Prime Minister Hun Sen on April 8 called for a moratorium on housing foreclosures and arrests of “needy” borrowers of loans from banks and microfinance institutions (MFIs), given the current economic environment.

Speaking at an event at the Koh Pich Convention and Exhibition Centre, the premier seemed to rule out a large-scale interest freeze.

“Interest will pile up for those borrowers who have the money but refuse to pay them [the financial institutions] back. So, if you have the money, pay them back,” he stressed, expressing appreciation to formal lenders for their positive contributions.

Hun Sen had made a similar comment a day earlier, at a plenary session of the Council of Ministers, as reported by the council – or Cabinet – in a statement.

He asked relevant authorities and institutions to keep tabs on the situation surrounding bank and MFI loans to prevent foreclosures and arrests of people who could not afford to repay their debt, in the context of Covid-19 and present economic circumstances, the statement noted.

On the other hand, these financial institutions are encouraged to take legal action against any individuals who – with perceived malicious intent – push for the non-repayment of loans, it affirmed.

Hun Sen cautioned against ill-intentioned members of political parties who may promise loan cancellations in the event of an election victory.