Bangkok: Assistance for SME debtors affected by flooding in the South includes a 4-month automatic interest reduction and accelerated liquidity through the “Easy Money, Recover the South, Help with Disasters” loan with 0% interest for 6 months.
According to Thai News Agency, the Department of Industrial Promotion (DIPROM) is enacting an urgent measure in response to the policy of Industry Minister Thanakorn Wangboonkhongchana. The “Relief, Recovery, and Assistance to Industrial Entrepreneurs” initiative, also known as the “Easy Money, Southern Recovery, Disaster Relief” loan, is designed to alleviate the financial burden on industrial entrepreneurs impacted by floods in the southern region. This measure includes a revolving fund for promoting family industrial careers and Thai handicrafts, or DIPROM Pay. Good debtors will benefit from an automatic debt repayment suspension for both principal and interest for up to four months, along with reduced monthly installments and an extended repayment period of up to two years. New debtors are eligible to borrow up to 500,000 baht each, with no interest for the first six months and a three-month automatic debt repayment suspension.
Ms. Natthaya Netyasupa, Director-General of the Department of Industrial Promotion, emphasized that the flooding in nine southern provinces-Surat Thani, Nakhon Si Thammarat, Trang, Phatthalung, Satun, Songkhla, Pattani, Yala, and Narathiwat-since November 19, 2015, has resulted in significant hardship for residents, including industrial operators and small business owners. Hat Yai District in Songkhla Province has been classified as a “very severe” flood zone. The Ministry of Industry, under Mr. Thanakorn Wangboonkhongchana, is committed to providing swift assistance to SMEs and community enterprises. As Chairwoman of the Executive Committee of the Revolving Fund for the Promotion of Family Industrial Careers and Thai Handicrafts, Ms. Netyasupa has issued urgent measures to mitigate the impact on industrial entrepreneurs, with an initial 50 million baht set aside for affected debtors. This includes deferrals on repayment and reduced interest rates, while new customers can apply for loans to rehabilitate their
businesses.
Entrepreneurs seeking assistance must be located in flood-affected areas and should either be good debtors of the revolving fund, previous debtors, or have a history of late payments. Benefits for those who repay within one year include a 4-month automatic debt repayment suspension, a 50% reduction in monthly installments for four months, and an extended repayment period of up to two years. Additionally, affected entrepreneurs can apply for the “Easy Money, Southern Recovery, Disaster Relief” loan, with amounts up to 500,000 baht per person/business, a maximum repayment period of two years, and a special interest rate structure.
DIPROM is also expediting relief efforts through the “Industrial Center for Disaster Relief” initiative, which collaborates with private sector agencies to provide supplies and essential goods to disaster victims. Entrepreneurs can submit applications in person or via mail to the Capital Management Group at the Department of Industrial Promotion in Bangkok or at local DIPROM Centers.