EC allows Thai govt to use Bt20bn from central fund to pay farmers

[webfact]

POLITICS
EC allows govt to use Bt20bn from central fund to pay farmers

BANGKOK: -- The Election Commission on Tuesday approved the government's plan to use Bt20 billion from the central fund to pay farmers who joined the ricepledging scheme, EC member Somchai Srisutthiyakorn announced.

However, the EC requires the government to refund the central fund with the entire Bt20 billion through rice sales by May 31, Somchai posted on this Facebook wall.

The EC allowed the government to use the money in a form of a loan between the Foreign Trade Department and the Finance Ministry, Somchai said.

Somchai said the government promised that the Bt20 billion would be borrowed from the central fund, not just taken from it.

He said the Budget Bureau director also affirmed to the EC that if the caretaker government returned Bt20 billion to the fund by the end of May, the central fund would not be affected.

The director general of the Foreign Trade Department said that the department would be able to sell rice from the government's stockpiles and raise enough money to repay the central fund within the deadline.

The government has been unloading its stockpiles of rice to raise funds to gradually pay its debt of Bt130 billion to farmers who have pledged their rice under the pledging scheme.

The government has failed to borrow money from banks or raise funds by issuing promissory notes to earn cash for farmers' payments.

-- The Nation 2014-03-04

[kimamey]

Well that's good news for the farmers. Let's hope it gets repaid although I won't be surprised if there's a delay. We need another 30 days... and another... and another.

Of course if it doesn't get repaid we can blame the EC for not realising their duty is to be biased against the PTP government.

Edited March 4, 2014 by kimamey

[Costas2008]

"Somchai said the government promised that the Bt20 billion would be borrowed from the central fund, not just taken from it."

If the Government promised, rest assured, that they are saying the truth and they will repay the money in unspecified time.

Good that the farmers will get some money, but in the meantime other sectors will start suffering from the lack of funds.

A vicious circle, that there is no exit for the foreseeable future.

[BillyBobThai]

Peter, Paul & Yingluck, has a nice ring to it.

[ChrisY1]

Will be interesting to see if the EC turn to chameleons and begin to change their tactics now Suthep has "reduced"/"minimised" his protests, and signs, possibly, that the Govt. slowly regains it's position.

Results of Sundays voting released yet??

[Why ask]

Rest assured 40% of that 20B is going to disappear. The rape continues. Well done K. Thakcrap. It just becomes more frightening at how low these PTP morons can stoop. Let's take the GDP while we're at it... who needs it? We don't listen to the World Bank and the UN really, do we lads? Go, go, go.

[Prbkk]

Some common sense and a conciliatory approach by the EC. A resolution is in sight.

[kimamey]

Will be interesting to see if the EC turn to chameleons and begin to change their tactics now Suthep has "reduced"/"minimised" his protests, and signs, possibly, that the Govt. slowly regains it's position.

Results of Sundays voting released yet??

Not until all voting has taken place I believe.

[kotsak]

However, the EC requires the government to refund the central fund with the entire Bt20 billion through rice sales by May 31, Somchai posted on this Facebook wall.

Not in this lifetime..

[robblok]

Some common sense and a conciliatory approach by the EC. A resolution is in sight.

Sure, but what if they can't sell the rice ?

Do you then accept them to take responsibility and step down for violating the constitution. Its a double edged sword, now they have something they have to do or else. Failing this should have consequences.

[Robby nz]

Great some of the farmers will get some of the money they are owed.

But hang on the foreign trade Dept now has to sell enough rice by the end of May to repay this loan (with interest?)

So how much rice do they have to sell, well according to ORYZA web site the best they could hope for is the price of high quality Thai long grain rice at US$ 450 per ton FOB.

Thats about 14,400 B per ton at 32 b to $. Allowing for the costs of FOB say 14,000 B per ton.

Now I need someone who speaks fluent mathematics, but anyway my in the head calculation (guess) is that they need to sell around 1500 tons a day in the time they have to repay the loan.

That's in best case but I see speculation that they will be getting around 8,000 for the rice they hope to sell.

OK someone come up with proper numbers.

[Thai at Heart]

What changed from a few weeks ago?

[Bangel72]

I'd be interested to know what either a 'peoples council' or another party would do if they were put in charge with only interim government authority tomorrow.

Would they pay farmers?, Would they say hard luck you may have been a victim of fraud?, Would they wash their hands of it completely?

If they would pay them, how would they do so and what would be the time frames?

I agree there is a risk if money is authorised now it will end up in the wrong hands, but in dealing with these as a single problem rather than as separate issues the farmers are the ones taking the fall in this conflict.

[Fat Haggis]

Some common sense and a conciliatory approach by the EC. A resolution is in sight.

Sure, but what if they can't sell the rice ?

Do you then accept them to take responsibility and step down for violating the constitution. Its a double edged sword, now they have something they have to do or else. Failing this should have consequences.

What if the PDRC's non elected peoples council couldn't sell the rice either if they were to be placed in power, or the Dems for that matter?

[Robby nz]

What changed from a few weeks ago?

What has changed is a different approach from the caretaker Govt that the EC has deemed to be within the law.

Remember a few weeks ago the EC said the caretaker Govt could go ahead and borrow if the wanted to 'but be it on their own head', as in don't blame us .

Now it would appear they are saying 'go do it as long as the loan is repayed in the specified time', sounds pretty similar to "be it on your own head"

But now there is more desperation on the part of the caretaker govt.

[aussieinthailand]

Well that's good news for the farmers. Let's hope it gets repaid although I won't be surprised if there's a delay. We need another 30 days... and another... and another.

Of course if it doesn't get repaid we can blame the EC for not realising their duty is to be biased against the PTP government.

And just who do you think repaid the IMF before the due date??? Ye'p the very same person that so often Suthep and Dem supporters say,

What did Thaksin ever do for Thailand, you get that question answered and then you quickly and conveniently forget it.

But hey you could be right, it may well take longer to repay???

[Goat Roper]

I'd be interested to know what either a 'peoples council' or another party would do if they were put in charge with only interim government authority tomorrow.

Would they pay farmers?, Would they say hard luck you may have been a victim of fraud?, Would they wash their hands of it completely?

If they would pay them, how would they do so and what would be the time frames?

I agree there is a risk if money is authorised now it will end up in the wrong hands, but in dealing with these as a single problem rather than as separate issues the farmers are the ones taking the fall in this conflict.

Hopefully a 'peoples council' wouldn't lie and steal; that might be a reach though.

[bigbamboo]

Will be interesting to see if the EC turn to chameleons and begin to change their tactics now Suthep has "reduced"/"minimised" his protests, and signs, possibly, that the Govt. slowly regains it's position.

Results of Sundays voting released yet??

Those figures are probably having a nice Thai massage.

Shouldn't have taken long to count them as it seems hardly anyone showed up to vote.

[casindonet]

Why the sudden U-turn by the EC on the 20bn & also the election?

Sent from my GT-I9200 using Thaivisa Connect Thailand mobile app

[Gunna]

Great some of the farmers will get some of the money they are owed.

But hang on the foreign trade Dept now has to sell enough rice by the end of May to repay this loan (with interest?)

So how much rice do they have to sell, well according to ORYZA web site the best they could hope for is the price of high quality Thai long grain rice at US$ 450 per ton FOB.

Thats about 14,400 B per ton at 32 b to $. Allowing for the costs of FOB say 14,000 B per ton.

Now I need someone who speaks fluent mathematics, but anyway my in the head calculation (guess) is that they need to sell around 1500 tons a day in the time they have to repay the loan.

That's in best case but I see speculation that they will be getting around 8,000 for the rice they hope to sell.

OK someone come up with proper numbers.

Less than 3 months to sell 2 million tons at 10,000bt per ton to raise 20Bn bt to pay back the loan. There is a glut of rice and more and more countries are refusing to buy Thai rice knowing that is been in storage for so long. The buyers will rather pay a bit more for rice from the new crops being harvested now and therefore guaranteed to be free of contamination. I would say 100% the loan won't be repaid by 31 May even without corruptoion.

[robblok]

Some common sense and a conciliatory approach by the EC. A resolution is in sight.

Sure, but what if they can't sell the rice ?

Do you then accept them to take responsibility and step down for violating the constitution. Its a double edged sword, now they have something they have to do or else. Failing this should have consequences.

What if the PDRC's non elected peoples council couldn't sell the rice either if they were to be placed in power, or the Dems for that matter?

They did not start this crazy scheme PTP did and must be held responsible for all of it. Storage everything. They were told by everyone it was a stupid idea ignored the warnings and went on with this vote buying in disguise. Now they take a loan.. if they cant repay it off with their heads (figuratively) though Charlem should be beheaded by now on his own account to fail to get Taksin back.

[Thai at Heart]

What changed from a few weeks ago?

What has changed is a different approach from the caretaker Govt that the EC has deemed to be within the law.

Remember a few weeks ago the EC said the caretaker Govt could go ahead and borrow if the wanted to 'but be it on their own head', as in don't blame us .

Now it would appear they are saying 'go do it as long as the loan is repayed in the specified time', sounds pretty similar to "be it on your own head"

But now there is more desperation on the part of the caretaker govt.

Well. I am so glad that the thai legal or administrative system doesn't just flip flop around depending on the moment

[unanimosity]

Will somebody please explain what an election commission is doing approving a rice subsidy or anything else other than an election?

[Pimay1]

This would be an excellent time to invest in Mecerdes Benz, Bentley Motors and BMW stock. I expect the sales in Thailand to skyrocket withing the next few weeks.

[Thai at Heart]

Great some of the farmers will get some of the money they are owed.

But hang on the foreign trade Dept now has to sell enough rice by the end of May to repay this loan (with interest?)

So how much rice do they have to sell, well according to ORYZA web site the best they could hope for is the price of high quality Thai long grain rice at US$ 450 per ton FOB.

Thats about 14,400 B per ton at 32 b to $. Allowing for the costs of FOB say 14,000 B per ton.

Now I need someone who speaks fluent mathematics, but anyway my in the head calculation (guess) is that they need to sell around 1500 tons a day in the time they have to repay the loan.

That's in best case but I see speculation that they will be getting around 8,000 for the rice they hope to sell.

OK someone come up with proper numbers.

Less than 3 months to sell 2 million tons at 10,000bt per ton to raise 20Bn bt to pay back the loan. There is a glut of rice and more and more countries are refusing to buy Thai rice knowing that is been in storage for so long. The buyers will rather pay a bit more for rice from the new crops being harvested now and therefore guaranteed to be free of contamination. I would say 100% the loan won't be repaid by 31 May even without corruptoion.

Well if they sell twice as much volume from the warehouses as they buy from the farmers now, the sale price can afford to be half of what they pay now. They are selling at a massive loss now, just to empty the warehouse. I for one, won't be buying too much Thai rice overseas in the coming months. It must be in horrible condition.

[kimamey]

I'd be interested to know what either a 'peoples council' or another party would do if they were put in charge with only interim government authority tomorrow.

Would they pay farmers?, Would they say hard luck you may have been a victim of fraud?, Would they wash their hands of it completely?

If they would pay them, how would they do so and what would be the time frames?

I agree there is a risk if money is authorised now it will end up in the wrong hands, but in dealing with these as a single problem rather than as separate issues the farmers are the ones taking the fall in this conflict.

Well it depends how they were put in charge. I would assume they would be able to borrow the money. In a way the PTP did with the rice scheme what they weren't allowed to do with borrowing but making commitments for the next government.

Unfortunately the farmers are the ones getting the bad deal and although I don't blame them for taking the money hopefully they will see the problems with a scheme that pays so much over the top. Also whoever forms the next government has a few problems.

[kimamey]

Some common sense and a conciliatory approach by the EC. A resolution is in sight.

Sure, but what if they can't sell the rice ?

Do you then accept them to take responsibility and step down for violating the constitution. Its a double edged sword, now they have something they have to do or else. Failing this should have consequences.

What if the PDRC's non elected peoples council couldn't sell the rice either if they were to be placed in power, or the Dems for that matter?

Well they aren't making the promises but if they couldn't in the time frame they could eventually or borrow the money perhaps as was going to be done.

[Trembly]

Will somebody please explain what an election commission is doing approving a rice subsidy or anything else other than an election?

Because we're technically still in the twilight zone where the elections have yet to be concluded, which means the EC have the authority to referee the caretaker government's actions during this period.

Sent from my iPhone using Thaivisa Connect Thailand

[Pimay1]

Well that's good news for the farmers. Let's hope it gets repaid although I won't be surprised if there's a delay. We need another 30 days... and another... and another.

Of course if it doesn't get repaid we can blame the EC for not realising their duty is to be biased against the PTP government.

And just who do you think repaid the IMF before the due date??? Ye'p the very same person that so often Suthep and Dem supporters say,

What did Thaksin ever do for Thailand, you get that question answered and then you quickly and conveniently forget it.

But hey you could be right, it may well take longer to repay???

And just who do you think repaid the IMF before the due date???

You betcha and according to the Puyai Ban here he paid it off with his own personal money.

[smutcakes]

This whole charade at the moment appears like some agreement has been reached and all factions are backing out with some agreement in mind.

Without losing to much face of course.

Edited March 4, 2014 by smutcakes