National Bank urges institutions not to foreclose on the property during COVID-19 crisis

• Sommana Yan
• 2 April 2020
• Local News
• 5587 Views

The First Deputy Inspector General of the National Bank of Cambodia has requested all banks and microfinance institutions to avoid seizure of clients’ assets while the economic situation slows down due to the COVID-19 pandemic.

According to a local press release, Mr Kith Sovannarith, First Deputy Inspector General of the National Bank of Cambodia, requested all banks and microfinance to solve their liquidity with debtors politely and follow the instructions of the National Bank of Cambodia. In addition, the bank also requested relevant financial institutions not to foreclose on mortgages, such as clients’ property, on those clients affected by the economic slowdown precipitated by COVID-19.

The request was made to ease the burden on borrowers who are facing major revenue declines and are facing difficulty with repayments. The press release was issued after the National Bank of Cambodia issued a circular, publicized on 28 March 2020, on “Restructured Credit During the Impact of the COVID-19” in order to stabilize the financial institutions and supporting economic activity.

The restructured credit targets only certain selected priority sectors such as; tourism (hotels, guesthouses and restaurants, including food, beverage, and other support services); garments (including employees); construction (credit for building houses or first shops and housing loans); transport (especially taxi drivers and tuk-tuk owners); and logistics.

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