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NBC reiterates ID not to be used as collateral

NBC reiterates ID not to be used as collateral

The National Bank of Cambodia (NBC) has once again reminded all private lenders not to take ID cards or family books as collateral for loans, according to a statement released on Tuesday.

The NBC document reminds all institutions to follow a similar message issued by them in March 2016 banning the practice.

In the past, people living in rural areas have used the documents as collateral for small loans from private lenders. The NBC said it would take action against lenders who continue accepting the documents by putting sanctions on them or revoking their licences.

The message comes one day after a ruling party order calling for high level officials to help people get back any documents held so they could vote in the upcoming elections.

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