Govt orders Flood Situation Command Centre to be set up

Ministers attending Tuesday’s cabinet meeting ordered the setting up of a Flood Situation Command Centre to handle the ongoing flood situation affecting many parts of Thailand.

The operations and management centre will follow a single command structure to manage water situations effectively. Phumtham Wechayachai, Deputy Prime Minister and Minister of Commerce will lead the initiative.

Chalermpol Pensoot, director of the Budget Bureau, said that the government currently has enough funds in the central emergency budget to handle the situation, adding that this would be sufficient until the fiscal year ends on September 30. After that, the government will have a new central emergency budget for fiscal 2025 to manage flood response and victim rehabilitation.

Pichai Chunhavajira, deputy finance minister, announced that specialised financial institutions have already implemented financial relief measures, including debt moratoriums, interest rate reductions, and low-interest loans to assist and alleviate the hardship of those affected by the flooding.

The Government Savings Bank (GSB) has implemented a debt moratorium for retail loan customers with loans up to 10 million baht, offering a three-month suspension of principal payments and a 50% reduction in interest rates. Additionally, the bank has introduced a low-interest emergency loan programme, offering maximum lending of 10,000 baht per borrower at an interest rate of 0.6% per month, with a repayment period of up to 15 months and a three-month payment deferral.

The Bank for Agriculture and Agricultural Cooperatives (BAAC) is putting in place a debt moratorium for customers with due or overdue debts (up to 3 months), and allowing debt restructuring by extending the repayment period for up to 20 years. If customers are unable to pay overdue interest in full, they may defer principal payments for up to three years, with all penalty interest waived.

The Government Housing Bank (GHB) has established a disaster relief programme for 2024 to alleviate the hardship of affected customers. This includes measures to reduce loan instalments and interest rates, provide current customers with a 50% reduction in loan instalments and a reduction in interest rates to 2% per year for six months.

The Small and Medium Enterprise Development Bank of Thailand (SME D Bank) is offering a debt moratorium on principal payments, adjusted according to the severity of the impact and the nature of each business.

The Export-Import Bank of Thailand (EXIM Bank) has implemented assistance measures for short-term loans, including extending promissory note terms for up to 180 days and temporarily increasing working capital lines by up to 20% of the original working capital, with a maximum increase of 2 million baht.

The Islamic Bank of Thailand (IBank) is also offering a debt moratorium on principal payments, requiring only profit payments for up to six months. The bank will allow for an extension of the moratorium period and waive all late charges until the account is restructured.

The Thai Credit Guarantee Corporation (TCG) has implemented relief measures for customers and debtors affected by the 2024 floods, including a moratorium on fee payments for TCG customers.

“The ministry believes these measures will provide comprehensive support to all target groups, including farmers, small entrepreneurs and small businesses in affected areas, helping to reduce costs, provide working capital, and facilitate business recovery, including the repair and renovation of buildings, factories, and machinery, " Pichai said.