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.
