Credit for Construction and Real Estate Sectors Remains Robust

• 2 August 2018
• Local News
• 2094 Views

The financial stability risk assessment in Cambodia by the National Bank of Cambodia (NBC) has shown that credit for the construction and real estate sectors remains in good condition due to the low rate in non-performing loans.

According to the 2018 semi-annual report by NBC, non-performing loans in the construction and real estate sectors are still low. Indicators show that currently non-performing loans for the construction sector stand at a rate of 0.37%, real estate activities stands at 0.12%, and residential loans stands at 0.07%.

Meanwhile, despite the fall in credit for private sectors, credit for construction and real estate continued to grow at a high rate of 37%. In the construction sector, credit has grown by 30.5% year-on-year (YoY), real estate activities grew at 34.9% (YoY) while residential loans grew at 31.4% (YoY).

Among the total credit across all sectors, construction shares 10% of the total credit, real estate activities shared 6.5% and residential loans 9.8%.

However, the National Bank of Cambodia (NBC) will continue to monitor and study real estate developments and is in cooperation with other relevant ministries and institutions while also developing a property price index which could be the basis to introduce macroeconomic safeguard measurements in the future.

• Analysis
• Business and Market