Prime Minister Hun Sen has reiterated his appeal to all financial institutions not to take tough actions against debtors as they (debtors) faced difficulties in repaying loans amid the COVID-19 pandemicwhich is wrecking havoc on the economy.
“Now I plead with the banks as well as the microfinance institutions to understand the difficulties debtors are facing in repaying the debts. I am urging for further loan restructuring,” he said in a speech in Phnom Penh.
Mr Hun Sen however, also urged banks and microfinance institutions to confiscate the collaterals of debtors who simply refuse to repay loans, as a result of the inflammatory incitements made by former opposition activists.
“If anyone follows the rebel leader who fled the country and chose to refuse to pay the banks and the microfinance, I encourage the financial institutions to confiscate the debtors’ collateral as mandated in their loan agreements, ” he said.
In a recent statement, deranged once self proclaimed opposition leader Sam Rainsy claimed that almost three million small borrowers could no longer repay their debts after having lost their jobs or revenues amid the COVID-19 pandemic.
The National Bank of Cambodia has also issued guidelines to financial institutions on loan restructuring.
Kaing Tongngy, head of communications department at the Cambodia Microfinance Association, has told Khmer Times that following an appeal by the NBC, the MFIs have taken some actions to restructure their loans for customers affected by the COVID-19 pandemic.