Government’s Post-Flood Operations to Ensure Economic Recovery

(18/10/2011)

The Government is confident that its post-flood operations, which comprise various assistance measures, will bring about quick economic recovery. Speaking after a meeting of the Post-Flood Rehabilitation Committee at the Flood Relief Operations Center at Don Mueang Airport on 17 October 2011, Deputy Prime Minister and Commerce Minister, Mr. Kittiratt Na-Ranong, pointed out that the current severe floods would impact the country’s economic growth. He cited an assessment by the Office of the National Economic and Social Development Board and the Bank of Thailand that damage from the floods was estimated at between 1 and 1.7 percent of gross domestic product (GDP). However, the Government needs to reassess the damage, as the flooding situation is still continuing. It is certain that quick economic recovery would reduce the flood’s impacts. Mr. Kittiratt said that the meeting discussed measures to help various groups of flood-hit people, such as farmers, entrepreneurs, workers, and the general public. It assigned relevant agencies to study details of these measures and resubmit them for consideration in the next meeting. He revealed that the Cabinet would be asked to approve a budget of 80 billion baht to help flood victims. If necessary, it would secure a loan to stimulate the economy in order to improve the situation. The Bank of Thailand will ensure financial liquidity for entrepreneurs, especially those in flood-hit industrial estates. It will seek cooperation from various commercial banks to extend the repayment period and cut loan interests for the affected businesses. Another post-flood measure is to offer credit for both entrepreneurs and other people whose livelihood are at risk. Six industrial estates affected by the ongoing floods include Saharattananakorn, Rajana, Hi-Tech, and Bang Pa-In in Ayutthaya province, and Bangkadi and Navanakorn in Pathum Thani province. According to Prime Minister Yingluck Shinawatra, more budget allocations were likely to be set in order to speed up post-flood rehabilitation programs, which would be divided into three phases: immediate, after flood water recedes, and long-term planning for flood relief and prevention. Industry Minister Wannarat Channukul said that a number of affected workers would be sent to work at factories that are in need of employees, as a way of easing the workers’ hardships.