PUBLISHED: 28 Aug 2024 at 08:33
The Finance Ministry has activated an extensive relief effort, mobilizing 14 financial measures aimed at supporting residents and businesses impacted by recent flooding events. The initiative addresses pressing challenges faced by communities and enterprises, offering crucial assistance in their recovery.
According to official statements, the measures, approved by ministry officials, will include critical support such as debt suspension for qualifying individuals. The Government Savings Bank is introducing a debt suspension program for retail customers with credit limits up to 10 million baht. Eligible customers will have the opportunity to defer principal payments while benefiting from a temporary 50% interest reduction for a three-month period.
The Bank for Agriculture and Agricultural Cooperatives is also stepping forward with a robust support package, allocating a total budget of 20 billion baht. This includes an emergency loan program available to borrowers at a minimum retail rate of 6.97% per year, permitting loans up to 50,000 baht with a repayment term of up to three years, and an initial six-month interest-free period.
Moreover, the Government Housing Bank is offering beneficial terms to existing customers by reducing monthly installments and interest rates significantly. Customers will receive a 50% reduction in monthly payments and a lowered interest rate of 2% per year for six months.
To enhance financial capability, the Small and Medium Enterprise Development Bank of Thailand will provide capital replenishment loans geared towards repairs, construction, or business rehabilitation, with maximum loan amounts reaching 5 million baht. These loans will feature a minimum interest rate of 1% per year, allowing for a repayment term of up to seven years.
In addition to these measures, the Export-Import Bank of Thailand aims to alleviate financial burdens by increasing short-term revolving capital by up to 20% for affected businesses. The Islamic Bank of Thailand is also supporting affected customers by offering a principal repayment suspension, allowing interest payments only for six months.
Furthermore, the Thai Credit Guarantee Corporation is providing a six-month suspension on guarantee fees, aimed at easing financial pressure on businesses.
Officials have expressed their commitment to closely monitor the evolving flood situation and are prepared to implement further measures to assist in a swift return to normalcy for the affected populations.
