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| Bank of Agriculture and Agricultural Cooperatives to Issue More Savings Certificates | |||||||||||
| UPDATE : 9 February 2010 | |||||||||||
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In an attempt to raise capital to provide credit this year, the Bank of Agriculture and Agricultural Cooperatives' president revealed his bank will issue 100 million units of the third and fourth lots of savings certificates, worth a combined 10 billion baht. BAAC president, Luck Wajananawat said the bank's plan to mobilize resources by issuing savings certificates will encourage Thai farmers to save more. The plan is considered part of the government's informal debt refinancing program and is aimed at improving the living standards of Thai farmers. He added that farmers' demand for financial resources will rise, especially during the upcoming rainy season. Luck said his bank aims to provide 350 billion baht in credit, an increase of 10 percent from last year. This goal has been set without taking into consideration policies that guarantee farmers' income. Last year, BAAC provided 450 billion baht in loans and payments to farmers under the government income guarantee scheme. As for measures to guarantee farmers' income, Luck said about three million farming households have benefited from them and his bank has advanced the government 30 billion baht in payments, made to participating farmers. The government will repay his bank and 1.98 percent in opportunity costs by the third week of this month, after the budget for the Strong Thailand economic stimulus initiative is allotted. The third and fourth lots of the special savings certificates will yield a 0.33 percent annual interest rate. Each savings unit costs 100 baht and has a three-year maturity. The bank will pay certificate holders 1 baht per saving unit and they will also be entitled to a chance to win 36 lucky draws from the government lottery, from April 16th this year until March 16th, 2013. |
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