Thai Cabinet levels flood compensation at 9,000 baht

The Thai Cabinet has revised flood victim compensation to a uniform rate of 9,000 baht per household, replacing the previous variable range of 5,000 to 9,000 baht.

Prime Minister Paetongtarn Shinawatra announced the decision following a Cabinet meeting, citing the severity of the flood situation as the reason for the new compensation structure.

“The government decided that all affected households will each receive 9,000 baht (US$275) due to the severity of the flood situation.”

Reports from the frontline operation centre for disaster relief were reviewed, which led to the reassessment of the previously announced compensation amounts of 5,000 baht (US$153), 7,000 baht (US$215), and 9,000 baht (US$275).

Although the Cabinet has agreed in principle to the new single payment, further details are required for final approval, expected on October 8.

Discussions with Deputy Interior Minister Theerarat Samrejvanich and Deputy Defence Minister General Nattaphon Narkphanit, who had been inspecting flood-hit areas, confirmed that assistance has been provided to those in need.

Additionally, the Cabinet approved a proposal from the Ministry of Finance to revise the Government Savings Bank’s (GSB’s) low-interest loan (soft loan) programme.

Out of the total budget of 100 billion baht (US$3 billion), 50 billion baht (US$1.5 billion) will be allocated to provide low-interest funds to financial institutions for lending to small and medium-sized enterprises (SMEs) and freelancers affected by the floods.

To ease the financial burden on some SMEs, the GSB has suspended debt and waived interest for three months, from October to December 2024.

Pornchai Thirraveja, spokesman for the Finance Ministry, reported that the Cabinet also approved raising the top level of the GSB Boost Up soft loan programme and a loan guarantee proposal to help flood-affected SMEs from the Thai Credit Guarantee Corporation, reported Bangkok Post.

The GSB will offer loans to financial institutions at a 0.01% interest rate for two years, allowing these institutions to lend to flood-affected individuals at an interest rate not exceeding 3.5% per year for two years. Borrowers can receive up to 40 million baht (US$1.2 billion), with loan applications open until December 30.