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Bank loans improving the real estate sector

Jason Boken / Khmer Times Share:
The World Bank has recently forecast Cambodia’s economy will grow by 4 percent in 2021, while the Asian Development Bank positively foresees that growth will rebound by 5.4 percent in 2021. KT/Pann Rachana

Customer credit at banks in Cambodia reached $37.3 billion in 2020, a 14.8 percent increase. More than 30 percent of this was allocated to the construction and property sectors, according to a recent National Bank of Cambodia (NBC) report.

The same report also added that bank credit given to the construction sector was 9.2 percent, property 8.5 percent, and mortgages 12.8 percent.

As of the end 2020, the active assets of the banking sector in Cambodia reached $59.5 billion, while deposits were recorded at $33.8 billion, a 15.7 percent and 15.4 percent increase, respectively.

Banking and microfinance institutions in Cambodia were also doing well in keeping their credit secured. Although non-performing loans slightly increased by 2.7 percent for banks and 1.8 percent for microfinance institutions, the rates are still low and controllable.

Given the pandemic, restructured loans in 2020 increased to more than 280,000 accounts, equivalent to $4.2 billion. However, the number of transactions fluctuated from month to month depending on the demand and economic conditions.

Overall, according to the report, the banking and microfinance sectors in Cambodia remain robust amid the pandemic. However, NBC also predicts other risks that can possibly affect banking sectors.

They include the prolonged pandemic, slow economic growth in the region and the world, protectionism, climate change, rise in family debt, a slowdown in tourism and especially any downward trend in the construction and property sectors.

The World Bank has recently forecast Cambodia’s economy will grow by 4 percent in 2021, while Asian Development Bank positively foresees that growth will rebound by 5.4 percent in 2021.

The Peak is a luxury retreat 55-storeys high. It brings a whole new level to everyday life with state-of-the-art homes, shops, restaurants and offices within reach of the prestigious, world-famous  Shangri-La Hotel, that boasts inviting restaurants, bars and ballrooms.

There is no such diverse development like it anywhere else.

The Peak, comprising two towers of some 500 units each, stands out with its eye-catching bronze cladding and attention to detail within.

It is strategically located in the heart of Phnom Penh, facing the Mekong River and only 10 minutes from popular Bassac Lane, which boasts a dynamic variety of bars, clubs and restaurants.

 

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