No Collateral Seized Despite COVID-19 Crisis: Banking Association

• Sommana Yan
• 8 July 2021
• Local News
• 1859 Views

The Association of Banks in Cambodia has confirmed that despite the COVID-19 crisis, no borrower collateral has been seized due to late payment, but rather all banks under the association have been doing their best to ease the burdens of all their clients.

General Manager of the Association of Banks in Cambodia Heng Koy said on Wednesday 7 July that the association is working closely with all members and relevant institutions to monitoring the situation.

“We do not have any reports on the confiscation of collateral. If it happens, we will facilitate to ease the situation. We do not want to add more burdens to clients as they have enough burdens from the pandemic already,” he said.

To support and facilitate clients during the difficult times of COVID-19, the Association of Banks in Cambodia and the Association of Microfinance of Cambodia have set out policies such as interest and penalties exemption for late payment, and loan restructuring.

The total number of restructured loans in 2020 was recorded at over 24,000 accounts, of which borrowers from the construction sector ranked third with a total of 20,609 accounts, according to the National Bank of Cambodia (NBC) Financial Stability Review 2020 published on 31 May. (Read more)

The report added that this huge amount of restructured loans has helped many COVD-19 affected borrowers in the kingdom.

Among 20,609 restructured loans from the construction sector, borrowers from banks, Microfinance Deposit-Taking Institutions (MDI), and Microfinance Institutions (MFI) were at 7,690, 10,531, and 2,388, respectively.

• Economy and Finance