Thai cabinet approves financial aid

Thailand's cabinet has approved a financial package to help out manufacturers, small and medium enterprises (SMEs) and independent business operators who have been affected by the floods, according to a report by Thailand Business News. The loan package approved amounted to $10.55 billion (325 billion baht).

The loans are supposed to help the businesses get back on their feet, said Industry Minister Wannarat Charnnukul.

Of the $10.55 billion loan portfolio, the cabinet will allocate $2.11 billion (65 billion baht) as a form of credit line for large businesses and foreign investors to use in industrial areas and constructing dykes to protect these areas. A total credit of $5.52 billion (170 billion baht), with low interest rates, will be for SMEs. A loan of $2.60 billion (80 billion baht) from the Government Savings Bank, the Government Housing Bank and the Bank for Agriculture and Agriculture Cooperatives will extended to micro-business operators and farmers. Another $324.47 million (10 billion baht) in credit will be offered by the Social Security Program for entrepreneurs to repair their workplaces.

Thai floods cause chain reaction in market supply The floods in Thailand are causing concern in the industry supply chain. Read more about the domino effect the floods have brought about here.

Other measures are implemented to extend promotional privileges for investors whose investments have been affected by the floods. The government will also offer compensation to flood victims for to rehabilitate their damaged houses and properties.

The financial package was proposed by the Office of the National Economic and Social Development Board, which stated that the flooding impact on the people and businesses was very serious. The government needs to prepare urgent measures to ease the hardships of flood victims and rehabilitate affected businesses.

The cabinet assigned the Ministry of Industry, the Ministry of Labor, and the Ministry of Finance to prepare information for the registration of flood-hit people and businesses, so that financial institutions could offer special credit for them.