The meeting of the cabinet today approved a plan to provide major
financial assistance to flood affected manufacturers and smaller
enterprises, as commercial banks reported they have now closed 283
branches in flood-hit areas.
The cabinet agreed in principle to make provision for 250 billion baht in loans to help flooded manufacturers, small and medium enterprises and independent business operators get back on their feet, Industry Minister Wannarat Charnnukul said on Tuesday.
Mr Wannarat said the cabinet assigned Commerce Minister Kittiratt Na-Ranong, chairman of the economic rehabilitation panel, and the Finance Ministry to jointly consider details of the proposal’s implementation.
Of the total lending portfolio, 210 billion baht will be loans for the SMEs, 15 billion baht for manufacturers in the flooded industrial estates and the remaining 25 billion for independent businesses, he said.
The funds for this lending scheme would come from;
1) 40 billion baht loan from the matching fund of the Government Savings Bank and other commercial banks.
2) 120 billion baht in loans acquired from commercial banks.
3) 50 billion baht loan from the Japan Bank for International Cooperation
4) The remaining 40 billion baht for loans for SMES and other business operators will be provided by the Government Savings Bank.
Atchaka Sibunruang, secretary general of the Board of Investment, said the BoI would offer additional investment privileges for the flood affected industrial plants.
Tax exemption for a period of eight years will also be offered to foreign investors to prevent them moving new projects to other countries, said Mrs Atchaka.
Earlier this morning, Mr Wannarat said that in order to help rehabilitate the flooded factories the government will offer tax exemption for imported machinery and raw materials.
Additional investment privileges under the framework of the Board of Investment will also be offered to flood affected manufacturers, he added.
The minister was confident that the Lat Krabang industrial estate will not be inundated because the army has joined forces with manufacturers in the effort to protect factories in the area.
Meanwhile, the flooding has forced banks and other financial institution to close branches in flood-hit areas and major retailers said they have closed some outlets because they cannot restock emptied shelves. Manufacturers could not deliver the goods they needed because of the flood.
Thirteen commercial banks and a financial firm reported that they had temporary closed a total of 283 branches in flooded provinces, the Bank of Thailand reported on Tuesday.
Of the total, 132 outlets are in Pathum Thani, 63 in Nonthaburi, 46 in Ayutthaya, 21 in Bangkok, 18 in Nakhon Sawan, and one each in Chai Nat, Lopburi and Uthai Thani.
About 270 7-Eleven convenience stores have been closed throughout the country because they cannot get supplies to replenish their stocks, the franchise operator CP All Plc said on Tuesday.
The announcement said that the flooding had caused people to panic and rush to buy necessities. There are 6,200 branches throughout the country.
Other retailers said suspension of operations by some manufacturers in flood-hit areas also contributed to the shortages of food products and other consumer goods.
Defence Minister Yutthasak Sasiprapa said the armed forces are ready to help distribute consumer goods from factories unable to transport their products to retail outlets in Bangkok.
“Big C super centre was the first retailer to ask for such support,” Gen Yutthasak said.
Energy Minister Pichai Naripthapan said there will continue to be sufficient supplies of fuel oil, natural gas and electricity throughout the country.
Mr Pichai admitted delivery of natural gas and oil to the North and Northeast may be slow as normal transport routes have been flooded.
The minister said he was confident there would not be a disruption to the electricity supply, even though the Phra Nakhon Nua power plant had been flooded.
Mr Wannarat said the cabinet assigned Commerce Minister Kittiratt Na-Ranong, chairman of the economic rehabilitation panel, and the Finance Ministry to jointly consider details of the proposal’s implementation.
Of the total lending portfolio, 210 billion baht will be loans for the SMEs, 15 billion baht for manufacturers in the flooded industrial estates and the remaining 25 billion for independent businesses, he said.
The funds for this lending scheme would come from;
1) 40 billion baht loan from the matching fund of the Government Savings Bank and other commercial banks.
2) 120 billion baht in loans acquired from commercial banks.
3) 50 billion baht loan from the Japan Bank for International Cooperation
4) The remaining 40 billion baht for loans for SMES and other business operators will be provided by the Government Savings Bank.
Atchaka Sibunruang, secretary general of the Board of Investment, said the BoI would offer additional investment privileges for the flood affected industrial plants.
Tax exemption for a period of eight years will also be offered to foreign investors to prevent them moving new projects to other countries, said Mrs Atchaka.
Earlier this morning, Mr Wannarat said that in order to help rehabilitate the flooded factories the government will offer tax exemption for imported machinery and raw materials.
Additional investment privileges under the framework of the Board of Investment will also be offered to flood affected manufacturers, he added.
The minister was confident that the Lat Krabang industrial estate will not be inundated because the army has joined forces with manufacturers in the effort to protect factories in the area.
Meanwhile, the flooding has forced banks and other financial institution to close branches in flood-hit areas and major retailers said they have closed some outlets because they cannot restock emptied shelves. Manufacturers could not deliver the goods they needed because of the flood.
Thirteen commercial banks and a financial firm reported that they had temporary closed a total of 283 branches in flooded provinces, the Bank of Thailand reported on Tuesday.
Of the total, 132 outlets are in Pathum Thani, 63 in Nonthaburi, 46 in Ayutthaya, 21 in Bangkok, 18 in Nakhon Sawan, and one each in Chai Nat, Lopburi and Uthai Thani.
About 270 7-Eleven convenience stores have been closed throughout the country because they cannot get supplies to replenish their stocks, the franchise operator CP All Plc said on Tuesday.
The announcement said that the flooding had caused people to panic and rush to buy necessities. There are 6,200 branches throughout the country.
Other retailers said suspension of operations by some manufacturers in flood-hit areas also contributed to the shortages of food products and other consumer goods.
Defence Minister Yutthasak Sasiprapa said the armed forces are ready to help distribute consumer goods from factories unable to transport their products to retail outlets in Bangkok.
“Big C super centre was the first retailer to ask for such support,” Gen Yutthasak said.
Energy Minister Pichai Naripthapan said there will continue to be sufficient supplies of fuel oil, natural gas and electricity throughout the country.
Mr Pichai admitted delivery of natural gas and oil to the North and Northeast may be slow as normal transport routes have been flooded.
The minister said he was confident there would not be a disruption to the electricity supply, even though the Phra Nakhon Nua power plant had been flooded.
Source: Bangkok Post
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