BANGKOK, 6 February 2014 The Bank of Thailand (BOT) has asserted it will not interfere with commercial bank’s judgement regarding provision of loans to the government in order for the latter to pay to farmers under the rice mortgage scheme.
According to BOT assistant governor for Supervision Group Salinee Wangtal, the Wednesday’s meeting between the BOT and commercial banks did not involve a discussion on banks lending funds to the government to finance the rice subsidy project. The decision whether or not to lend money for rice mortgage rested on the banks, and the BOT would not interfere. She also noted that there had been no reports of money withdrawals made at banks due to fears over any decision by the banks to lend money to finance rice subsidy.
Lak Watchananawat, head of the Bank for Agriculture and Agricultural Cooperatives, said on Wednesday that the bank was extending debt repayment period for indebted farmers who had not yet been paid under the rice mortgage scheme. The farmers would also be entitled to a higher loan ceiling, if they wishes to borrow more money to invest in the new planting season. He said this would alleviate farmers’ troubles and reduce the problem of underground lending.
