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BAAC asserts it has adequate loans for rice pledging scheme
Thailand’s only state bank for farmers stood firm last week that it is
financially sound and has sufficient funds to fulfill the government’s rice
pledging scheme through the new harvest despite a required fresh loan of
Bt240 billion.
Bank of Agriculture and Agricultural Cooperatives (BAAC) deputy manager
Boonthai Kaewkanti said the bank has reserved a special fund for the
purchase of paddy stocks, targeted at 15 million tonnes in the 2012-2013
harvest, while the government will pay back its loans from its sales of rice
from the previous year.
Farmers have gradually transported their paddy to be sold at various
locations established by the government under the rice pledging scheme, he
said, adding that the latest trading volume was reportedly at more than 1
million tonnes.
Nakhon Phanom Governor Anukul Tangkananukulchai said drought lately has
affected the quality of rice sold to the government under the scheme,
compelling farmers to release their produce at a lower price. The government
sets a pledging price of Bt15,000-20,000 per tonne.
In Buriram province, the provincial rice monitoring committee has asked the
Internal Trade Department to set up 10 more rice purchasing sites to
facilitate farmers in remote areas. (MCOT)
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Bank of Thailand maintains policy
interest rate at 2.75%
The Bank of Thailand (BoT) maintained its policy interest rate at 2.75
percent, saying the current policy rate remained accommodative and conducive
to growth.
BoT Monetary Policy Committee (MPC) secretary Paiboon Kittisrikangwan
announced the outcome of Wednesday’s meeting saying the MPC voted
unanimously to maintain the policy rate at 2.75 percent. The MPC will remain
vigilant in monitoring global and domestic economic developments and stand
ready to take appropriate policy action as warranted.
The MPC viewed that, with downside risks to growth subsided and inflationary
pressure in check, the current policy rate remained accommodative and
conducive to growth.
The Thai economy continued its positive growth momentum from the previous
meeting. The global impact has so far remained limited only to export
related sectors, while the greater than expected strength in domestic demand
appeared to provide sufficient cushion against the adverse impact of the
slowdown in exports, the central bank said in its statement.
Going forward, exports were projected to recover in the first half of 2013
on the back of anticipated improvement in the global economy. Private
consumption and investment will continue to be the main growth drivers for
the economy, supported by strong private sector confidence and accommodative
monetary conditions with high credit growth. Inflationary pressure
stabilized at a moderate level close to the previous meeting, it said.
The global economic outlook showed signs of stabilization on the back of
better than expected economic data, especially from the US and China. There
was sustained improvement in the US labour and housing markets, although the
fiscal cliff remains a key risk factor. China’s economy appeared to regain
traction with recent strengthening in all key areas including exports,
domestic consumption and investment, according to the statement.
Meanwhile, the central bank said the eurozone economy contracted, but the
economic and financial outlook of the region was projected to become more
stable next year as resolution of the euro debt crisis becomes more concrete
and the core economies continued to expand in tandem with improvement in the
global economy.
Against this backdrop, the outlook of Asian economies has gradually improved
with signs of recovery in exports, and a recent pickup in China’s economy.
(MCOT)
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