BANGKOK, Feb 18 – Thailand’s Government Savings Bank (GSB)’s executive board today cancelled a Bt20 billion interbank loan to the Bank of Agriculture and Agricultural Cooperatives (BAAC) and recalled its Bt5 billion loan already granted.
Acting GSB president Worawit Chailimpamontri, who resigned from his post this afternoon amid cheers from the bank staff, said he had no idea the BAAC would ask for loans for the rice pledging scheme.
Mr Worawit, whose resignation will be effective within 30 days, vowed to do all means to bring back customer confidence following recent massive deposit withdrawals at GSB branches particularly in Bangkok, outlying areas and in southern Thailand.
He said an interbank loan is usually for a 30-day period. Mr Worawit asserted his innocence of not knowing the BAAC’s purpose of the Bt5-billion loan, for he said the loan documents were indicated to increase the BAAC’s liquidity without specifying details.
Judging from the BAAC’s stability and its original liquidity, the GSB decided to provide the bank the loan, he said. However, the loan has now been suspended and can be recalled if it is for the wrong purpose, Mr Worawit noted.
Meanwhile, local residents in southern Thailand continued a run on local GSB branches for cash withdrawals.
In Phatthalung province, Bt30 million was reserved following yesterday’s withdrawals of Bt20 million, while a local branch in Chumphon provided only Bt2,000 per withdrawal owing to a shortage of cash.
In Songkhla’s provincial seat, almost 100 depositors queued up at the bank for withdrawals after the bank was opened for 10 minutes.
Cashier cheques were issued to customers at some GSB branch in the South due to the cash shortage.
On a different note, some enterpreneurs descended on GSB’s Bangkok headquarters Tuesday afternoon to open new bank accounts there.
Businesswoman Chanya Sawangjit took a cheque for Bt200 million for a new bank account, saying she was confident in the GSB’s financial status and agreed with the bank’s previous decision to provide a loan to the BAAC.
Wiwat Theekhakhirikul, chairman of Karmarts Plc, an importer and distributor of cosmetics, facial care and personal care products, also opened a new account of Bt70 million at the bank.
Meanwhile, a meeting of the Pheu Thai Party on Tuesday agreed that its leaders led by former prime minister Somchai Wongsawat and other key figures of the party open new bank accounts at a GSB branch in the capital.
Mr Somchai said the new savings will be to add liquidity to the GSB and to help disgruntled rice farmers. He said such move was to campaign so that the public would put more savings into the bank to compensate the amount withdrawn by other depositors. He said he hoped that the bank’s better liquidity could better assist the farmers.
Pheu Thai Party members opened 10 accounts with the bank at the total sum of Bt3 million. During the process, some anti-government protesters whistled to drive out the Pheu Thai members in front of the bank. However, the latter did not pay attention to the demonstrators.
