The Bt3-billion tsunami fund was set up about 18 months ago with capital from the Thai Bankers' Association, the Stock Exchange of Thailand and the Government Savings Bank.

The money raised was allocated to 22 business-owners who had fallen victim to the catastrophe that struck six southern provinces of Thailand on December 26, 2004.

After the tsunami fund was established, MFC took about six months to extend loans to qualified applicants.

Fifteen of the recipients are in Phang Nga's Khao Lak, six in Phuket and one in Krabi, and most are hotels and resorts.

MFC's executive senior vice president, Supakorn Soontornkit, said each borrower had received more than Bt20 million and at present their recovery was in the stage of reconstruction.

"Around November or December, two-thirds of them should begin to operate again," he said.

MFC's president Pichit Akrathit said he was confident the 22 borrowers would be able to repay their loans.

"In the first five years the interest rate is 1 per cent, fixed. After that it will float according to the market. In the early years the business-owners can also postpone repayment of interest," Pichit said.

As well as lending money from the tsunami recovery fund, MFC has sent its staff to assist in the business-operators' financial planning.

All charges for financial advice and fund-management fees have been waived for the stricken businesses.

Piyarat Setthasiriphaiboon

The Nation