Prime Minister Srettha Thavisin denied rumours that people had begun withdrawing money from the Bank for Agriculture and Agricultural Cooperatives (BAAC) following news the government plans to borrow 172.3 billion baht from the bank to partially finance its 500-billion-baht digital wallet handout scheme.
He said on Friday that the claims about a run on the bank were untrue, and the BAAC had already issued a statement confirming its financial stability.
Mr Srettha also stressed the government's intention to seek the Council of State's opinion about the legality of the borrowing plan before proceeding with it, saying that the government would ensure transparency and be open to scrutiny.
In its statement, the BAAC said it was a state-run bank which aims to provide assistance to farmers and cooperatives under the BAAC law. It has participated in several government schemes and managed its liquidity effectively.
According to the BAAC, the digital wallet handout is another government programme to help farmers, and the bank is working on coordinating the details of this programme to ensure that it is implemented within the legal framework and with proper risk management procedures in place.
The rumours about cash withdrawals and the BAAC's statement came after the government announced early this week that the digital wallet scheme would be financed by three sources of funding.
They were 152.7 billion baht from the budget for the 2025 fiscal year; 175 billion baht from the reallocation of budget in the current fiscal year; and 172.3 billion baht to be borrowed from the BAAC.
The portion from the BAAC would be borrowed in line with Section 28 of the State Fiscal and Financial Disciplines Act, and the amount would be given to 17.23 million farmers.
Meanwhile, government spokesman Chai Watcharonke on Friday criticised the release of a clip in which Paisarn Hongthong, assistant manager of the BAAC, appeared to object to the borrowing plan due to concerns about the bank's liquidity.
He said his team contacted Mr Paisarn for clarification and was told that the interview in the clip was given about a week before the digital wallet announcement on Wednesday.
At that time, Mr Paisarn was asked about the 500 billion baht earmarked for the entire scheme, so his answer appeared to be about the bank's liquidity.