In an urgent press conference Tuesday morning, Vorapak Tanyawong, president of Krungthai Bank (KTB), flatly denied the rumour that the bank would lend billions of baht to the rice-pledging scheme.
He also told reporters that the bank would not involve in the lending, given regulatory uncertainties involving the scheme. Loans to such scheme would result into credit risks to the bank's stakeholders, he said.
"Lending is science... The board cannot pressure us to do what it will lead to risk to the bank," he said.
He said that the bank was not approached to join the second round of loan bid.
He also vowed that under his reign, KTB would no longer be a political tool.
Personally, he agreed that farmers should be paid quickly but he urged the government to find other solutions which would not pass the burden to banks.
While meeting with the bank's employees, Vorapak also assured them that the bank would maintain operating transparency, to guard all stakeholders.
The bank's labour union today submitted a letter to KTB's chairman Worawit Jampirat, expressing the union's concern on the situation.
In the letter, they demanded the board of directors not to succumb to the government's demand concerning loan extension. The board should also have a backup plan to deal with negative impacts incurred by the reports.
The union also threatened serious measures if the board failed to safeguard the bank's interests.