Banks lend a helping hand to flood victims

Siridej Aungudomsin, executive vice president of Bangkok Bank, said the bank would assist affected customers by extending the debt-payment period and reducing their interest rate. The bank will also offer additional loans to entrepreneurs and retail customers affected by the floods. The loans will be to enable repairs of office buildings and residences, including working capital loans to help boost the liquidity of businesses.

Krung Thai Bank (KTB) will give additional loans to SMEs and retail customers with lower rates to boost their liquidity.

Apisak Tantivorawong, president of KTB, said that flood-affected customers could ask for a freeze in repayment of principal amounts for six months and some clients who want additional loans can use the previous guarantee.

KTB will help mortgage customers by providing additional loans to customers at a special interest rate of MRR-1.75 per cent in the first year and in the second year the rate will be 0.50 per cent.

For SMEs, KTB will hold business matching to help construction-material business operators, and also grant loans to local administrative agencies to repair the flood-affected areas.

Thanachart Bank has frozen hire-purchase debts for a maximum of 90 days to help SMEs and retail customers. The bank has extended instalment payments by 12 months.

Chief executive officer and president Somjate Moosirilert said the affected customers will be waived fees. Credit card and personal loan clients can ask the bank to delay revolving payments. Home-loan customers will be waived repayment of the principal amount by 12 months, while paying only the interest. They can also seek additional home loans of a maximum of Bt1 million each.

SME entrepreneurs can freeze debts by not paying the principal amount for 12 months. Entrepreneurs can also seek additional loans to boost liquidity.

Siam Commercial Bank (SCB) will assist mortgage customers and small enterprises by freezing repayment of the principal amount and interest payment by a maximum of six months. The bank will give extra loans to customers who have to repair their residences. The loan amount will be up to 120 per cent of the asset price evaluation.

SCB will also waive repayments of principal and interest amounts for auto loans, credit cards and personal loans for three months.

SCB will also freeze repayment of principal amounts, extend the period of debt payment and reduce interest rates for SME customers. It will also provide overdraft or working capital of no more than 20 per cent of total working capital credits or a maximum of Bt10 million.

Tourism

Piyaman Tejabaibun, president of the Tourism Council of Thailand (TCT) has urged Thai embassies overseas to speak to foreign governments and tourists about the flood situation in the country.

TCT expects the tourism business to suffer a severe impact during the high season, which will be from November to March, if the government is unable to solve the problem.

"Tourists may shift to other destinations if they are not comfortable about travelling in Thailand," she said.

TCT also urged the government to help operators affected by the floods with long-term soft loans after the floods. It has also asked the private sector and Tourism Authority of Thailand (TAT) to create stimulus or short-term packages to restore tourism.

TCT says that domestic tourism in many provinces was hit, especially in the lower Northern region and in the Central region. However, unaffected regions like the Northeast and the North are gaining more tourists.

The Royal Flora Expo, which is scheduled to start in Chiang Mai in November, is expected to draw a lot of local people. Hotels in Chiang Mai are receiving higher bookings and some hotels already have full advance reservations. Airlines are preparing more flights for Chiang Mai.

The Northeast region, which has been affected by a short period of flooding, is returning to normal and is ready to celebrate big religious events.

Due to heavy flooding in the upper part of the country, tourism in the South is likely to get a lot more business, especially Phuket and Samui.

TCT said international arrivals to the South increased by 20-30 per cent, with most of them from Malaysia.