Government Saving Bank may need to help on rice pleading programme | Bangkok Post: business

Business >

GSB may be called to the rescue

BAAC facing high rates as pledging risk grows

The Bank for Agriculture and Agricultural Cooperatives (BAAC) may have to turn to its fellow state bank, the Government Savings Bank (GSB), to raise funds to finance the rice pledging scheme.

Customers use services at the Government Savings Bank’s CentralWorld branch. The government may borrow money from the bank to finance its costly rice pledging scheme. PATIPAT JANTHONG

Finance Ministry sources said risk premiums charged in the interbank market for the BAAC have risen as a result of concerns about the stability of the rice pledging programme and worries by lenders about the liquidity status of the state bank.

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

Most Viewed

  • Cinemas refuse to cut ticket prices

    Thailand's leading cinema operators, Major Cineplex and SF Cinema Group, insist they will hold ticket prices at current levels, and claim their popcorn is expensive because it is imported.

Forum

image

Your comments

  • bluebottle

    ThailandPost : 1,461

    Send message

    Discussion 2 : 07 Mar 2013 at 19.242

    Could it be said that some of Mr T friends who lease paddy fields in Thailand will have done very nicely out of this scheme funded by the Thai tax payer.

  • boons

    United StatesPost : 664

    Send message

    Discussion 1 : 06 Mar 2013 at 17.101

    The GSB is going to lend the government money?? That's absurd. The GSB is a juristic person and state enterprise which operates as a financial institute guaranteed by the government under the supervision of the Ministry of Finance. This is taking money out of one pocket and putting it in the other. The only thing the GSB can do that the government cannot do is create DEBT instruments. ..Which in turn means taxpayers tomorrow will be paying for debts created today. The GSB is not "rescuing" anyone. Thai citizens are on the hook for 100% of these funds. The government is stealing from tomorrow to pay for today. Hello, Greece.

Reply

Sign in once and access every part of the website at your convenience!

Please log in to our Bangkokpost.com community to post your comment.
You can sign in to the community by clicking here.

If you are not part of the community yet, please sign up here. By being part of this community you will get all these privileges.