More farmers in the flood-ravaged South and the Central province of Prachuap Khiri Khan will be eligible for a two-year debt-moratorium programme after the cabinet agreed to enlarge the scope of the scheme yesterday.
The cabinet has agreed to raise the number of flood-affected farmers under the programme from 212,850 to 260,389, Natthaporn Jatusripitak, an adviser to the minister of the PM's Office, said after the meeting at Government House.
The annual budget allocated for this was raised from 1.96 billion baht to 2.39 billion baht, Mr Natthaporn said.
"The measure aims to assist flood-affected farmers who are customers of the Bank for Agriculture and Agricultural Cooperatives [BAAC]," he said.
"Their farmland and rice yields have been devastated by floodwater, resulting in a 50% decrease in their incomes."
Farmers who were required to settle the principal of a loan to the bank by Dec 31 last year can extend the debt settlement by up to two years.
However they must still make good on their accrued interest charges so far, according to the latest cabinet resolution.
None of the eligible farmers will be charged interest on their loans from the beginning of this year until the end of 2018, officials said.
For the vast majority, the government will pay the bank an annual interest amount to cover this.
The bank said it would absorb the interest payments of the 13,951 farmers who have non-performing loans (NPLs).
"More farmers who are non-NPL debtors want to participate in the programme, resulting in the bigger budget spread over two years," Mr Natthaporn said.
Prime Minister Prayut Chan-o-cha visited Khon Kaen yesterday to inspect the flood situation there after over 5,000 rai of rice paddy in Muang district were inundated.
Somkiat Prajamwong, director-general of the Royal Irrigation Department, said communities were ravaged by run-off after a large volume of water flowed into the Ubon Ratana Dam, forcing officials to discharge it downstream.
Mr Somkiat debriefed the premier on what measures were being taken to address the situation during Gen Prayut's visit to the stricken province, he said.
