Logo of Phnom Penh Post newspaper Phnom Penh Post - Banks, MDIs urged to provide loans

Banks, MDIs urged to provide loans

Content image - Phnom Penh Post
The NBC has called on banks and money-deposit taking institution (MDIs) to continue disbursing loans and possibly suspend interest for businesses impacted by the Covid-19 outbreak. POST STAFF

Banks, MDIs urged to provide loans

The National Bank of Cambodia (NBC) has encouraged banks and money-deposit taking institution (MDIs) to continue disbursing loans and possibly suspend interest for businesses impacted by the Covid-19 outbreak, especially in the tourism industry.

The NBC’s call was made during a meeting with representatives from banking and micro-finance institutions (MFIs) on Wednesday to discuss and explore potential protection mechanisms in light of the global spread of Covid-19.

Director-general of banking supervision Rath Sovannorak issued three measures amid the outbreak of Covid-19 to ensure business operations can continue in affected sectors.

“First, all financial institutions must continue to proactively disburse loans to some prioritised sectors to ensure the sustainability of business operations.

“Second, to be flexible in monitoring the possibility of easing and suspending the principle and interest, especially for hotel and guesthouse owners and other tourism-related businesses.

“Third, continue monitoring and taking some risk prevention measures on staff and customers to ensure the sustainability of the operations in the industry considering the spread of Covid-19.”

President and group managing director of Acleda Bank In Channy confirmed that he was in the meeting with the NBC on Wednesday, noting that it encouraged and advised banks to continue providing loans.

“As for Acleda Bank, we continue to provide financial services based on the business of customers as well as their needs.

“You may know that the average loan size of Acleda Bank is equivalent to $9,000. We have given out over 403,000 loans, of which over 76 per cent are for small businesses,” he said.

Channy said the banks have policies, procedures and guidelines in place in case of natural disasters or virus scares.

“So far, we haven’t seen any serious impact. The focus of banks is different from one to another since we have different segmentation to focus on.

“Some focus on corporate banking and others on retail. Acleda Bank has small- and medium-sized enterprises [SME] as its focus. So we have different challenges and actions to take,” he said.

Say Sony, the senior vice-president of Prasac, told The Post that it is well prepared for any risks that occur due to the virus outbreak.

“Prasac will keep lending to clients who have repayment capacity as normal. However, we will also keep monitoring our performance closely to make sure that our non-performing loan ratio remains manageable.

“As of now, we don’t see any sign of a slowdown, but we can see more demand for credit from our clients, particularly from the SME sector.

“To respond to this, we are considering the government initiative to support SMEs by lending to them with special conditions,” he said.

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a