PM calls for loan restructuring for private educational institutions

• 24 June 2020
• Local News
• 2570 Views

Prime Minister Hun Sen has called for bank institutions to prepare loan restructuring to help release the burden on private educational institutions during the post-COVID-19 period.

The PM made the call in his speech on the “Cash Transfer Program for Poor and Vulnerable Households during COVID-19” on 24 June 2020.

“The National Bank of Cambodia should discuss with private banks and other financial institutions about the loan restructuring process. We have given loan restructuring to more than 100, 000 families, but please consider it for private educational institutions as well,” he said.

He also gave an example that private institutions can reap benefits from the loan restructuring to organise online study or distance learning as some of them are not able to set up this online platform yet.

“For example, some private education institutions have already put up their land titles to borrow money from the bank so they cannot borrow more. Suppose that their US$5 million building and land could be exchanged for a US$500,000 loan. We can now increase the loan to US$ 800,000, which mean they can have US$300, 000 more collateral to prepare for online study programs that some of the institutions have not yet availed,” he explained.

Additionally, he also called for the owners of the leased buildings to understand the situation and lowering the rent to ensure educational institutions are not affected much during this time.

In April, the Ministry of Education made the same call after 113 private educational institutions claimed that their businesses had been severely affected by COVID-19 crisis and were facing bankruptcy. (Read more)

• Economy and Finance
• Policy and Strategy