By Nathan John Dela Torre Carlos and Pitchaya Wongchitt
Mae Sai | Thai businesses affected by floods will be offered low-cost loans totalling 50 billion Thai baht under a proposal by the government that will include longer periods to repay debt, reductions in interest rates and installments, fast loans, and low interest loans.
Announcing the package in Mae Sai yesterday Prime Minister Paetongtarn Shinawatra promised speedy relief for various industries in northern Thailand, just as floods in the south of the country displaced thousands more people.
“Today the flood happened in the south so one of the deputy prime ministers with four officials have gone there and we also have the policy to help them like we did here because the flood makes many households go through hard times,” she said.
“What is important is its effects on the country’s economy.”
In October 740,000 people were affected by extensive flooding across northern Thailand, killing more than a dozen people, displacing thousands and wrecking shops and spoiling inventory.
Appearing alongside the Minister of Finance, Pichai Chunhavajira, the Permanent Secretary of Finance, Lavaron Sangsnit, and the Vice Governor of Chiang Rai, Prasert Jitpleeheep, two months after the Mae Sai floods killed 16 people in the town, the arrival of the prime minister was met with a mixed reception from locals, some who have claimed not to have received the support promised on October 8.
The delegation announced a partnership with eight state banks for loan packages mainly to help farmers, entrepreneurs and SMEs (small and medium enterprises), that will come on top of the 94 billion THB already set aside for flood relief.
The banks involved include Krungthai Bank, Government Saving Bank, Bank of Agriculture & Agricultural Cooperatives, Government Housing Bank, Export-Import Bank of Thailand, SCB Bank, Islamic Bank of Thailand and Thai Credit Guarantee Cooperation.
“They (the Ministry of Finance and eight banks) [will] introduce a policy to help with the debt moratorium, interest reduction, reducing installments, fast loans, and low interest loans to help ease the burden of those affected by the floods,” said Sangsnit, “… moreover between the Ministry of Finance, eight banks and the government they have reached an agreement in supporting the financial liquidity for flood victims by arranging a credit limit for borrowing to the amount of 50 billion THB with low-interest loans which the ministry approved on the 1st of October this year.”
This disaster, I see it is horrible and also an opportunity.
The appearance by the prime minister was designed to highlight improvements in the city of Mae Sai, on the Thai-Myanmar border, since the floods, and help revive the economy of Thailand’s northern region. The town is engaged in an ongoing clean-up operation with many houses and businesses still under feet of mud.
Addressing the press Chunhavajira said: “In the upper part of south-east Thailand I’ve heard that on the south as well it is a disaster.
“This disaster, I see it is horrible and also an opportunity. I mean the opportunity is when the disaster came; [the] government saw this as the chance to get closer with the people and can now know about the problems.
“As you can see, we have done many things to help as the Permanent Secretary for Finance has mentioned.
“State banks are also doing their best to help … we help both those who are flood victims and also those who are not because we see that [the] economy in Thailand is in the growing stage and this can grow more at the level that we used to be.”
Shinawatra said the new policy’s focus on relieving debt burden would mean flood victims would not damage their credit to purchase the loan, creating financial liquidity.
“Lastly, climate change, global warming and other natural disasters we will try to use technology to predict reducing damage as much as we can,” she added. “The government is working on this.
“When I visit other countries to see their technology I’m learning, discussing with them and trying to bring help to our country. Next year I have a plan to reduce disaster. This is the highest intent.”
The prime minister is also expected to visit residents in the south this Sunday.
Main image by Sarah Kang.
UTS journalism students travelled to Thailand as part of The Foreign Correspondent Study Tour, a University of Technology Sydney programme supported by the Department of Foreign Affairs and Trade’s New Colombo Plan, and working with Chiang Mai University strategic communications students in association with Chiang Mai University.
