Banks, MFIs waive interest payments amid Covid outbreak

Old market vendors sit inside the market after the Daun Penh district administration has temporarily closed this morning. Yousos Apdoulrashim

The Association of Banks in Cambodia (ABC) and Cambodia Microfinance Association (CMA) have jointly decided to waive interest payments for two months for debtors affected by Covid-19 at the request of Prime Minister Hun Sen.

In his national address regarding the Covid-19 situation on April 10, Hun Sen said the government appreciated the six relief measures jointly issued by ABC and CMA to help cash-strapped customers amid the ongoing community outbreak. Hun Sen called on the two associations to further delay debtors' repayment.

In a joint statement on April 12, ABC and CMA said they supported providing automatic loan restructuring, but only on customers' consent.

“For customers under quarantine, loan restructuring shall be automatically provided [if they agree and apply to each financial institution]. The principal and interest repayments are to be postponed for two months with all penalties waived,” read the statement.

“In case of necessity, those hit hard by covid-19 can consult each bank and financial institution. During this tough situation, the associations assure that there will be no penalty,” it said.

Contact author: May Kunmakara

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