File photo: flooding in Ayutthaya
The cabinet approved a package to help flood victims today, both individuals and businesses in 50 provinces, which includes tax exemptions, soft loans, debt moratoria, interest rate cuts and loan guarantees.
Government spokesman Jirayu Huangsap said that the rehabilitation package is on top of the 9,000 baht one-time financial help provided by the government to about 67,000 households impacted by flooding this year.
The aid package includes:
- Corporate and personal income tax exemptions amounting to the compensation received from the government.
- Exemption of corporate income tax for legal entities which have received flood relief assistance from the government.
- Soft loans of up to 40 million baht each for flood-devastated SMEs. The loans are repayable within two years at an interest rate not exceeding 3.5% per annum.
- The Thai Credit Guarantee Corp will guarantee loans, ranging from 10,000 baht to two million baht for not more than ten years, with a service charge of 1.25% of the amount borrowed.
- Old debtors of the Government Savings Bank will be given a six-month debt moratorium, interest free for debts not exceeding 10 million baht. For those who hold credit cards, their monthly repayments will be cut to just 3% of the outstanding balance for three instalments.
- Debtors of the Bank of Agriculture and Agricultural Cooperatives, who are regarded as good customers or who have missed no more than three instalments, can negotiate for a repayment extension of up to 20 years, with a three-year grace period and interest free for three years.
- 50,000 baht emergency credit to improve liquidity and for the purchase of necessary consumer products. The credit is repayable in three years and is interest free for the first six months. After that, the interest rate will be the Minimum Retail Rate (MRR).
- 500,000 baht credit for house maintenance or repairs to farm machinery. Credit is payable in 15 years, with MRR at 2%.
