BANGKOK, Thailand – The Cabinet, under the leadership of Prime Minister Paetongtarn Shinawatra, has revised its compensation scheme for flood victims, setting a flat payment of 9,000 baht per household, replacing the previous sliding scale of 5,000 to 9,000 baht. The new uniform rate has been agreed in principle, with final approval expected on October 8.
The decision follows consultations involving the Prime Minister, Deputy Interior Minister Theerarat Samrejvanich, and Deputy Defense Minister Gen. Nattaphon Narkphanit, who have been evaluating flood-affected areas. Meanwhile, the Ministry of Finance has outlined additional financial support measures for small and medium-sized enterprises (SMEs) and freelancers impacted by the floods.
Under the revised scheme, the Government Savings Bank (GSB) will allocate 50 billion baht from its low-interest loan budget to provide funds to financial institutions, allowing them to offer loans to SMEs and freelancers at an interest rate capped at 3.5% for two years. The GSB will lend to financial institutions at 0.01% interest for the same period, and borrowers can apply for loans up to 40 million baht until December 30.
The GSB will also suspend debt repayments and waive interest for three months, from October to December 2024, for select SMEs. Additionally, the Finance Ministry has increased the limit for the “GSB Boost Up” soft loan program and introduced a loan guarantee scheme through the Thai Credit Guarantee Corporation to support businesses affected by the floods. (NNT)
