The cabinet has approved a new compensation policy for flood victims, setting a flat rate of 9,000 baht per household in response to the severe flooding affecting the region. This decision, announced by Prime Minister Paetongtarn Shinawatra on October 1, 2024, comes after a cabinet meeting that assessed the extent of the disaster and its impact on local communities.
Prime Minister Shinawatra explained that the cabinet reviewed the financial relief measures previously proposed, which ranged from 5,000 to 9,000 baht, and opted for a single, uniform payment to streamline the assistance process. The decision was made in light of reports from the frontline operation center tasked with disaster relief for victims of floods, storms, and landslides.
While the cabinet has reached a consensus on this new compensation structure, further details will be finalized and presented for approval on October 8, 2024. The Prime Minister, after discussions with Deputy Interior Minister Theerarat Samrejvanich and Deputy Defence Minister Gen Nattaphon Narkphanit, indicated that assistance has already been mobilized for those in dire need.
Additionally, the cabinet has sanctioned a proposal from the Ministry of Finance to revise the low-interest loan program offered by the Government Savings Bank (GSB), allocating 50 billion baht out of a total budget of 100 billion baht. This initiative aims to provide affordable financial support to small and medium-sized enterprises (SMEs) and freelancers who have been impacted by the flooding.
In a bid to alleviate the financial strain on affected businesses, the GSB has also announced a temporary suspension of debt repayments and the waiving of interest for three months, from October to December 2024, for specific SMEs. According to Pornchai Thirraveja, the spokesman for the Finance Ministry, the cabinet approved an increase in the limits for the GSB Boost Up soft loan program, along with a loan guarantee proposal from the Thai Credit Guarantee Corporation (TCG). Under the revised soft loan scheme, the GSB will provide loans to financial institutions at a nominal interest rate of 0.01% for two years, enabling them to lend to flood-affected borrowers at a maximum interest rate of 3.5% per year for the same period. Eligible borrowers can receive loans of up to 40 million baht, with applications accepted until December 30, 2024.
