The Bank of Thailand (‘BOT’) has announced financial relief measures through low interest rates to those affected by the floods. The significant conditions and criteria are as follows:
Keywords: Thailand, Legal, Bank of Thailand, Financial Relief Measures, Floods, Ministry of Finance
1) The total financial support amount is Baht 300bn;
2) The relief will be through commercial banks and the six government financial institutions;
3) Target groups:
3.1) The individual or juristic person who operates SMEs.
3.2) Individuals who resided, worked or operated business in the flooded areas.
4) The interest rate which the financial institutions will charge to both SMEs and individuals is 3% per annum;
5) The amount to be granted will not exceed Baht 30m per SME and Baht 1m per individual; and
6) The financial relief measures will end on 31 December 2018. Therefore loans outstanding after this date will be charged interest at the market rate.
It is understood that the lenders shall have the authority to consider whether to grant the loan to the individual or SME on a case by case basis.
The length of the loan, terms and conditions including personal guarantees or whether an asset is pledged as collateral are to be negotiated at the discretion of the lender.
Definition: “Small and Medium Enterprise Entrepreneurs” are the qualifying entrepreneurs that fall into each of the following business categories and meet the following maximum limits on the number of employees or value of fixed assets:
Note: The “flooding area” will follow the definition announced by the Ministry of Finance.
For more information: