Korn promises to pull farmers out

He said the government was already looking for the funds and expected the Cabinet to endorse the plan. He added that they by September they should know how much funding for the plan could be acquired.

The minister also said he would propose to the Cabinet tomorrow that Bt600 million from the recovery and development fund for farmers be spent on purchasing poor farmers' debts.

Korn made these promises after meeting with representatives of indebted farmers who gathered outside Government House yesterday asking for help to alleviate their financial woes.

Following talks with the minister and relevant authorities, Watcharapong Kongyuen, a leader of the Network of Thai Farmers, said the group was "satisfied to an extent". However, he said, the group would not be calling off their demonstration immediately but would instead gather at the nearby Royal Plaza to hear the Cabinet's decision on the matter.

Charin Duangdara, an adviser to the group, said that thousands of farmers were unable to pay back the loans they took to invest on their farms and more than a 1,000 were unable to buy back their collaterallised assets that were seized by the banks.

"We want the government to help by purchasing the debts and extending the repayment period. The farmers don't want to escape their repayment obligations, we just need breathing space," he said.

Earlier in the day, the protesters were engaged in a brief confrontation with police guarding Government House when they tried to push their way into the compound.