Aid efforts aim to ease the burden
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.
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