Thai Finance Ministry Unveils Sweeping Relief Measures for Border Conflict Victims

Thailand's Finance Ministry has swiftly rolled out a comprehensive package of relief measures aimed at assisting individuals and businesses affected by the ongoing border unrest with Cambodia.

The initiatives encompass expanded financial support at the provincial level, significant tax concessions, and a wide array of aid from state financial institutions.

Speaking on Tuesday, Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the urgent measures were categorised into three main areas.

Local and Financial Support

Under the local-level measures, the government has expanded contingency funds, allocating 100 million baht to the governors of seven affected provinces, with the readiness to consider further increases if required.

This aims to provide provinces with agile financial management capabilities. The Ministry will also facilitate the urgent procurement of supplies related to security missions through expedited, specific methods.

Furthermore, credit measures are being prepared through state banks, such as the Bank for Agriculture and Agricultural Cooperatives (BAAC). This includes providing liquidity loans to farmers and low-interest "soft loans" for those who have incurred damages.

Tax Relief

Significant tax concessions are also part of the package. Deadlines for filing and payment of various taxes, including Personal Income Tax, Corporate Income Tax, Withholding Tax, Value Added Tax (VAT), Specific Business Tax, and Stamp Duty, have been postponed. The original period between 24th July and 31st August 2025 is now extended to 30th September 2025.

Additionally, provisions have been made for repair cost deductions: individuals can deduct actual repair expenses for damaged residences up to 100,000 baht, and for vehicles up to 30,000 baht.

State Financial Institutions Step Up

Several state financial institutions have jointly introduced a range of support programmes for affected debtors and businesses:

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.

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.

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.

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).

Export-Import Bank of Thailand (EXIM Bank): Provides debt payment extensions up to 365 days, interest reductions, and temporary credit limit increases.

Islamic Bank of Thailand (IBank): Offers principal and profit payment holidays, and low-interest loans for home repair and business recovery.

Thai Credit Guarantee Corporation (TCG): Provides guarantees for SMEs under various projects, including fee exemptions for the initial years.

Minister Pichai acknowledged the human impact of the crisis.

"We have already prepared relief measures. The government has estimated that over 160,000 people have been evacuated in this incident, and we need to consider how to provide care, because among them are evacuees who are not working during this period, so their income will be lost, necessitating appropriate compensation measures," he stated.

"The Ministry of Finance sincerely hopes that these measures will alleviate the hardship and provide encouragement for the affected people and businesses in the area to overcome this crisis," Pichai concluded.