Ms. Lalida Periswiwatana, Deputy Spokesperson of the Office of the Prime Minister, stated that the Cabinet acknowledged the guidelines for implementing financial measures to enhance economic potential and assist debtors affected by severe public disasters, as proposed by the Ministry of Finance.
Key measures include the “SMEs Credit Boost” project, which aims to support potential small and medium-sized enterprises (SMEs) entrepreneurs to access new loans, increase competitiveness, and help drive the economy going forward.
This project utilizes a credit damage compensation mechanism for financial institutions that extend new loans to targeted entrepreneurs. The total compensation amount will not exceed THB 20 billion to incentivize comprehensive loan distribution. It is expected to facilitate the provision of around THB 200 billion in new loans to SMEs, or approximately 5% of total SME loans in the system.
Simultaneously, the Cabinet also acknowledged relief measures for debtors affected by flooding in areas declared as a level 4 severe public disaster. The measures cover individual and SME debtors who are not yet non-performing loans (NPLs), allowing for principal payment holidays and interest waivers for up to 12 months to ease debt burdens, enabling them to recover and return to economic activity promptly.
To support the implementation of these financial measures, the Cabinet acknowledged the temporary reduction of the Financial Institutions Development Fund (FIDF) contribution rate for one year, from 0.46% per annum to 0.32% per annum, for the 2026 contribution cycle. The funds, totaling approximately THB 23.4 billion, will be a financial source for the SME loan support measures and flood relief measures.
Ms. Lalida noted that the reduction of FIDF contributions will not affect the stability of the financial system or the Fund’s debt repayment plan, which is expected to be completed by 2032. All measures have been approved in principle by the Bank of Thailand and relevant agencies.
