ANNOUNCEMENT 23 Mar 2021

In March 2021, Thailand's cabinet approved a THB 350 billion (USD 10.7 billion) economic relief package to provide soft loans to SMEs and loans to the hotel owners under the Asset Warehousing Scheme.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

[ASEAN Briefing, "Thailand Approves Latest Economic Relief Package for Businesses", published on 31 March 2021, retrieved on 9 April 2021, in English]: https://www.aseanbriefing.com/news/thailand-approves-latest-economic-relief-package-for-businesses/

[Bangkok Post, "B350bn aid gets go-ahead", published on 24 March 2021, retrieved on 9 April 2021, in English]: https://www.bangkokpost.com/thailand/general/2088515/b350bn-aid-gets-go-ahead

Inception date: 23 Mar 2021 | Removal date: open ended

State loan

On 23 March 2021, Thailand’s government approved the economic relief package valued at THB 350 billion (USD 10.7 billion) to support companies affected by the economic consequences of the COVID-19 pandemic. One of the actions implemented was the allocation of THB 250 billion (USD 7.7 billion) to provide soft loans to SMEs.

Under the loan program, SMEs holding credits not exceeding THB 500 million (USD 15.4 million) with financial institutions can now apply to the new scheme for loans of up to 30% of the credit limit. The loan tenure has been set at five years. 

In the cases of SMEs with no existing open credits as of 28 February 2021, they are eligible to receive THB 20 million (USD 616,947) each.

In 2020, Thailand introduced several economic relief packages to help local businesses and SMEs recover from the impacts of the COVID-19 pandemic (see related Acts).

* THB to USD conversion as of 23 March 2021 - THB 30.84/USD

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 23 Mar 2021 | Removal date: 23 Mar 2026

State loan

On 23 March 2021, Thailand’s government approved a THB 350 billion (USD 10.7 billion) economic relief package to support companies affected by the economic consequences of the COVID-19 pandemic. Under this package, the government allocated THB 100 billion (USD 3 billion) to the Asset Warehousing Scheme.

The scheme allowed a business to use their assets as collateral for loans with the central bank assigning financial institutions to screen debtors. Debtors would have the option to buy back their assets later when they improved their financial status. The Bank of Thailand would provide the loans to financial institutions, which would be extended to debtors under this relief measure. The Asset Warehousing Scheme would last up to five years.

This regulation aimed to help the liquidity of property owners in the tourism industry. The program also aimed to prevent hotel owners from selling their entire properties to foreign investors due to the COVID-19 pandemic.

* THB to USD conversion as of 23 March 2021 - THB 30.84/USD

 

 
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