Heavy flooding has wreaked havoc across the Northeast, bringing back vivid memories of the 2011 flood disaster for many Bangkok residents and rural dwellers, but policymakers and business operators have not been idle in lending a helping hand to those affected.
Economic damages
Flash floods in some northeastern provinces are estimated to have had a smaller impact on the economy than flooding in the South earlier this year as the submerged areas in the Northeast are farmland, a senior official at the Bank of Thailand said.
"It's too early to estimate the economic impact caused by the ongoing flooding in the Northeast as we have to wait and see how long it will last," said Don Nakornthab, senior director in the macroeconomic and monetary policy department at the Bank of Thailand.
But compared with the South, the Northeast's GDP contribution is smaller, while its economic activities are concentrated in the agricultural sector, he said.
Somprawin Manprasert, chief economist and executive vice-president at Bank of Ayudhya, said that the flooding is expected to shave off a smaller slice of GDP than the 0.13% lost in the South.
"The economic activities in the area are mainly agricultural, with rice crops only accounting for 2% of the country's total crop, so the effects on total production and price are expected to be minimal," he said.
Rescue pact for SMEs
The Industry Ministry estimates around 600 factories in northeastern cities were hit by flooding, of which 16%, or 100 factories were for small and medium-sized enterprises (SMEs).
The Industry Ministry's permanent secretary, Somchai Harnhiran, estimated the total financial damage from the flood in seven northeastern cities at more than 10 billion baht. Some 7,863 houses were damaged and 23,538 people were adversely affected in the process.
Mr Somchai said the factories that were hit by the flood covered garment, agriculture and food processing sectors, while other agriculture crops such as rice, corn and tapioca were damaged.
He said the first rescue measures will entail financial aid such as debt restructuring and rehabilitation to allow businesses to operate smoothly going forward.
But all financial aid packages must be signed off on by the Finance Ministry and the Bank of Thailand before they can be submitted to the cabinet for approval.
"The flooding fund totals 5 billion baht, with 3 billion having already been spent in the South, leaving the government 2 billion to help local businesses. The ministry need to expand the budget and areas to help SMEs," said Mr Somchai.
The Royal Irrigation Department (RID) forecasts the situation will gradually return to normal within a week.
Lertchai Sri-anan, director of the RID's Office of Water Management and Hydrology, said major financial districts had stayed intact.
Banks' financial assistance
Krungthai Bank will help its mortgage borrowers affected by the flooding by allowing them to suspend payment for both principal and interest for three months, further slashing the interest rate to 0.25% for the fourth to the 12th months.
The bank's SME loan borrowers will be eligible for a principal payment grace period of up to one year, interest rate reduction by up to 1 percentage point and an extended loan term by up to one year. The bank will also offer its SME customers a special loan, with a maximum five-year repayment period and a one-year grace period for principal payment, with interest rates starting from 3.75% annually.
Kasikornbank is offering affected SME loan borrowers a grace period of up to 12 months on the principal payment and extend maturity for promissory notes and credits line for overseas trade for up to six months.
Retail chains to reopen
Salinla Seehaphan, corporate affairs director at Ek-Chai Distribution Center -- the operator of Tesco Lotus hypermarket -- said the flash flooding had forced two hypermarkets in Ampur Maung Sakon Nakhon and Ampur Sawangdandin to remain closed since Saturday.
As the water recedes, the company is studying the possibility of reopening the two stores. Ms Salinla said the firm has been delivering fresh food and dry groceries to its outlets more frequently to ensure that its customers have access to essential items during the flood.
The company is still evaluating the flood's impact to its properties and inventory. "For now, our priority is to support people in the affected communities," she said.
Banyat Kamnoonwat, assistant vice-president of CP All, the operator of 7-Eleven convenience stores, said only six locations out of 51 in Sakon Nakhon closed because of the flooding. Its logistics team is rerouting products to ensure all stores are properly stocked.
"We are back to business as usual. The six stores closed for a couple of days, but they are already up and running," said Mr Banyat.
Airport ban lifted
The aviation authority yesterday cleared Sakon Nakhon airport for resumption of commercial flights. The Department of Civil Aviation Authority has revoked a notice warning airlines not to operate at the airport. That will allow Nok Air and Thai AirAsia to restart their services today.
A Sakon Nakhon airport official yesterday confirmed no significant damage had been registered at the airport, which was closed on Friday.
Affected airlines passengers were given relief such as the permission to change flights, rerouting to the nearest alternate airport in Nakhon Panom, or even ticket refunds. Thai AirAsia also provided buses to transport affected passengers from Sakon Nakhon to board flights at Nakhon Phanom.
Help for mobiles
Mobile leader Advanced Info Service (AIS)'s engineering team is installing power generators and fixing communication networks for people whose electricity was cut off during the flood.
Wilai Kiangpradoo, AIS's senior vice-president, said every AIS customer in the Muang and Pannanikom districts can make 50 minutes of free calls across the network for 30 days. Payment for monthly subscribers has been extended to Aug 4, 2017.
Like AIS, second-ranked operator Total Access Communication installed mobile power generators to provide 24-hour customer support in Sakon Nakhon. The firm extended the payment period for monthly subscribers until Aug 4. True Move also extended the payment period for monthly subscribers until Aug 14 and 30 days for prepaid users, together with 30 days free calls.