Steps prepared to ease conflict's economic impact along Thai-Cambodian border
According to Finance Minister Pichai Chunhavajira, the ongoing unrest stemming from clashes between security forces along the Thai–Cambodian border has affected the safety of local residents and expanded its impact to the economy and social fabric of surrounding communities.
The incidents have caused property damage and severely disrupted the livelihoods, occupations, and businesses of the people in the area. In response, the Finance Ministry has directed state financial institutions to assist through various measures aimed at alleviating the impact.
For example, the Government Savings Bank has been tasked with offering a suspension on principal repayments and partial interest payments, along with low-interest loans to small entrepreneurs at a monthly interest rate of just 0.75%, with a repayment term of 60 months.
For SMEs, loans of up to 5 million baht per borrower are available, with a first-year interest rate of the minimum loan rate (MLR) minus 2.65%, followed by the MLR for the remainder of the 7-year loan term.
Meanwhile, the Bank for Agriculture and Agricultural Cooperatives will provide emergency loans for consumer expenses, up to 50,000 baht per borrower, with an interest rate at the minimum retail rate (MRR) and a loan term of up to three years. The first six months are interest-free.
According to Mr Pichai, the Small and Medium Enterprise Development Bank of Thailand would offer a fixed interest rate of 3% a year for three years, with a maximum loan term of 10 years.
Meanwhile, the Export-Import Bank of Thailand will extend debt repayment periods up to 365 days, reduce interest rates by up to 20% of the original rate, and provide a temporary credit line increase of up to 30% of the original limit for one year, with a starting interest rate of 2.99% a year.
Additionally, the Comptroller General's Department has increased the emergency spending authority for provincial governors along the Cambodian border to 100 million baht in four provinces, namely Surin, Sri Sa Ket, Buri Ram and Ubon Ratchathani, to support relief efforts for people affected by border-related issues.
Governors are usually authorised to spend no more than 20 million baht under emergency provisions.
In a separate development, Suwannee Jetsadhasak, assistant governor of the Bank of Thailand's financial institutions policy group, said the central bank is closely monitoring how financial institutions are supporting both their employees and customers during the ongoing situation.
Thai financial institutions with branches in Cambodia have gradually repatriated their Thai staff, with all expected to return to Thailand as of yesterday. Meanwhile, some bank branches in Thai provinces along the border, specifically Surin, Sri Saket, Ubon Ratchathani, Buri Ram, Sa Kaeo, Trat and Chanthaburi, have been temporarily closed.
On Thursday, the Thai Bankers' Association announced that its member banks are temporarily closing their branches along the Thai–Cambodian border to ensure the safety of customers and the public, citing unrest in the area that has resulted in loss of life, property damage, and disruption to local livelihoods.
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3 days ago
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Aid efforts aim to ease the burden
The Finance Ministry has issued measures to alleviate the economic impact on communities along the Thai-Cambodian border by implementing debt suspensions, interest rate reductions, and low-interest loan measures for affected individuals. According to Finance Minister Pichai Chunhavajira, the unrest stemming from clashes between security forces along the Thai-Cambodian border has affected the safety of local residents and disturbed the economy and social fabric of communities. The incidents have caused property damage and disrupted the livelihoods, occupations, and businesses of the people in the area, he said. In response, the ministry directed state financial institutions to offer various measures to alleviate the impact. For example, Government Savings Bank is to offer a suspension on principal repayments and partial interest payments, along with low-interest loans to small and medium-sized enterprises (SMEs) at a monthly interest rate of 0.75%, with a repayment term of 60 months. For SMEs, loans of up to 5 million baht per borrower are available, with a first-year interest rate matching the minimum loan rate (MLR) minus 2.65%, followed by the MLR for the remainder of the seven-year loan term. Meanwhile, the Bank for Agriculture and Agricultural Cooperatives plans to provide emergency loans for consumer expenses, up to 50,000 baht per borrower at the minimum retail rate for a loan term of up to three years. The first six months are interest-free. According to Mr Pichai, the SME Development Bank of Thailand is to offer a fixed interest rate of 3% a year for three years, with a maximum loan term of 10 years. The Export-Import Bank of Thailand plans to extend debt repayment periods up to 365 days, reduce interest rates by up to 20% of the original rate, and provide a temporary credit line increase of up to 30% of the original limit for one year, with a starting interest rate of 2.99% a year. In addition, the Comptroller-General's Department increased the emergency spending authority for provincial governors along the Cambodian border to 100 million baht in four provinces -- Surin, Si Sa Ket, Buri Ram and Ubon Ratchathani -- to support relief efforts for people affected by border-related issues. Governors are usually authorised to spend no more than 20 million baht under emergency provisions. In a separate development, Suwannee Jatsadasak, assistant governor of the Bank of Thailand's financial institutions policy group, said the central bank is monitoring how financial institutions are supporting both their employees and customers during the disputes. Thai financial institutions with branches in Cambodia have gradually repatriated their Thai staff, with all expected to return to Thailand as of yesterday. Some bank branches in Thai border provinces, specifically Surin, Si Sa Ket, Ubon Ratchathani, Buri Ram, Sa Kaeo, Trat and Chanthaburi, have been temporarily closed. On Thursday, the Thai Bankers' Association announced its member banks are temporarily closing their branches along the Thai-Cambodian border to ensure the safety of customers and the public, citing unrest in the area that has resulted in loss of life, property damage, and disruption to local livelihoods.
