Bangkok:The Cabinet has approved an additional 10.5 billion baht from the central budget to support flood relief efforts. This decision includes measures to suspend loan repayments and provide financial aid to affected households.
According to Thai News Agency, Prime Minister Anutin Charnvirakul stated that the initial flood relief budget of 4.7 billion baht has been fully utilized. These funds were part of the remaining central government allocation from 2026, which have already been distributed to 600,000 households. Further assessments are being conducted to determine the number of additional households eligible for relief. The Budget Bureau has allocated another 10.5 billion baht for submission to the Cabinet meeting.
The Cabinet has also approved a comprehensive flood relief package comprising tax breaks and debt moratoriums. Seven state-owned financial institutions are instructed to suspend principal and interest payments and extend loan repayment periods for 3 to 6 months. The Government Housing Bank (GHB) has introduced debt restructuring measures for home repair loans, offering interest rates of 0-1.99% per year and repayment periods up to 40 years.
For small businesses, the Government Savings Bank is providing emergency loans with a maximum amount of 50,000 baht per person at a 0% interest rate for the first three months. Additionally, the Bank for Agriculture and Agricultural Cooperatives (BAAC) is offering agricultural loans up to 500,000 baht per borrower, with a 6-month interest-free period and a maximum loan term of 15 years.
Tax incentives include customs duty exemptions on machinery and equipment imported for repair purposes in disaster areas until March 31, 2027. Individuals can also deduct repair costs for properties and vehicles from their taxes, with specific limits based on incurred damages.
The government's disaster insurance program now covers floods, storms, and earthquakes, providing extensive coverage for group residential and accident insurance policies. The program's improvements include increased initial compensation for flood damage and further payments based on actual assessments, potentially reducing the central budget's compensation burden.