BAAC may lose B6bn on debt plan
Ex-official worries bank may go bust
- Published: 27 Apr 2012 at 00.00
- Newspaper section: Business
A government plan to suspend debt payments for farmers could have a significant impact on the liquidity and credit rating of the Bank for Agriculture and Agricultural Cooperatives (BAAC).
One former BAAC senior executive said up to 90% of the funds used by the state bank came from loan repayments, with the rest generated through investment activities.
Allowing customers to voluntarily suspend their principal payments with no restriction could have a massive impact on the bank's finances.
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