Nine state banks roll out flood relief measures
Nine state-owned banks are rolling out flood relief measures, which will cover existing and new clients who have been affected by the severed floods.
Announced today at the press conference, which was participated by Finance Permanent Secretary Areepong Bhoocha-oom, such measures include debt moratorium, interest rate cuts and new loans for repairing works.
This is in addition to a tax measure: recipients' financial assistance will be waived from income taxes, while taxpayers can deduct their taxable income by 1.5 times of actual donations given to units registered with the Revenue Department during Sept 1-Dec 31, 2011. The Treasury Department will also waive rentals for a year (partially-damaged properties) and for two years (for entirely-damaged properties).
Participating in the flood relief scheme are Krung Thai Bank, Bank for Agriculture and Agricultural Cooperatives (BAAC), Government Savings Bank, Government Housing Bank, Small and Medium Enterprise Development Bank of Thailand (SME Bank), Islamic Bank of Thailand, Export-Import Bank of Thailand, Small Business Credit Guarantee Corporation, and Secondary Mortgage Corporation.
BAAC will waive all debt obligations in case of loss of life. It offers 3-year debt rescheduling and 3-year moratorium on interest during 2011-2013. GS Bank extends emergency loans upto Bt300,000 each, at the interest rate of 3.25 per cent in the first two years; as well as house repair loans worth uptoBt300,000 each. GH Bank imposes 2 per cent rate on new loans to existing clients for five years.
SME Bank offers repair or working capital loans upto Bt1 million for six years, with 2-year grace period. The interest rate in the next years is 8 per cent (2 per cent to be absorbed by the government).
