RICE-PLEDGING SCHEME
Farmers to be paid via issuance of public bonds
The Nation

Kittiratt says some will be paid next week through sale of stockpiled rice

BANGKOK: -- The caretaker government says it is preparing to launch a bond issuance to mobilise funds to pay farmers under the rice-pledging scheme.

Caretaker Finance Minister Kittiratt Na-Ranong also said unspecified groups of farmers would be paid by next week with money from the ongoing sale of rice in government stocks.

He said that after negotiations between the leaders of farmers and the government yesterday, in which the immediate payments were promised, a large number of protesting farmers Bangkok had returned home.

Senior State Enterprise Policy Office official Prasong Poontaneat said the Vayupak Fund, which is under governmental supervision, did not have sufficient fluidity to invest in a future issuance of bonds by the Bank for Agriculture and Agricultural Cooperatives.

He said it would depend on the specific policies of each state enterprise as to whether they would be interested or allowed to invest in future bonds.

A Finance Ministry source, however, said there was still a chance the government could raise funds to pay farmers through the Vayupak Fund.

The source said the government could offload investments from the fund's portfolio, especially equity shares in some state-owned enterprises, which would raise as much as Bt50 billion.

The source said he would prefer to see the money come from the sale of rice in government stocks.

The Vayupak Fund currently has around Bt250 billion in net assets under management.

Kittiratt said a conclusion to the bond issuance would be reached in seven to eight weeks.

"Details are being prepared [so that] interest rates and the bonds' creditability would be attractive to investors," he said.

The bonds would be sold to small investors, because it is believed a lot of people are interested in helping farmers, but large-scale investors or state enterprises are not perspective investors, he added.

Former Chart Thai Pattana MP Chada Thaiset, who led a long convoy of farmers from Uthai Thani and other central provinces to Bangkok to voice their protests over the delayed payments, promised farmers owed more than Bt500,000 that they would be paid in six weeks. Those owed less than that would be paid next week.

He vowed to lead them back to Bangkok if the deadlines were not met, but urged them to return home for now.

The BAAC said Bt235 million had been transferred to 14 of its Phichit branches to pay farmers.


-- The Nation 2014-02-22

Finance ministry : 'Finding more ways for the rice pledging scam to skim more money'. Go home now

' Ongoing sales of rice ' so as usual with backs to the wall the government claims it's selling from the stockpiles.

No longer is it ' show us the money ' rather ' show us the contracts ' ( if they actually exist ).

Nothing like paying for a product with worthless paper.

' Ongoing sales of rice ' so as usual with backs to the wall the government claims it's selling from the stockpiles.

No longer is it ' show us the money ' rather ' show us the contracts ' ( if they actually exist ).

Other countries now claiming Thailand is dumping rice on world market. Trying to involve WTO.

' Ongoing sales of rice ' so as usual with backs to the wall the government claims it's selling from the stockpiles.

No longer is it ' show us the money ' rather ' show us the contracts ' ( if they actually exist ).

Other countries now claiming Thailand is dumping rice on world market. Trying to involve WTO.

So much for the ' charm offensive ' to tell the world the' truth ' about what's happening and re-assure foreign investors.

In the old days in the UK, they would refer to this as "robbing Peter to pay back Paul". Once again they are looking at ways of putting a future government in hock...!!

"The bonds would be sold to small investors, because it is believed a lot of people are interested in helping farmers, but large-scale investors or state enterprises are not perspective investors, he added."

Of course large-scale investors aren't prospective bond buyers. They didn't get rich by being stupid.

But can they raise enough from the small investor? 130 billion baht is a ton of money, and that's what they owe until the next rice crop comes in.

Chada showing suthep how statesmen operate.

Vayupak fund, thought the government had no cash?

Well, wouldn't it just be a government bond, just like any other.

On the basis that the pledging system isn't going to keep going, what would be the risk in investing in them. Crazy concept paying interest on a farmers labour for many years,but hey, I would buy these bonds just as an investment.

Chada showing suthep how statesmen operate.

Vayupak fund, thought the government had no cash?

How do you think they are paying civil servants or the army?

Printing money. The Thais are copying the old US trick. When you run out, print more.

"The BAAC said Bt235 million had been transferred to 14 of its Phichit branches to pay farmers."

Were this money (+30%) blackmailed from AOT, to make the farmers U-turning??

Must have been an great opportunity for AoT to get rid of the farmers.......

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Nothing like paying for a product with worthless paper.

My sentiments exactly , how do you know that you will get your money when you cash in the bonds, also ,who is the small investors , interesting comments that.

Yellow shirts dont like this story because they want to block the payments for as long as possible.

The farmers know this and know that the real enemy is the 2 faces yellow shirts .... nothing has changed.

They will get their money and next election they will vote a pro thaksin gov back in to power... again and again and again

It's a shame the rice farmers have gone unpaid for so many months.

If these proposals are truly viable, why weren't they implemented many months ago?

.

Well, wouldn't it just be a government bond, just like any other.

On the basis that the pledging system isn't going to keep going, what would be the risk in investing in them. Crazy concept paying interest on a farmers labour for many years,but hey, I would buy these bonds just as an investment.

That is not an investment!

Chada showing suthep how statesmen operate.

Vayupak fund, thought the government had no cash?

Vayupak Fund. Second largest shareholder in SC Bank, after CPB.

http://www.scb.co.th/en/about-scb/investor-relations/company-information/shareholder-structure

The rice payment process has been so slow because the instructions are being delivered by camel-courier.

Why is issuing bonds not the same as borrowing from a bank? Is government debt not being increased?

Yellow shirts dont like this story because they want to block the payments for as long as possible.

The farmers know this and know that the real enemy is the 2 faces yellow shirts .... nothing has changed.

They will get their money and next election they will vote a pro thaksin gov back in to power... again and again and again

Yep, there still upset about some tractors turning their backs on them.

"Poznan" tractor style

I am with David on this one... I am not a fan of the current gov, but if these are viable ways to pay the farmers then why just now?

Although thought I read a few weeks ago about gov not being allowed to create debt for future gov?

Isn't issuing gov rice bonds creating debt? How is this different than other previous plans

Also what is the Vayupak fund? What is it's intended purpose? Is it just a general gov slush fund that can be used for anything?

Or was it specifically set up for some specific purpose to fund some other program ?

I am all for farmers getting paid, but not for doing anything to create additional debt.

The best way is to sell off all stock piles of rice first to pay the farmers... As by selling the rice, not only do you raise funds to pay farmers but you also cut costs, as less rice is storage, so daily storage costs also go down

Sent from my iPhone using Tapatalk

Surprisingly, the Shin's and PT still seem to be operating under the misguided impression that anyone outside Thailand doesn't know what's really going on here.

You can't sell "enough" rice to pay back the farmers now or in the immediate future cos you screwed up the market so badly for Thailand + you let everyone else in the whole world know exactly what you were doing and you also can't make any proper "deals" cos you are a caretaker Govt (great plan that one by the way - a little forethought would have shown you the consequences of that action, but hey ho, you're the PT who can do whatever you want cos everyone else is wrong).

So now everyone is sitting back and watching it get worse for you until such time as they can step in and buy up the lot at fire sale prices, or watch you burn it all cos it's rotten. The scheme is over. Put it to bed and cut the losses.

It hurts that the farmers will get paid, doesn't it.

All this fake sympathy and understanding of their needs BS.

feel the pain boys, feel the pain.

The "hole" is just getting deeper & deeper, how is issueing bonds making money, it is making further debt which must be repaid.

So is borrowing from the Vayupak fund, the money has to be repaid!!!

Or is this a new slush fund from the man in Dubai?

One would think by now that a responsible government would have been in control of all finance options.

This government is incompetent beyond belief, they believe Thailand will survive this debacle, everyday the debt problem is getting "deeper", soon the "hole" will be too deep to escape.

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

It hurts that the farmers will get paid, doesn't it.

All this fake sympathy and understanding of their needs BS.

feel the pain boys, feel the pain.

How many farmers do you expect to be paid in the near future? So who is feeling pain?

And when they are finally paid, should we rejoice at another huge increase in public debt?

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

It hurts that the farmers will get paid, doesn't it.

All this fake sympathy and understanding of their needs BS.

feel the pain boys, feel the pain.

How many farmers do you expect to be paid in the near future? So who is feeling pain?

And when they are finally paid, should we rejoice at another huge increase in public debt?

And which farmers will be paid ?? , the ones that voted for the Shin Dynasty , YES ... The rest Sweet FA ... Wow What a Democracy ...

So ... once again they aren't going to sell any rice .. they are going to raise (borrow) money to pay the farmers. The rice stockpile will continue to rot .... and grow (?) if this Govt continues with this self-destructive program.

No one wants to buy Thai rice now because they don't want to get caught up in the predictable coming corruption investigation .. and ALL the buyers know they cannot escape being sucked into the corruption that the Thai rice industry/Govt program is comprised of.

They cannot sell the rice. It's as simple as that.

The sooner they stop this scheme and stop promising to buy more rice .... the better.

Why is issuing bonds not the same as borrowing from a bank? Is government debt not being increased?

It is being increased. You are correct.

The public essentially loans money to the government at an interest rate and is therefore extending the debt for the next government

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

One thinks the HOLE is tooooo deep now, ..........................