Thailand approves $11.3 billion of support measures for businesses

FILE PHOTO: A view of the port of Bangkok, Thailand May 26, 2016. REUTERS/Jorge Silva/

BANGKOK (Reuters) - Thailand's cabinet on Tuesday approved financial measures worth 350 billion baht ($11.31 billion) to help the business sector recover from the impact of coronavirus outbreaks, government officials said.

The measures include 250 billion baht of soft loans provided by the central bank and another 100 billion baht and for a so-called "asset warehousing" scheme to support debtors who are unable to repay loans.

The support for debtors includes the transfer of collateral assets for debt settlement and giving debtors the right to rent their assets or buy back their assets later.

The COVID-19 outbreak situation at home and abroad has had "a widespread and longer than expected impact", affecting the business sector's ability to access liquidity and capital, Finance minister Arkhom Termpittayapaisith told a briefing.

The cabinet also agreed on additional subsidies to boost domestic travel to help a struggling tourism industry in the absence of foreign visitors.

Southeast Asia's second-largest economy could grow at the upper 2% levels this year, less than the 3.2% previously projected, according to the central bank governor. The economy suffered its biggest contraction in over two decades last year, with the tourist sector battered.

The tourism sector slump has continued since last April’s tight travel curbs that saw foreign arrivals fall 99.8% in January from a year earlier. Foreign receipts made up over 11% of gross domestic product in 2019.

($1 = 30.94 baht)

(Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Editing by Ed Davies)