BAAC to offer express credit

       The Bank for Agriculture and Agricultural Co-operatives (BAAC) is preparing a fasttrack credit programme worth 22 billion baht as part its new lending plan.
       The express credit programme will be open to all categories of customers,ranging from farmers to entrepreneurs,agricultural co-operatives, community businesses and the general population,said president Ennoo Suesuwan.
       Under the new programme, the bank pledged to complete its lending approval in five days for existing clients and 15 days for new ones. The bank's lending approval normally takes about a month.
       Mr Ennoo was speaking at a national meeting on Sustainable Trade and Development of Food, Energy and the Environment organised at the Queen Sirikit National Convention Center by the bank and Ramathibodi Hospital.
       The short-term lending plan with a minimum lending rate of about 4.75%and a minimum retail rate of 6.75% will run from Sept 1 until Dec 31.
       The BAAC has increased its lending target for its fiscal year by 45% to reflect its goal of supporting economic recovery,said Mr Ennoo.
       The state-owned bank now aims to lend 470 billion baht in this fiscal year,from April 1 to March 31, up from 323 billion in its original plan.
       Extra loans will include 125 billion baht for the government's new price insurance or options programme for maize, tapioca and rice, which replaces the traditional price-pledging programme. The BAAC aims to buy 23.5 million tonnes of rice from the 2009-10 main harvest,29.7 million tonnes of tapioca and 4.25 million tonnes of maize.
       The bank has also set aside about 43.5 billion baht -18.5 billion for maize and tapioca and 25 billion for rice - to compensate farmers if prices for staple crops fall below their reference or insurance prices.
       The BAAC is prepared to provide 30 billion baht in loans this year to farmers who grow fuel plants that can produce alternative energy, said Mr Ennoo.
       By the end of July 2009, the BAAC had extended 8.62 billion baht in loans to clients, said Mr Ennoo. The bank provided 34.56 billion baht in loans to farmers last year, exceeding the set target of 27 billion, he said.
       In 2009, the BAAC has also set up a 13-billion-baht lending portfolio to promote safe and organic farm products.
       The BAAC also has a policy of supporting the development of safe food and biofuel by providing loans for farmers to upgrade their production to international standards and to create business opportunities, said Mr Ennoo.