Massive withdrawals from Thai banks reported

BahtLocal media reports in Thailand on February 5 said that bank customers withdrew about 9 billion baht ($273 million) from their accounts at two state-owned and one private bank in a week out of fear these banks would get involved in loan programmes for the government’s rice pledging scheme and could face liquidity problems.

The banks in question are Government Savings Bank, Krungthai Bank and TMB Bank. All of them, however, denied that they plan to offer loans to finance the scheme which needs around 120 billion baht ($3.6 billion) immediately.

The Bank of Thailand was quick to release a statement on the same day in order to quiet the issue down.

“Following a public scare over the government’s attempt to seek loans from banks to fund the rice pledging scheme, the Bank of Thailand has confirmed that no significant changes have been found in the volume of cash withdrawal,” the bank said, adding that “cash withdrawals were still within the acceptable level.”

Meanwhile, the Bank for Agriculture and Agricultural Cooperatives (BAAC) which is in charge of paying off the farmers, has offered a six-month debt moratorium for rice growers affected by the delayed rice payments, BAAC president Luck Wajanawat said on February 5.

The bank is also ready to consider approving new loans for farmers in need of money for new crops to help ease their problems. The new loans will also prevent farmers from falling prey to loan sharks, he said.

According to industry sources, Thailand expects to export 7.5 million tonnes of rice this year after losing its ranking as the world’s top rice exporter to India and Vietnam two years ago. The Thailand Development Research Institute estimates that the scheme has lost the government more than 400 billion baht ($12.3 billion) in its first two years.

In another blow to the government, China has cancelled a recent agreement to purchase 1.2 million tonnes of rice from Thailand, due to fears over investigation of the Thai government by the National Anti-Corruption Commission for “lack of transparency”.



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Local media reports in Thailand on February 5 said that bank customers withdrew about 9 billion baht ($273 million) from their accounts at two state-owned and one private bank in a week out of fear these banks would get involved in loan programmes for the government's rice pledging scheme and could face liquidity problems. The banks in question are Government Savings Bank, Krungthai Bank and TMB Bank. All of them, however, denied that they plan to offer loans to finance the scheme which needs around 120 billion baht ($3.6 billion) immediately. The Bank of Thailand was quick to release a...

BahtLocal media reports in Thailand on February 5 said that bank customers withdrew about 9 billion baht ($273 million) from their accounts at two state-owned and one private bank in a week out of fear these banks would get involved in loan programmes for the government’s rice pledging scheme and could face liquidity problems.

The banks in question are Government Savings Bank, Krungthai Bank and TMB Bank. All of them, however, denied that they plan to offer loans to finance the scheme which needs around 120 billion baht ($3.6 billion) immediately.

The Bank of Thailand was quick to release a statement on the same day in order to quiet the issue down.

“Following a public scare over the government’s attempt to seek loans from banks to fund the rice pledging scheme, the Bank of Thailand has confirmed that no significant changes have been found in the volume of cash withdrawal,” the bank said, adding that “cash withdrawals were still within the acceptable level.”

Meanwhile, the Bank for Agriculture and Agricultural Cooperatives (BAAC) which is in charge of paying off the farmers, has offered a six-month debt moratorium for rice growers affected by the delayed rice payments, BAAC president Luck Wajanawat said on February 5.

The bank is also ready to consider approving new loans for farmers in need of money for new crops to help ease their problems. The new loans will also prevent farmers from falling prey to loan sharks, he said.

According to industry sources, Thailand expects to export 7.5 million tonnes of rice this year after losing its ranking as the world’s top rice exporter to India and Vietnam two years ago. The Thailand Development Research Institute estimates that the scheme has lost the government more than 400 billion baht ($12.3 billion) in its first two years.

In another blow to the government, China has cancelled a recent agreement to purchase 1.2 million tonnes of rice from Thailand, due to fears over investigation of the Thai government by the National Anti-Corruption Commission for “lack of transparency”.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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