Thai Ministry of Finance Reveals Extensive Assistance Package for Casualties of Border Strife
Thailand's Finance Ministry has rolled out a significant relief package to support individuals and businesses impacted by the ongoing border unrest with Cambodia. The package, which encompasses expanded local contingency funds, broad tax relief, and diverse support from state financial institutions, is hailed as one of the most comprehensive and swift responses in the country's history.
Key features of the 2025 relief package include:
- Local-level financial support: The government has allocated 100 million baht each to governors of seven affected provinces for agile financial management. This contingency fund level is notably larger and more flexible compared to past responses.
- Tax Relief: Deadlines for filing and payment of major taxes such as Personal Income Tax, Corporate Income Tax, VAT, and others have been extended from the original July-August period to the end of September 2025. Additionally, new tax deductions have been introduced, such as home repair claims up to 100,000 baht and vehicle repair claims up to 30,000 baht, enhancing direct relief to citizens.
- State Bank Support: Several state-owned banks are offering a combination of liquidity loans, emergency loans, soft loans with low or zero interest for farmers and affected individuals, loan moratoriums on principal payments until December 2025, and reduced interest rates. The scale and diversity of these financial products—covering consumer and business loans with long-term repayment terms—represent a more tailored response than in past crises.
- SME and Export-Oriented Assistance: Special payment suspensions and debt restructuring options have been extended by the SME Development Bank and Export-Import Bank of Thailand, aiming to protect small businesses and export sectors simultaneously. This multi-institution coordination is more intricate and far-reaching than earlier efforts.
- Additional Measures: The government has fast-tracked procurement related to border security and arranged special credit guarantees for small businesses with fee waivers to facilitate ongoing operations.
In contrast, earlier relief measures during prior border or regional crises often focused primarily on immediate cash aid, temporary debt moratoria, or limited subsidies without extensive tax concessions or coordinated multiple banking institution involvement at this scale.
The 2025 package reflects a broadened and accelerated approach, recognizing the complexity of the unrest’s economic impact on various sectors and providing diversified, longer-term financial tools alongside immediate relief. This suggests an evolution in Thailand's crisis financial management towards more comprehensive and institutionally coordinated aid.
The Thai Credit Guarantee Corporation (TCG) provides guarantees for SMEs under various projects, including fee exemptions for the initial years. The SME Development Bank of Thailand (SME D Bank) offers principal payment holidays, reduced instalments, extended terms, and low-interest loans (e.g., "SME Power Boost" at 3% per year). The Finance Ministry has launched a comprehensive relief package, facilitating urgent procurement of supplies related to security missions through expedited, specific methods.
Individuals can deduct actual repair expenses for damaged residences up to 100,000 baht, and for vehicles up to 30,000 baht. The Government Housing Bank (GH Bank) implements significantly reduced interest rates for borrowers, including ultra-low rates (0.01%) for five years for general cases, and even lower rates for severely affected individuals. The Bank for Agriculture and Agricultural Cooperatives (BAAC) provides emergency loans of up to 50,000 baht with initial interest-free periods, and larger recovery loans at reduced rates.
The Government Savings Bank (GSB) offers a principal payment holiday until December 2025, unsecured low-interest loans of up to 20,000 baht, and special rates for SME customers. The Export-Import Bank of Thailand (EXIM Bank) provides debt payment extensions up to 365 days, interest reductions, and temporary credit limit increases. The Islamic Bank of Thailand (IBank) offers principal and profit payment holidays, and low-interest loans for home repair and business recovery.
Minister Pichai Chunhavajira, the Deputy Prime Minister and Finance Minister, stated that the measures are categorized into three main areas: immediate relief, long-term recovery, and economic stimulus. He expressed hope that the relief measures will alleviate hardship and provide encouragement for the affected people and businesses in the area to overcome the crisis. The government has estimated over 160,000 people have been evacuated due to the border crisis, necessitating appropriate compensation measures. Minister Pichai emphasized that the government sincerely hopes these measures will provide care for the evacuees who are not working during this period, as their income will be lost.
- In contrast to earlier relief measures, the 2025 package in Thailand offers extensive tax concessions, such as home repair deductions and vehicle repair claims, beyond the typical immediate cash aid and temporary debt moratoria.
- The relief package includes various financial tools designed to assist businesses, like the SME Power Boost loan offered by the SME Development Bank of Thailand at a rate of 3% per year.
- The Thai Credit Guarantee Corporation extends guarantees for SMEs under multiple projects and offers fee exemptions for the initial years.
- The government has facilitated urgent procurement of supplies related to security missions through expedited, specific methods, demonstrating a shift towards more comprehensive and institutionally coordinated aid.
