Yingluck Shinawatra, Thai prime minister obtained 17bn baht as loan from Government Savings Bank (GSB) to pay overdue rice farmers in view of the recent political tensions flared up under a rice-buying scheme declared last year.

The borrowed cash has been approved by state run Bank for Agriculture and Agricultural Cooperatives (BAAC) and should ease the pressure for a while as BAAC can only process 2 to 3 billion baht per week only.

Also, the arrangement can run into legal issues as the borrowing could be considered a bank loan rather than inter-bank lending which could violate Section 181 (4) of the constitution, which bars a caretaker administration from using state agencies’ resources to boost its electoral support.

The farmers were ideally to be paid by October 2013, but the government is trying to offload almost two million tonnes of rice by the end of next week, due falling international prices and months of political distress.

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