Cambodia’s loan demand rose by 20.7% in H1, 28.8% of which from construction and property sector

• 9 July 2020
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Bank loan demand in Cambodia rose by 20.7% to US$26.7 billion during the first half of 2020, of which the construction and real estate sector accounted for 28, 8%, according to the biannual report of the National Bank of Cambodia.

The report continues that the loans have been given to key sectors and among which personal mortgages accounted for 11.6%, property loans 8%, and construction loans 9.2%.

Despite this credit growth, the construction sector is likely to decline due to the decrease in demand, the completion of some construction projects, and in particular, the decline by 14% in construction material imports due to the COVID-19 pandemic, says the report.

NBC Governor H.E Chea Chanto said at the NBC’s biannual meeting that, although the COVID-19 pandemic is severely threatening economic growth, the banking sector remains strong and actively contributes to the economy.

“In the banking sector, the main risks arising from the prolonged COVID-19 pandemic include a decline in the incomes of people and businesses which can lead to a drop in the growth of loans and deposits, a fall in construction and real estate, and a slowdown in foreign capital inflows into the banking sector,” H.E Chea is quoted as saying in Xinhua News.

The same report also stated banking sector assets grew by 17% to US$44.6 billion in the first half of 2020, indicating a positivity that the banking sector in Cambodia is sustainably growing despite the pandemic.

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