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SE Asia
 

Thai Government Savings Bank calls back loan to farm bank managing rice-buying

Published on Feb 18, 2014 4:46 PM
 

BANGKOK (REUTERS) - Thailand's Government Savings Bank (GSB) said on Tuesday it was calling back a loan made to a state farm bank that had prompted an unusually high volume of withdrawals by GSB depositors this week.

The farm bank manages a rice-buying scheme that has run into difficulties and some depositors reportedly withdrew their money from the GSB because they did not want it used to help the government fund the controversial programme.

GSB Chairman Choojira Kongkaeow told reporters after a board meeting the bank had decided to call back the 5 billion baht (S$195,3 million) interbank loan and had also cancelled a credit line for 20 billion baht to the bank.

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