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Cambodia: NBC to reduce reserve requirement interest rates
The National Bank of Cambodia (NBC) today has decided to reduce the interest rate of reserve requirement to seven percent for both local and foreign currencies.
A directive released today, signed by NBC Governor Chea Chanto on the Reserve Requirement of the Deposit and Loan for Banking and Finances, says that it is to allow banking and other financial services to provide more lending to customers.
With the reduction of the interest rate of the reserve requirement, banking and finances will have more liquidity of around $1.8billion to inject into the Kingdom’s economic activities to align with government policy.
Kith Sovannarith, deputy director general of banking supervision at the NBC, said that, with this directive, the banking and finance sector can extend loans or provide new ones to customers to sustain their business operations and support their economic activities during the COVID-19 pandemic in the Kingdom and all over the world.
The NBC is closely monitoring the consequences caused by the outbreak of the virus. It said the NBC is taking some measures to release the burden on borrowers from commercial banks and microfinance institutions that are regulated by it by encouraging them to allow the borrower to delay the capital and interest rate payments based on their situation and the ability of the relevant financial institution.
Source: https://www.khmertimeskh.com/50703089/nbc-to-reduce-reserve-requirement-interest-rates/