PUBLISHED: 13 Apr 2024 at 04: 00
Following news that the government plans to borrow 172.3 billion baht from the bank to partially finance its 500 billion baht digital wallet handout scheme, Prime Minister Srettha Thavisin yesterday denied rumours that people had begun withdrawing money from the Bank for Agriculture and Agricultural Cooperatives ( BAAC ).
He claimed that the BAAC had previously released a statement confirming its financial stability, and that the statements about a run on the bank were unfounded.
Mr. Srettha also emphasized that the government would maintain transparency and remain open to attention before proceeding with the loans program. He also emphasized that the state would pursue the Council of State’s opinion before proceeding with it.
The BAAC stated in its statement that the organization is a state-run lender that works to support farmers and cooperative in accordance with the BAAC laws. It has participated in a number of government initiatives and properly managed its profitability.
The lender is coordinating the details of the digital wallet flyer to make sure that it is carried out in accordance with the legal framework and with appropriate risk management measures in place. In the opinion of the BAAC, it is another government initiative to aid producers.
The authorities announced earlier this week that the electric pocket plan would be funded by three sources of funding, fueling the rumors about cash withdrawals and the BAAC’s statement.
They were 172.3 billion ringgit borrowed from the BAAC, 175 billion ringgit from the redistribution of the funds in the current fiscal time, and 152. 7 billion ringgit from the funds for the 2025 fiscal year.
The money would be used to pay 17.23 million producers for the loan, in accordance with Section 28 of the State Fiscal and Financial Disciplines Act.
In addition, government official Chai Watcharonke yesterday criticised the launch of a picture in which assistant director of the BAAC Paisarn Hongthong appeared to object to the loans plan due to concerns about the corporation’s cash.
He claimed that Mr. Paisarn and his team spoke with one another for clarity and that the meeting in the picture occurred about a week before the Wednesday news for the online wallet.
At that time, Mr Paisarn was asked about the 500 billion ringgit earmarked for the entire system, so his reply appeared to be about the company’s cash.