BAAC hopes for Bt30 bn by month-end to pay cash-strapped rice farmers

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BAAC hopes for Bt30 bn by month-end to pay cash-strapped farmers
SUPHANEE POOTPISUT,
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- THE BANK for Agriculture and Agricultural Cooperatives hopes to receive Bt30 billion by the end of this month to pay farmers who have been waiting for almost five months for money owed to them under the government's rice-pledging scheme.

BAAC president Luck Wajananawat said yesterday that Bt20 billion-worth of funding, to be released after the Election Commission (EC) recently approved a request by the government to take money from the national central budget, was likely to be transferred to the bank next week.

Disbursement of the Bt20 billion is the responsibility of the Commerce Ministry.

The amount is designed to pay farmers who were given pledging receipts and registered with the BAAC to receive money ahead of the dissolution of the House on December 9 last year.

However, Luck said it would be insufficient to meet those commitments because the total payments that were due before December 9 amounted to between Bt30 billion and Bt40 billion.

The bank hopes, therefore, to receive additional funds worth Bt10 billion - earned from the sale of rice by the Commerce Ministry - by the end of the month.

At the same time, it hopes an estimated Bt2 billion from the Farmers' Assistance Funds can be made available in the same time scale, he added.

"The funds should be completely paid to the farmers [that pledged rice in November] and cover all of the country," caretaker Commerce Minister Yanyong Phuangrach said recently.

In addition, the BAAC president said there was still the option of obtaining more funds via the issuance of a savings bond.

More details on the bond issuance are expected to be given in the next two weeks.

Initially, the Finance Ministry said it was unlikely to guarantee the bonds. However, bonds issued without a guarantee by the government would take another two months for filing with the Securities and Exchange Commission, in line with the agency's rules and regulations, said Luck.

Meanwhile, the EC yesterday said it was not itself worried whether the Bt20-billion fund to be taken from the central budget is returned in full by the deadline of May 31.

Election commissioner Somchai Srisuthiyakorn said it was for high-ranking officials to ponder whether the Commerce Ministry could sell rice in sufficient quantities to generate enough money to return the sum to the Finance Ministry.

If not, it would be the Finance Ministry's duty to recall the funding from the Commerce Ministry.

Thai Rice Farmers Network chairman Rawee Rungrueng yesterday said the government still lacked the ability to obtain anything like a funding amount equal to what it owed the farmers - that is, almost Bt120 billion.

The amount being released from the central budget only partially eases the burden on cash-strapped farmers, he said.

The Foreign Trade Department on Tuesday announced a tender involving general bidding for 496,556 tonnes of white, jasmine and provincial fragrant rice on March 10.

Those who intend to join the bidding can offer prices at the Commerce Ministry in Nonthaburi from 9am to 4.30pm.

Meanwhile, Sunthorn Payak, vice president of the Lawyers Council of Thailand, which is acting on behalf of 30,000 farmers, on Tuesday said the council was preparing legal documents to file a lawsuit with the Administrative Court in the provinces against caretaker Prime Minister Yingluck Shinawatra and 11 other persons for being in violation of the Constitution.

Compensation will be claimed for damages over the failed rice-pledging scheme, while the courts will be asked to order the government to open the state's granaries, the lawyer said.


-- The Nation 2014-03-06

[Bluespunk]

"BAAC hopes for Bt30 bn by month-end to pay cash-strapped farmers'

Again

[chainarong]

My, this is good news, I was beginning to think the rice farmers had been forgotten , the only question one needs to ask , which month ,all the other farmers of Thailand must be rubbing their hands with glee , not being offered such a generous scheme.

[northernjohn]

How many times were they promised in February?

Apparently I keep forgetting it is OK to tell a lie with this government if it makes people feel good.

[Davidhere]

"BAAC hopes for Bt30 bn by month-end to pay cash-strapped farmers'

Again

The proverbial "next week" has been modified into "end of the month".

[JRSoul]

I hope Miss Thailand will show up at my place with a case of Chang looking for a bit of horizontal folk dancing. I reckon the odds are about the same.

BTW "Disbursement of the Bt20 billion is the responsibility of the Commerce Ministry." How much is that after "tax".

[marko kok prong]

More bs.

[Barney R]

And by the end of the month will be modified to "mid year " . Remember this is only 30 bn what about the other 100 bn + . 5555 I would love to take the governments spin doctors with me next time I go to a bank for a loan , I am sure I would be able to get millions ,interest free and pay back .............never 555555

[Robby nz]

BAAC president Luck Wajananawat said yesterday that Bt20 billion-worth of funding, to be released after the Election Commission (EC) recently approved a request by the government to take money from the national central budget, was likely to be transferred to the bank next week.

But

The Senate committee on Fiscal, Financial, Banking and Monetary Institutes, yesterday called a meeting of government agencies involved in the approval of Bt20 billion from the central budget, that will be paid to the farmers, to see if the practice was legal. Many officials could not answer several questions raised by the panel members, who said another meeting was needed to discuss the issue.

So they first need the OK from the senate committee, in other words they haven't got it yet.

Meanwhile, the EC yesterday said it was not itself worried whether the Bt20-billion fund to be taken from the central budget is returned in full by the deadline of May 31.

Election commissioner Somchai Srisuthiyakorn said it was for high-ranking officials to ponder whether the Commerce Ministry could sell rice in sufficient quantities to generate enough money to return the sum to the Finance Ministry.

If not, it would be the Finance Ministry's duty to recall the funding from the Commerce Ministry.

Assuming the loan goes through then the commerce ministry has to find 20 billion plus interest (presumably) to repay the loan by May 31st.

So the first priority from any rice sold will be to repay the loan NOT to pay the farmers.

It gets more and more convoluted and does not look a great deal better for the long suffering farmers, who, even if all these hopes are realized, will still be owed around 100 billion.

[kikoman]

Great news the EC has stopped trying to stop the government efforts to pay the farmers as since December 9, 2013 only the EC could approve government requested loans.

If they would have offered that approval last year so much suffering would have not visited the nation's rice farmers,but the EC tried every underhanded trick to try and blame the government for the EC decision!

But now the EC took a step in the right direction!

Cheers

[Rob8891]

Great news the EC has stopped trying to stop the government efforts to pay the farmers as since December 9, 2013 only the EC could approve government requested loans.

If they would have offered that approval last year so much suffering would have not visited the nation's rice farmers,but the EC tried every underhanded trick to try and blame the government for the EC decision!

But now the EC took a step in the right direction!

Cheers

The Spin Doctor has spun.......

[mowgus]

Yes BAAC, I would like 100 of your no-guarantee bonds please....and I'll pay you for them around the end of the month.

[thesetat2013]

Mind you they expect to have this money. It is not there so nothing is for sure. Also in a related article i read that this 20bt is being challenged wether it is legal since they are still putting the next GOV in debt by taking from the central fund and promising to pay it all by May.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[Costas2008]

"BAAC hopes"

Please, concentrate on the word "hopes".

I, also hope, I will have 20million Baht, by next week, but this will never happen.

[JesseFrank]

BANGKOK: -- THE BANK for Agriculture and Agricultural Cooperatives hopes to receive Bt30 billion by the end of this month to pay farmers who have been waiting for almost five months for money owed to them under the government's rice-pledging scheme

Ahem, BAAC would need at least another 100 Billion on top of that 30 Billion to accomplish that mission .

By the way, because they are promised 20 Billion doesn't mean that a single swallow makes summer.

[Dogmatix]

There is a snow ball's chance in hell that the caretaker govt will repay the B20bn to the central budget from rice sales by 31 May. China has announced its first g2g purchase of 1m tons, assuming this is genuine, but it wants deliver staggered over a year.

[tomacht8]

Alternatively, they can also close Charlems CMPO.

Then they would have immediately a 20 billion baht budget free.

[PepperMe]

Since the EC granted that 20BN loan, they have been under attack once again from the government with threats to sue etc etc.....

If I were Somchai, I would withdraw that permission to borrow immediately.

See how you like them apples.

[smedly]

I predict that civil servants will not be paid when this money is released

[pb1936]

More desperate delaying tactics, unfortunately.

[slipperx]

Unfortunately the farmers are 'hoping' on Yinglucks wing and a prayer. Why didn't she sort the payments out when they were due last September? Why let the situation develop where the people she was supposedly trying to help are the ones who are left to suffer at the mercy of the scumbag money lenders?

You might try to call it an oversight but I don't think she is that stupid in which case ones thoughts turn to reasons somewhat more concerning!

[Scamper]

The EC's decision is constitutionally astonishing, as it expects repayment of the loan by May 31. How can it possibly apply such reasoning when the administration ceased two days ago as per Article 127 - a view apparently strong enough to be already shared by two former members of the Supreme Court ? What gives the EC the confidence to see three months in advance ? The constitutional restrictions are immense - from a myriad of articles.

[almafudd]

Great news the EC has stopped trying to stop the government efforts to pay the farmers as since December 9, 2013 only the EC could approve government requested loans.

If they would have offered that approval last year so much suffering would have not visited the nation's rice farmers,but the EC tried every underhanded trick to try and blame the government for the EC decision!

But now the EC took a step in the right direction!

Cheers

Why do you continuously twist the truth into a lie?

<deleted> you know FULL WELL the money was due before December and the Government of the day had NO PLAN to pay it or subsequent rice payments!!!

STOP SPREADING LIES...