The Thai Cabinet on its recent meeting has approved the Baht 250 billion principal loans to flood-affected businesses: industrial companies, small medium enterprises (SMEs) and independent business operators or self-employed workers.

Out of this Baht 250 billion, approximately Baht 210 billion will be provided to SMEs while an estimated Baht 15 billion are for those flood-hit industrial parks and the rest will be provided to independent business operators and self-employed workers.

Under this scheme, the loan provided to borrower is subject to a 3% annual interest rate with repayment terms of 3 years. Baht 120 billion out of Baht 250 billion will be provided by commercial and private banks and Small Business Credit Guarantee Cooperation will guarantee the 30% of the credit for each borrower. Approximately Baht 50 billion will come from the Japan’s Bank for International Cooperation and an estimated Baht 40 billion will be from matching funds between the Government Savings Bank and commercial banks. The rest of the amount will be distributed by the Government Savings Bank.