28,000 Thai Farmers to Receive 4 Billion Baht Debt-Relief

[rubl]

I appreciate the Junta's support for populist policies to provide immediate economic relief to a targeted group of people in the Thai society who are in need of financial assistance:

- 28,000, will have 4 billion baht in debt waived

- 300,000 and 400,000 to have debt restructured with principle suspended for 3 years

- 450,000 to have repayment periods extended with fines waived

Last year the Junta-led government through the BAAC distributed Bt30-billion to 2.8 million rice farming families, established a Bt10-billion budget to shore up the price of concentrated latex for rubber farmers, approved milk price hikes for dairy farmers, and through BAAC injected Bt3-billion to help the cassava farmers to delay cassava harvests.

BUT

Farmers are not the only Thais affected adversely by debts. The Junta needs to develop a comprehensive agriculture plan and general economic plan that helps ALL Thais with debt issues. The Junta needs to institute necessary economic safety nets, massive governmental investments, and stimulate the business environment to create a growing economy.

Thus far, the government only seems capable of providing quick handouts and subsidies that do not fit into any overall economic strategy. Eventually, the Junta's targeted economic distributions will burden the government budget in 2016 which will further hamper implementation of any overall economic support system given a continued stagnation of the economy and decreasing tax revenues.

Agree. The current government should drop all unnecessary activities and concentrate on a comprehensive agriculture plan. For too long governments have ignored this.

I'm puzzling a bit with the 'general' economic plan, for all Thai with debt issues. Although surely less debt will stimulate the economy, I don't think it's a structural approach to concentrate on debts in general economics. Also not all Thai with debt issues should qualify. After 1997 we had strategic NPL cases and even MPs have debt (as listed in their asset declarations). In my eyes an economic plan would be to stimulate business, entrepeneurs, education and so.

Of course, the topic is only concerned with farmers.

Edited April 3, 2015 by rubl

[rubl]

... ...

After the military coup in May 2014 and abolishment of the Constitution, one of the Junta's first acts was to ORDER the sale of treasury bonds to generate funds to pay the farmers at Yingluck's rice pledge prices. That's where the Bt700 billion went. It was paid out to the rice farmers and the Junta has committed the government to pay back the treasury bonds over the next ten years from Thai tax collections.

Ironically, the Junta has now done a similar program with rubber farmers. it is buying and stockpiling rubber latex at higher than market prices. It then hopes as did Yingluck to put pressure on the world supply to increase prices above the government paid prices.

No need to lie about this, my dear rickers.

The NCPO only borrowed enough money to pay outstanding bills, those 'forgotten' by the Yingluck administration, those the Yingluck administration hadn't covered with reservations.

2013-09-25

"Prime Minister Yingluck Shinawatra has said the government was not considering further loans because it would have enough money from selling rice from its stocks to fund the scheme.

The cabinet has said it would spend no more than 270 billion baht for the scheme in the year from October 2013 to September 2014.

Early this month, Commerce Minister Niwatthamrong Boonsongphaisan said, "Since the cabinet has approved the budget of 270 billion baht for the scheme, it is the duty of the Finance Ministry to figure out how to get the money."

The BAAC source, who declined to be identified because of the sensitivity of the issue, said, "The Finance Ministry will need to guarantee another loan (from the BAAC) by the end of this month.""

http://www.reuters.com/article/2013/09/25/us-thailand-rice-idUSBRE98O06Q20130925

ADD: With the caretaker government suddenly trying to borrow 130 billion Baht, with managing a borrow a bit left and right and some sales, the NCPO 'only' needed a bit less than 130 billion to pay the obligations it had 'inherited'.

Edited April 3, 2015 by rubl

[maidee]

so that is why they want everybody to declare tax

to give away for the people who don't plan for tomorrow

[Fat Haggis]

The glaring issue I see from this scheme was there was more of a supply within Thailand then there was a demand, as far back as 2012 late 2012 there were concerns about the huge stockpiles and not enough room.

The paddy pledging programme continues to attract much controversy, amid concerns over its

negative implications for the export sector and hefty cost to the state. Whilst a separate budget is

expected to be approved for the extension of the programme to cover the offseason harvest, total

expected outlays for the full 2012/2013 have been indicated at Baht 405 billion (USD 13.1 billion).

Moreover, with the

2011/2012 run of the programme having been extremely successful at absorbing

a large share of domestic produce, thanks to its attractive terms which offer producers prices up to

40 percent above prevailing market levels, the massive public stockpiles accu

mulated so far are already reported to have put significant strain on the country’s storage capacity

That was taken from a Rice Market Report from November 2013. The Negligence is allowing the scheme to continue by paying farmers 40% more than market price, and with them capitalizing on this by producing more to make more money, it was never going to do anything but lose huge sums of money.