Thailand has estimated the initial costs of evacuation and damaged property at more than 10 billion baht ($307.88 million) after a five-day border conflict with Cambodia, and is expecting the eventual economic impact to be even bigger, the finance minister said on Tuesday.
The government is preparing an initial budget of 25 billion baht ($771 million) to mitigate the effects, Pichai Chunhavajira told reporters.
“I have to gather the budget for this as it will also stimulate the economy because there will be construction, house repairs and many more,” he said.
“It might not be enough and we may need to seek more,” he said, adding the initial estimated damage had yet to include the disruptions in trade.
In a separate statement, Pichai said the finance ministry had announced various relief measures to assist people and businesses affected by the border conflict.
State-owned banks are offering measures including loan repayment deferrals, low-interest loans, refinancing options, and fee exemptions to support recovery efforts, he said.
Tax measures include extending tax filing and payment deadlines to September, and tax deductions for repair costs — up to 100,000 baht for homes and 30,000 baht for vehicles, Pichai said.
The government has also allocated 100 million baht to each affected province to meet local needs, which can be increased if necessary, he said.
($1 = 32.48 baht)
Decades of dispute
The Southeast Asian neighbours have wrangled for decades over border territory and have been on a conflict footing since the killing of a Cambodian soldier in a skirmish late in May, which led to a troop buildup on both sides.
They accused each other of starting the fighting last week that escalated quickly from small arms fire to the use of heavy artillery and rockets at multiple points along their 800-km land border causing at least 33 fatalities and displacing over 150,000 civilians.
Cambodia’s defence ministry said 13 people have been confirmed killed in the fighting since Thursday, including eight civilians and five soldiers, with 71 people wounded.
Thai authorities reported 13 civilians and seven soldiers have died on their side, taking the toll across both nations higher than it was in the last major round of fighting between 2008 and 2011.
Following five days of heavy cross border fighting, Thailand and Cambodia agreed to an immediate ceasefire, effective from July 28. The agreement was reached through mediation led by Malaysian Prime Minister Anwar Ibrahim, with support from the United States and China.
