loan already granted. .....'

From other reports the BAAC, the bank which received the 5m, this money has already been distributed to farmers.

So now the questions:

- What prompted the GSB to give BAAC the 5m? A good guess would be political interference. Another case for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

- If no, then what happens next. GSB demands the return of their funds. Maybe loan shark thugs on the job - at the least more tangled web for the NACC to investigate.

- If yes, then why didn't they distribute it to the farmers before this all happened? Perhaps even more stuff for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

As the money was supposed to (officially) go to shore up the BAAC liquidity repayment should in theory come from the BAAC liquidity.

However if they have already spent it, paid it out to farmers, then the 5 billion should still come from the liquidity (where it was supposed to have gone) which would them drop the BAAC liquidity by 5 billion.

What a cock up.

mai pen rai, tomorrows another day...

The out fall from this will be a lot of bail jumpers, I hope the man in Dubai realizes just how big he needs to build that sand castle...

[rreddin]

'..... and recalled its Bt5 billion loan already granted. .....'

From other reports the BAAC, the bank which received the 5m, this money has already been distributed to farmers.

So now the questions:

- What prompted the GSB to give BAAC the 5m? A good guess would be political interference. Another case for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

- If no, then what happens next. GSB demands the return of their funds. Maybe loan shark thugs on the job - at the least more tangled web for the NACC to investigate.

- If yes, then why didn't they distribute it to the farmers before this all happened? Perhaps even more stuff for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

As the money was supposed to (officially) go to shore up the BAAC liquidity repayment should in theory come from the BAAC liquidity.

However if they have already spent it, paid it out to farmers, then the 5 billion should still come from the liquidity (where it was supposed to have gone) which would them drop the BAAC liquidity by 5 billion.

What a cock up.

mai pen rai, tomorrows another day...

The out fall from this will be a lot of bail jumpers, I hope the man in Dubai realizes just how big he needs to build that sand castle...

I have read all the posts on this thread to date and so far none of you so called educated, superior, farangs has commented on two significant facts. In your rush to post your predictable billious comments you you overlooked something. Some Thais are a lot smarter than you are - and certainly a lot richer.

Assuming the cheques are good, one Thai business person deposited 200,000,000 Baht and another deposited 70,000,000 Baht. What is that they know that you do not? Whatever it is has got to be worth moving millions of Dollars otherwise they would not have done it.

[casualbiker]

'..... and recalled its Bt5 billion loan already granted. .....'

From other reports the BAAC, the bank which received the 5m, this money has already been distributed to farmers.

So now the questions:

- What prompted the GSB to give BAAC the 5m? A good guess would be political interference. Another case for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

- If no, then what happens next. GSB demands the return of their funds. Maybe loan shark thugs on the job - at the least more tangled web for the NACC to investigate.

- If yes, then why didn't they distribute it to the farmers before this all happened? Perhaps even more stuff for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

As the money was supposed to (officially) go to shore up the BAAC liquidity repayment should in theory come from the BAAC liquidity.

However if they have already spent it, paid it out to farmers, then the 5 billion should still come from the liquidity (where it was supposed to have gone) which would them drop the BAAC liquidity by 5 billion.

What a cock up.

mai pen rai, tomorrows another day...

The out fall from this will be a lot of bail jumpers, I hope the man in Dubai realizes just how big he needs to build that sand castle...

I have read all the posts on this thread to date and so far none of you so called educated, superior, farangs has commented on two significant facts. In your rush to post your predictable billious comments you you overlooked something. Some Thais are a lot smarter than you are - and certainly a lot richer.

Assuming the cheques are good, one Thai business person deposited 200,000,000 Baht and another deposited 70,000,000 Baht. What is that they know that you do not? Whatever it is has got to be worth moving millions of Dollars otherwise they would not have done it.

The potential for FREE advertising

[rreddin]

A fairly good article in the BP on this issue. It's worth reading and provides another side of the coin to the posts here.

It sure does. But what comes out of this mess is that one Thai bank cannot rely on another Thai bank to honour an inter-bank loan that has been agreed. That s a serious cause for concern to anyone investing in this country. Another cause for concern is that bank lending policy is being dictated by union bullies.

[JesseFrank]

A fairly good article in the BP on this issue. It's worth reading and provides another side of the coin to the posts here.

It sure does. But what comes out of this mess is that one Thai bank cannot rely on another Thai bank to honour an inter-bank loan that has been agreed. That s a serious cause for concern to anyone investing in this country. Another cause for concern is that bank lending policy is being dictated by union bullies.

Please let me correct your honest mistake .

But what comes out of this mess is that one Thai bank cannot rely on another Thai bank to honour an inter-bank loan that has been agreed they had been forced to .

[3NUMBAS]

they'd rather lend the money to their crooked cronies for property and land speculation and get large tea money and kickbacks in return

[Trembly]

- Does the BAAC have the funds to return the 5m to the GSB?

As the money was supposed to (officially) go to shore up the BAAC liquidity repayment should in theory come from the BAAC liquidity.

However if they have already spent it, paid it out to farmers, then the 5 billion should still come from the liquidity (where it was supposed to have gone) which would them drop the BAAC liquidity by 5 billion.

What a cock up.

mai pen rai, tomorrows another day...

The out fall from this will be a lot of bail jumpers, I hope the man in Dubai realizes just how big he needs to build that sand castle...

I have read all the posts on this thread to date and so far none of you so called educated, superior, farangs has commented on two significant facts. In your rush to post your predictable billious comments you you overlooked something. Some Thais are a lot smarter than you are - and certainly a lot richer.

Assuming the cheques are good, one Thai business person deposited 200,000,000 Baht and another deposited 70,000,000 Baht. What is that they know that you do not? Whatever it is has got to be worth moving millions of Dollars otherwise they would not have done it.

The potential for FREE advertising

Or perhaps they're just true believers.

rredin makes a good point : the pyramid of wealth in Thai society is not as tapered as in the common caricature portrayals of Thai Visa. In other words, there's more money sloshing around, in more places, in more quantities, in more different ways than is ever accounted for in the simple rubric of amart-businessman-highly educated good girl of Chinese extraction with powerful general Thai father-peasant espoused by many farang.

The same goes for political views.

Then again I'm not entirely sure whether they did that before or after the GSB announced that it was cancelling the loan and getting the 5bn back . . . so you may well be right about free advertising, or perhaps simply currying favour in some circles without having to actually spend any money.

Edited February 18, 2014 by Trembly

[ponchi]

is very smart the farmer people dont get money before yingluck go out.

so the farmer will be very angry for the thaksin family.

when yingluck go out we pay the farmer don't worry !!

[TallGuyJohninBKK]

A little tidbit many folks probably don't know.

The Government Savings Bank is not a commercial bank, it's a government bank, and as such, it's not included/covered under the Thai Government's Deposit Protection scheme, which protects up to 50 million per depositor per bank. Neither is BAAC, for that matter.

Now, of course, I would presume that GSB and BAAC are still backed by the full faith and credit of the Thai government (whatever that exactly means in today's era).. But I'm not sure that's exactly the same as having a formal and legally enacted deposit protection scheme that lays out in detail how funds are to be returned should a bank fail financially.

Here's the list of Deposit Protection covered institutions:

http://www.dpa.or.th/ewt_news.php?nid=34&filename=index___EN

[Gulfsailor]

A little tidbit many folks probably don't know.

The Government Savings Bank is not a commercial bank, it's a government bank, and as such, it's not included/covered under the Thai Government's Deposit Protection scheme, which protects up to 50 million per depositor per bank. Neither is BAAC, for that matter.

Now, of course, I would presume that GSB and BAAC are still backed by the full faith and credit of the Thai government (whatever that exactly means in today's era).. But I'm not sure that's exactly the same as having a formal and legally enacted deposit protection scheme that lays out in detail how funds are to be returned should a bank fail financially.

Here's the list of Deposit Protection covered institutions:

http://www.dpa.or.th/ewt_news.php?nid=34&filename=index___EN

Who do you think is the guarantor for the depositor guarantee at the banks under BOT regulation? It's the same Thai government. So either your are covered up to 50 million (to be reduced to 1 million in 2016) if your money is in a BOT regulated commercial bank, or you are covered 100% if it's in a ministry of finance regulated and state owned bank. Alternatively you are SOL either way when the government defaults. Herein also lies the reason why nearly 500 billion Baht in deposits were moved from commercial banks to GSB in 2012/2013, because the government guaranteed amount was reduced and will be reduced even further. Not so at state banks. Still 100% guaranteed.

[Trembly]

A little tidbit many folks probably don't know.

The Government Savings Bank is not a commercial bank, it's a government bank, and as such, it's not included/covered under the Thai Government's Deposit Protection scheme, which protects up to 50 million per depositor per bank. Neither is BAAC, for that matter.

Now, of course, I would presume that GSB and BAAC are still backed by the full faith and credit of the Thai government (whatever that exactly means in today's era).. But I'm not sure that's exactly the same as having a formal and legally enacted deposit protection scheme that lays out in detail how funds are to be returned should a bank fail financially.

Here's the list of Deposit Protection covered institutions:

http://www.dpa.or.th/ewt_news.php?nid=34&filename=index___EN

For whatever it's worth, GSB do have the phrase "guaranteed by the government" emblazoned in permanent signage next to the name at most if not all branches.

Sent from my iPhone using Thaivisa Connect Thailand

[TallGuyJohninBKK]

As I noted in my post, yes, GSB is a government creation and backed by the government...

Just like the rice pledging program is a creation of the government and backed by the government... How are those government payments going lately???

If I was going to keep money in Thai banks, I'd prefer to be legally protected by a specific law that covers my baht... as opposed to the general full faith notion that applies to government institutions.

Then, at least, I wouldn't have to be spending money to sue the government for non payment of its obligations. Because the legal obligation is already clearly and specifically spelled out in DPA statute.

Also, I believe, the DPA program is actually privately funded in whole or part by required payments from the participating private banks -- funds that are kept in trust by the DPA. In the case of the government banks, I don't believe they participate in that, and thus any payment of funds would be dependant on the government itself and government funds.

Edited February 18, 2014 by TallGuyJohninBKK

[belg]

if only this country was not full of corrupt politicians & business men...30% corruption accepted on everything, that could have helped the poor but the bag of the rich/devil is never full

[Lupatria]

Didn't know what the loan was for? I smell 120 billion tonnes of bullsh*t!

There was probably a hotline call to Dubai recently: “Hey Bro, what do I need to do to blame this new mess on the protesters…”

“Acting GSB president Worawit Chailimpamontri, who resigned from his post this afternoon amid cheers from the bank staff, said he had no idea the BAAC would ask for loans for the rice pledging scheme.”

Btw after this statement I guess the guy should try a job as a parking lot attendant, not much expertise in bank business needed here.

[arminbkk]

So are all those 'high profile' people, including Phey Thai executives, that opened new accounts and/or deposited money with GSB, now going to withdraw their money and close their accounts?

[peterquixote]

After a three struggle with Visa and Residency, My wife gained work here in New Zealand as a kitchen chef.

We already had to pay for her son in Isaan, and she was looking forward to money of her own.

Now we have to send this money to her parents in a Maha Sarakham village,

because of the incompetency and utter corruption of the Thaksin violation of Thailand .

I can not speak Thai so I don't know how they vote,

but if I thought he voted Pheu Thai I would let him die of starvation in his rice field.

I hate Shinawatra, but I am losing patience with those farmers.

[Butcherbird]

'..... and recalled its Bt5 billion loan already granted. .....'

From other reports the BAAC, the bank which received the 5m, this money has already been distributed to farmers.

So now the questions:

- What prompted the GSB to give BAAC the 5m? A good guess would be political interference. Another case for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

- If no, then what happens next. GSB demands the return of their funds. Maybe loan shark thugs on the job - at the least more tangled web for the NACC to investigate.

- If yes, then why didn't they distribute it to the farmers before this all happened? Perhaps even more stuff for the NACC to investigate.

- Does the BAAC have the funds to return the 5m to the GSB?

As the money was supposed to (officially) go to shore up the BAAC liquidity repayment should in theory come from the BAAC liquidity.

However if they have already spent it, paid it out to farmers, then the 5 billion should still come from the liquidity (where it was supposed to have gone) which would them drop the BAAC liquidity by 5 billion.

What a cock up.

mai pen rai, tomorrows another day...

The out fall from this will be a lot of bail jumpers, I hope the man in Dubai realizes just how big he needs to build that sand castle...

I have read all the posts on this thread to date and so far none of you so called educated, superior, farangs has commented on two significant facts. In your rush to post your predictable billious comments you you overlooked something. Some Thais are a lot smarter than you are - and certainly a lot richer.

Assuming the cheques are good, one Thai business person deposited 200,000,000 Baht and another deposited 70,000,000 Baht. What is that they know that you do not? Whatever it is has got to be worth moving millions of Dollars otherwise they would not have done it.

Had it occurred to you that announcing that a few well known people opening and depositing money at the bank at this particular time is nothing more that political window dressing ? I would not be surprised if the very same amounts are quietly removed again. These actions are almost certainly just to provide face at a time when the bank so obviously needs it. A typical asian response to this sort of predicament.

Nobody at a time like this would seriously risk their own cash with a banking institute that is now in serious trouble. This is a bank that is backed by a caretaker government that does not have the legal right to order it to prop up failed government schemes. The reputation of the bank has now taken a huge hit and if it survives this mess it will take years for it's former customers to trust it again. It has now unwittingly been drawn into the political mess that will smear it's reputation for a long time.

[rickirs]

When the day is over and the polictical finger-pointers and anti-government protesters eat their dinners and go to bed, what do the farmers have? Nothing. There is now a complete block against any process to sell the rice and deliver payment to the farmers. There is no new government yet to pass legislation, the Democrats cannot pass any legislation now or in the next administation; even a successful government overthrow by Suthep will not according to their own agenda produce a new parliament for 12-18 months. The only possible outcome is that farmers abandon their crops and find employment in the cities to sustain their families. And that leads to more difficult challenges.

[tetleythedog]

" Pheu Thai Party members opened 10 accounts with the bank at the total sum of Bt3 million. "

When will Mr Deep pocket baht arrives from Dubai??

Wonder if the dear PM Ms YL deposit any baht at all !

1st rule of bank robbers; You don't rob the bank (or country in this case) where you have your account(s).

Wonder why they didn't use this bank before? Not so good as offshore for hiding cash i suppose. Anyway 3 Mill is a drop in the ocean for them.

[bangon04]

" Pheu Thai Party members opened 10 accounts with the bank at the total sum of Bt3 million. "

When will Mr Deep pocket baht arrives from Dubai??

Wonder if the dear PM Ms YL deposit any baht at all !

"Meanwhile, a meeting of the Pheu Thai Party on Tuesday agreed that its leaders led by former prime minister Somchai Wongsawat and other key figures of the party open new bank accounts at a GSB branch in the capital"

Yes a cynic might be forgiven for thinking that the new depositors have extra cash slushing around as a result of the rice pledging scheme, and are simply recycling the funds....

[LeamchabangLarry]

So what's the tally on the deserved run on GSB today?

[GentlemanJim]

So what's the tally on the deserved run on GSB today?

Don't know but i am witnessing incredible scenes in the town shopping mall right now. Large queues of people all of them not only withdrawing all funds but also closing accounts down completely. Once done the people are then going next door to form another queue at Siam Commercial to open new accounts.

It would seem the President of GSB has just turned GSB into the Ratners of SE Asia.

[LeamchabangLarry]

So what's the tally on the deserved run on GSB today?

Don't know but i am witnessing incredible scenes in the town shopping mall right now. Large queues of people all of them not only withdrawing all funds but also closing accounts down completely. Once done the people are then going next door to form another queue at Siam Commercial to open new accounts.

It would seem the President of GSB has just turned GSB into the Ratners of SE Asia.

thanks for the first-hand account. What a train wreck of an idiot decision to send the loan, then lie about it

[casualbiker]

When the day is over and the polictical finger-pointers and anti-government protesters eat their dinners and go to bed, what do the farmers have? Nothing. There is now a complete block against any process to sell the rice and deliver payment to the farmers. There is no new government yet to pass legislation, the Democrats cannot pass any legislation now or in the next administation; even a successful government overthrow by Suthep will not according to their own agenda produce a new parliament for 12-18 months. The only possible outcome is that farmers abandon their crops and find employment in the cities to sustain their families. And that leads to more difficult challenges.

If what you are stating is true .. how are the Commerce and other ministry's selling the rice. Which they are bit by bit (slowly)

And I do not know Suthep's plan. BUT I thought it meant an interim government .. eg a working government!

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

[englishoak]

So the sky hasnt fallen yet then on GSB ? ... apart from on the farmers payments being used as leverage.

Two wrongs making it worse and the farmers stuck with the shitty end of the stick, very civilised ..

[JRSoul]

So the sky hasnt fallen yet then on GSB ? ... apart from on the farmers payments being used as leverage.

Two wrongs making it worse and the farmers stuck with the shitty end of the stick, very civilised ..

If you can stay calm while others are panicking, you don't understand the situation.

[kerrysum]

This bank was set up to encourage Thailand's lower and middle classes to save money in a bank.

A hundred year history destroyed in days by the Shinawatra's and their cronies.

And yes the pint is the pound the world round..... I agree totally.......

[kerrysum]

" Pheu Thai Party members opened 10 accounts with the bank at the total sum of Bt3 million. "

When will Mr Deep pocket baht arrives from Dubai??

Wonder if the dear PM Ms YL deposit any baht at all !

"Meanwhile, a meeting of the Pheu Thai Party on Tuesday agreed that its leaders led by former prime minister Somchai Wongsawat and other key figures of the party open new bank accounts at a GSB branch in the capital"

Yes a cynic might be forgiven for thinking that the new depositors have extra cash slushing around as a result of the rice pledging scheme, and are simply recycling the funds....

Hmmmmm... sounds logical to me........ I love it when a plan comes together......