Thailand - Thai Cabinet agrees on financial aids to flood victims

Bangkok (The Nation/ANN) - Thai Cabinet on Tuesday endorsed compensation and rehabilitation measures for residents, businesses and farmers affected by the severe flooding.

The measures include compensation of up to 30,000 baht (US$971) for each affected household, more than 25 billion baht (US$809 million) in low-interest loans for flood-hit small and medium-sized enterprises (SMEs) and 60 billion baht (US$1.9 billion) in low-interest loans for affected farmers.

The floods have hit more than 700,000 households across 26 provinces.

The Cabinet agreed to provide maximum compensation of 30,000 baht (US$971) for any house damaged or destroyed in the flooding. Thailand's Interior Ministry was assigned to conduct a survey in provinces where flood waters have receded in order to determine the number of affected properties and the compensation required.

Thai Prime Minister Yingluck Shinawatra received enthusiastic applause from her Cabinet members during Tuesday's meeting to compliment her for her "toughness in tackling the flood problem", according to PM's Office Minister Surawit Khonsomboon.

Yingluck thanked her colleagues for their moral support and assistance, and told them that she had no worries, he said.

Situation won't worsen: PM

Yingluck told the Cabinet that flood waters were being released into the sea and that the situation would now not worsen.

It was agreed during the meeting that the situation would improve after this coming weekend, according to Surawit, who did not elaborate.

The proposed 900-billion-baht (US$29 billion) "New Thailand" project - for integrated solutions to the country's water-related problems - was not discussed by the Cabinet. A source said the idea could be raised at the next meeting of economic ministers next week.

Low-interest loans for flood-hit SMEs will be provided through the Small Business Credit Guarantee Corp and the Government Savings Bank. The goal is to help affected SMEs recover quickly from the flooding.

The Cabinet also endorsed rehabilitation measures for flood victims, as proposed by the National Economic and Social Development Board.

These include ensuring a comfortable environment for people evacuated to shelters, taking good care of patients among the flood victims, preventing thefts in residential areas from which people have been evacuated, and setting up "food banks" in provinces unaffected by the flooding to ensure sufficient supplies for those who have been affected.

Ministries and state agencies - including the Interior Ministry, the Public Health Ministry, the Social Development and Human Security Ministry and the Royal Thai Police - were assigned to take care of this work.

Low-interest loans totalling 60 billion baht (US$1.9 billion) were endorsed by the Cabinet to help farmers recover their damaged plantations and quality of life. The loans will be provided via the Bank for Agriculture and Agricultural Cooperatives (BAAC).

Affected farmers will be given free rice seeds and breeding stocks of fowl and fish, and medical help for their animals.

The BAAC will waive debts for the spouses or children of its customers who died in the flooding, while the bank's customers hit by the floods will be allowed a debt moratorium. The Finance Ministry is considering whether the moratorium should last three years.

The Cabinet also endorsed a plan to salvage seven inundated industrial estates in Ayutthaya and Pathum Thani.

Deputy Prime Minister Kittiratt Na-Ranong assigned the Industry Ministry and the Industrial Estate Authority of Thailand to implement a water-removal action plan to allow the estates to resume operations within 45 days.

Piyanart Srivalo in Bangkok/The Nation | ANN

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