Friday, 21 February 2014

Recently, there was some stress financial situation in Thailand due to the politics.

On 17 February 2014, since the Government Saving Bank (GSB) decided to let the Bank for Agriculture and Agricultural Cooperatives (BACC) that manages the government's rice programme and runs out of money to pay farmers  borrow money 5 billion baht ($155 million), some of Thai people tended to withdraw money approximately 30 billion baht ($1 billion). The reason is that they were afraid that this loan may be contributed to the loss-ridden rice-pledging scheme.

A 30-billion-baht withdrawal is unusually high, compared to 7-billion-baht in normal day. All GSB branches had to order to double the cash reserves to meet the high demand.
Overall, there was 44.8 billion baht ($1.5 billion) was deposited meanwhile 105.7 billion baht ($3.52 billion) was withdrawn between 17 Feb - 20 Feb 2014. Following this, Woravit Chailimpamontri, the GSV's president, resigned  to take responsibility for the phenomenon.

However, GSB has already suspended and recalled money in order to decrease the violence of this situations.


People tended to withdraw money.
GSB union wore black suits to protest this loan.

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