Thai govt to quickly seek funding source for this month's rice pledging payment

[webfact]

Govt. to quickly seek funding source for this month’s rice pledging payment

BANGKOK, 1 April 2014 (NNT) - The Public Debt Management Office (PDMO) is reportedly seeking ways to fund pending payments worth approximately 20 billion baht under the rice pledging scheme this month.

Miss Chularat Sutheetorn, the PDMO Director General, said after her meeting with Finance Minister Kittiratt Na Ranong that the PDMO is considering multiple approaches to acquire the money but declined to reveal the details at the moment.

Referring to a proposal by the Bank for Agriculture and Agricultural Cooperatives (BAAC) to sell bonds to raise funds for the program, Miss Chularat said the BAAC could either issue the bond itself or ask the Finance Ministry to act as guarantor as both approaches are legal.

However, according to a BAAC source, the bank in its recent meeting concurred not to issue the bond, reasoning that the move would post too much legal and financial risks to the bank.


-- NNT 2014-04-01

[khwaibah]

[bigbamboo]

They could always raise the tax on imported wine again to raise cash and so only high end tourists can afford to drink it.

That would kill two birds with one boom stick.

Edited April 1, 2014 by bigbamboo

[Pimay1]

Referring to a proposal by the Bank for Agriculture and Agricultural Cooperatives (BAAC) to sell bonds to raise funds for the program, Miss Chularat said the BAAC could either issue the bond itself or ask the Finance Ministry to act as guarantor as both approaches are legal.
However, according to a BAAC source, the bank in its recent meeting concurred not to issue the bond, reasoning that the move would post too much legal and financial risks to the bank.

It appears Miss Chularat is slightly behind on current events.

[Thait Spot]

They will have a huge debt to repay next month

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[thesetat2013]

They have not even begun to repay the 20bill they already owe at the end of this month.

Now they want more? How can they catch up if they keep getting money this way. Thailand will be owned bankrupt if they don't end this scheme

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[Gunna]

They will have a huge debt to repay next month

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PT doesn't care as they never had any intention of repaying the loan - ask most Farangs or even Thais who have loaned money to a Thai person.

They are now just trying to appear to pay as many farmers as they can before the next election to slow anti government demonstrations by farmers with more empty promises

[Scamper]

The mismanagement and shortsightedness of Pheu Thai is really something to behold. They suddenly realize they need money. So they borrow it. When the time comes to pay the loan back, they don't have the cash. So they borrow more money. This is basically how Pheu Thai governed on a day to day basis when they were in power, and that is why the rice scheme skyrocketed the debt of the country beyond anyone's imaginings. Now that they are ( reputedly ) in perpetual caretaker status - all these embarrassing administrative reflexes are exposed for all to see. And it isn't pretty. Almost all the optimism comes from the administrative side. But when push comes to shove, and the usual suspects emerge that tend to damper the enthusiasm ( banking protocol, the constitution, the legal system ), then they realize that it's time for yet another pipe dream. Pheu Thai was so confident that rice sales would go swimmingly. But then again, they simply don't think things through. Pheu Thai is generally only one step ahead of the creditors. Because they have this sense that they can do anything, they simply will money to appear. It worked before, after all. But there are increasing limits as to what they can do. And whatever is left, is swept up in sheer incompetency.

[WoopyDoo]

Sorry PTP, but you can't rally get the BAAC to issue government bonds by proxy.

When guaranteed by the Finance Ministry, they are essentially 'government bonds by proxy and nothing else.

Also the Finance Ministry can't guarantee these bonds without the budget already set aside for it, and that would be the exact same as saddling a future government with debts which is against EC regulations.

Of course the PTP could have gone directly to the EC again 'cap in hand' and begged for another 20 Billion with the same conditions as last month's... But alas, the moment last month's agreement from the EC was signed off by them, your ministers repeatedly attacked the EC and have threatened them with all sorts of legal actions in repayment for the EC's benevolence.

So I doubt asking the EC once again to be benevolent with them is going to fall on deaf ears. That is called 'Sh*tting in your nest'.

It is about time you told the rice farmers the truth, and that this government is unable to pay them their money and they won't be getting it unless there is a new parliament, or an interim government put in place.... In which case, the farmers will finally realize that they are better off without the current government.

The farmers also should wake up to the fact that with the government having all this rice to sell, that the farmer's next crop is going to be going into a head on collision with the government being their number one competitor. Prices will plummet as the exporters around the world take full advantage of this situation, which will knock on to a global price drop... That is how it works.

They will also have to get used to the idea that the rice scheme is also over, and that there is no mechanism in place with this current rabble clinging to caretaker power for any new subsidies to be handed to them... So they are going to get shafted from three sides at once.

Plummeting prices

Huge competition from the government with the farmer's old rice still unpaid for (the irony)

No subsidies.

That is something that you can ONLY blame the PTP for.

That is the cost of selling your vote for artificial financial stimulus policies designed to get your vote so they can steal the majority of the money from the scheme as well as millions of tonnes of your rice.

Come September, it won't be the million so far unpaid rice farmers that are going to be mega-pissed, it is going to be all 4.6 million rice farming families that have become dependent on this now dead scheme.

Welcome to your future dealt by your own hand.

Edited April 1, 2014 by WoopyDoo

[ramrod711]

What possible defense can there be for this, the person in charge of this boondoggle would be fired for negligence anywhere in the world. Some people will insist that it's all just an effort to get rid of Yingluck, if she was in charge, as she states, she should be gone.

[ggold]

Are there any Red stooges that would like to contribute to this topic, in the name of debate of course! didn't think so!!!!!!

[ggold]

I think you'll find the 20 bln they want this time is not fo the farmers but to pay back the EC before the May deadline!

[rubl]

All of this is in ADDITION to the 700++ billion still outstanding at the BAAC and which the Yingluck government stood guarantee for, or actuallt the rice mountain stood guarantee for. As it would seem that the rice mountain may just be enough to paid those 130 billion the government tried to borrow in addition, the BAAC may be left with a 700++ hole in the ground. Anyone here who has an idea on how much this hole may grow with due interest not being paid?

[winstonc]

very quiet on the red front ...the silence speaks volumes...

[chainarong]

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The mismanagement and shortsightedness of Pheu Thai is really something to behold. They suddenly realize they need money. So they borrow it. When the time comes to pay the loan back, they don't have the cash. So they borrow more money. This is basically how Pheu Thai governed on a day to day basis when they were in power, and that is why the rice scheme skyrocketed the debt of the country beyond anyone's imaginings. Now that they are ( reputedly ) in perpetual caretaker status - all these embarrassing administrative reflexes are exposed for all to see. And it isn't pretty. Almost all the optimism comes from the administrative side. But when push comes to shove, and the usual suspects emerge that tend to damper the enthusiasm ( banking protocol, the constitution, the legal system ), then they realize that it's time for yet another pipe dream. Pheu Thai was so confident that rice sales would go swimmingly. But then again, they simply don't think things through. Pheu Thai is generally only one step ahead of the creditors. Because they have this sense that they can do anything, they simply will money to appear. It worked before, after all. But there are increasing limits as to what they can do. And whatever is left, is swept up in sheer incompetency.

Imagine with a 2.2 Tn Bht loan

[chainarong]

Has any farmer been paid for last October yet , all the other farmers , farming away, must be pissin themselves with laughter at this lot.

[Sayonarax]

They have not even begun to repay the 20bill they already owe at the end of this month.

Now they want more? How can they catch up if they keep getting money this way. Thailand will be owned bankrupt if they don't end this scheme

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

Hay it works for America, why not Thailand.

[kamahele]

it just gets sadder and sadder

[Brian Corrigan]

Banks in Surin are paying the farmers. If the farmers are willing to hand in their pledging receipts,the banks will give them the value of their pledged rice and take 10% interest before they hand over the balance of the money.The banks will then wait for the Government to pay them.In other words,the banks will use their own liquidity and the farmers loose 10% of the value of their pledged rice. Nice one! Or maybe the banks do have the cash from the Government and have found another way of making money off the farmers?

Edited April 1, 2014 by Brian Corrigan

[SOTIRIOS]

.....20 billion borrowed.......how many times over.......???

[Old Man River]

The mismanagement and shortsightedness of Pheu Thai is really something to behold. They suddenly realize they need money. So they borrow it. When the time comes to pay the loan back, they don't have the cash. So they borrow more money. This is basically how Pheu Thai governed on a day to day basis when they were in power, and that is why the rice scheme skyrocketed the debt of the country beyond anyone's imaginings. Now that they are ( reputedly ) in perpetual caretaker status - all these embarrassing administrative reflexes are exposed for all to see. And it isn't pretty. Almost all the optimism comes from the administrative side. But when push comes to shove, and the usual suspects emerge that tend to damper the enthusiasm ( banking protocol, the constitution, the legal system ), then they realize that it's time for yet another pipe dream. Pheu Thai was so confident that rice sales would go swimmingly. But then again, they simply don't think things through. Pheu Thai is generally only one step ahead of the creditors. Because they have this sense that they can do anything, they simply will money to appear. It worked before, after all. But there are increasing limits as to what they can do. And whatever is left, is swept up in sheer incompetency.

Our country can get away with this, as we are one of the world's biggest producers, but who persuaded the PTP that Thailand is the US?

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[bangon04]

Has any farmer been paid for last October yet , all the other farmers , farming away, must be pissin themselves with laughter at this lot.

"This month" as in the title, seems to refer to April, so it sorta implies that they met their obligations already for last month ie March.

Is this even vaguely true?

[bangon04]

Has any farmer been paid for last October yet , all the other farmers , farming away, must be pissin themselves with laughter at this lot.

except for those who are seriously considering suicide, of course...

[skorchio]

Apparently all the extra rice planted is also putting pressure on the water supplies, exacerbating the drought situation in may provinces. That has got to piss people in non-rice provinces off if they start rationing to keep the paddys wet and paying the farmers also?

[BillyBobThai]

Time to start making rice wine with all of this mountian that is now going bad.

[ratcatcher]

Time to start making rice wine with all of this mountian that is now going bad.

Oh! For goodness' Sake.

[tiffanystoyz]

Thai economics 101 If you buy votes and lie best to get loan to payoff those bribed then default on loan, then you can place blame on lack of tourist because of protest, also keep filing lawsuits to confuse the people so they think your smart and doing your job while you rob them blind.