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Cambodia: Loan reforms now valued at $5.5 billion
The loan restructures for Covid-19 pandemic-stricken customers were valued at $5.5 billion in the first semester of 2021. The scheme has been extended to the end of this year.
The National Bank of Cambodia (NBC) said the ratio of non-performing loans was 2.8 percent for banks and 2 percent for microfinance institutions (MFIs).
Banks and MFIs were allowed to extend loan restructuring to borrowers whose finances were impacted by the pandemic, a move that has been extended several times since the programme’s institution to reduce financial stress.
Koy Heng, general manager of the Association of Banks in Cambodia, said the association places high hopes that the worst of the pandemic’s impact would be eased by the implementation of the policy and its flexibility in easing the pain of borrowers should the situation expand further.
“We received [instructions] from the National Bank of Cambodia to continue restructuring loans until the end of this. We expect the situation will recover in the months to come because the government is pushing the target population of 10 million to be vaccinated,” he added. “But we will continue the scheme if the situation continues.”
The association is following the status of borrowers and the general situation in maintaining flexible measures to ease borrowers’ burdens, he said.
The NBC says banks and MFIs have remained resilient, providing sustainable financial services.
A statement from the NBC said it has contributed to keeping price stability and maintaining economic confidence as well as implementing a stimulus through monetary policy to support economic activities..
The NBC directive said banks and financial institutions could reduce borrowers’ principal amounts, lower interest rates, extend pay schedules and offer grace periods as part of their restructure.
Source: https://www.khmertimeskh.com/902225/loan-reforms-now-valued-at-5-5-billion/