Thai Govt. seeks $ 3.95 b in loans to fund rice scheme

Friday, 31 January 2014 00:57 - - {{hitsCtrl.values.hits}}

REUTERS: The Thai Government, struggling to fund a controversial rice-buying scheme, will seek bridging loans of 130 billion baht ($ 3.95 billion) to pay farmers who have been waiting months for their money, a state farm bank official said on Wednesday. Farmers have been blocking roads in protest at the late payment in some provinces and some have threatened to join anti-government protests in Bangkok. The Government, acting through the state Bank of Agriculture and Agricultural Cooperatives (BAAC), is paying farmers well above the market rate for their rice. This has priced Thai grain out of export markets and the Government has been unable to sell enough to replenish the buying fund. “The Finance Ministry will guarantee another 130 billion baht loan for the BAAC to borrow. We have sent invitations to domestic financial institutions and a first auction is due to start on 30 January,” Wanchai Siriwatanatrakul, Director in charge of government policies at BAAC, told Reuters.