Government announces US$2 billion liquidity adjustment package for banking sector

• 16 April 2020
• Local News
• 5898 Views

The government has announced a US$2 billion liquidity adjustment package, with the central bank relaxing its reserve requirement for banks as a measure to address the economic impact effects from COVID-19.

The statement was made by Ms Chea Serey, National Bank of Cambodia Assistant Governor during an interview with CNBC where she explained the government’s measures to address the economic impact of COVID-19.

The Assistant Governor posted on her Instagram the announcement of the US$2 billion stimulus package and National Bank of Cambodia (NBC) easing liquidity for the banking sector.

“With this US$2 billion budget, we should be OK from now till the end of the year. However, during this interval, the government should have sometimes to think of additional measure as well. We weren’t completely caught off guard especially when it comes to our factory workers. The government and the central bank were already bracing itself for the worst-case scenario of EBA.” she wrote.

In terms of measures to address economic issues in the post-COVID-19 environment, the government has not yet prepared them in full as the virus pandemic has brought about a huge impact on tourism industry just like many other countries.

However, while this global pandemic attacks almost every aspect of core economic pillars, Chea Serey pointed out that the agriculture sector remains responsive and has become more active. Especially, recently a large number of migrant workers have just returned home. Thus, this is a new job opportunity for them and hopefully, they can contribute to this sector.

The National Bank of Cambodia issued a statement dated 27 March 2020 to grant relief for home improvement loans and housing loans through loan restructures from banks and microfinance institutions (MFIs). The directive aimed to ease the burden of loan borrowers whose incomes are reduced and have difficulty paying back due to the COVID-19 pandemic.

• Economy and Finance
• Policy and Strategy