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Economy June 13, 2014 00:00

By The Nation

3 banks win bid for bridge loan to govt

Three banks won the second round of bidding to offer Bt40 billion in bridge loans to the government, increasing the likelihood that rice farmers will get all their overdue payments soon.
The Government Savings Bank will extend Bt20 billion, Bank of Ayudhya Bt10 billion and Tokyo Mitsubishi UFJ Bt10 billion.
Chularat Suteethorn, director-general of the Public Debt Management Office, said 11 government and commercial banks oversubscribed to the tune of Bt114 billion.
In the first round, the GSB came up with Bt50 billion at the lowest interest rate. 
The PDMO’s term-loan auction is aimed at paying off debts owed to farmers under the rice-pledging scheme. Proceeds of the latest round will be transferred to the Bank for Agriculture and Agricultural Cooperatives (BAAC) to pass on to the farmers. 
Bt175 bn to 1.5m farmers 
The BAAC has already paid Bt175 billion to 1.5 million farmers in the rice-pledging scheme.
For the 2013-14 season, 1.69 million farmers pledged 11.81 million tonnes of rice worth Bt195.45 billion to the government.
Cut in diesel price today 
The Energy Policy Administration Committee yesterday agreed to lower diesel retail price by 14 satang per litre, effective today.
It also approved a cut in the contribution from diesel sales to the Oil Fund by 56 satang per litre, bringing the total contribution to 81 satang per litre. This will add Bt33.60 million per day to the fund. However, the fund still faces a deficit of Bt7.5 billion.
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