Cambodia: Financial Institutions Restructure $5.5 Billion in Loans

Source: The Phnom Penh Post

Cambodia’s banking and financial institutions have restructured 22.2 trillion riel ($5.5 billion) in loans for 367,239 borrowers in the first half of this year, to ease the burden on the public as the ongoing coronavirus outbreak dampens economic activity, according to the National Bank of Cambodia (NBC).

Cambodia Microfinance Association (CMA) Communications Department director Kaing Tongngy told The Post that the CMA’s 114 financial institution members – including four banks – had restructured more than $1.664 billion in loans for 348,094 clients as of July 11.

At the beginning of the year, the number of loan restructuring applications were fewer than 1,000 per week, but that figure jumped sharply after the third coronavirus outbreak – dubbed the “February 20 community event” marking the date it was first detected – peaking in April-May at around 20,000, before easing back over subsequent months to about 2,000 in the last week, he said.