BAAC expects to complete rice payments within this week


BANGKOK, 2 June 2014,  – The Bank for Agriculture and Agricultural Cooperatives (BAAC) expects to use up its fund reserved for payment to farmers in the rice pledging scheme within this week.

Executive Vice President of the BAAC Supat Eauchai reported that during May 26 – May 31 the bank had paid 34.7 billion baht to 345,000 farmers. The sum was part of the 40-billion-baht budget the bank has allocated from its liquidity fund for the purpose. Mr. Supat expected the allocation would be exhausted within June 5th.

He said the the Public Debt Management Office under the Ministry of Finance would be in charge of seeking a loan of 50 billion baht to pay for the remaining debts the government owes to farmers, while reassuring farmers that payment would still be completed within June 22nd.

All the 11 branches of the Bank for Agriculture and Agricultural Cooperatives (BAAC) in Nakhon Phanom province, opened over the weekend to speed up payments to farmers under the rice-pledging scheme.

A total amount of 650 million baht has been paid to around 7,000 farmers in this province while another 700 million baht will be paid to 7,000 more farmers within three days after the allocation is available, said Surachai Paijithathai, director of the BAAC branch in Nakhon Phanom.

Meanwhile, Miss Jularat Suthithorn, Director General of the PDMO, is looking into ways to pay back the 40 billion baht sum to the BAAC. She is initially considering to issue 1-3 year short term bonds to replenish the BAAC’s liquidity.