Mak Reaksmy (far left), director of the Regulatory Policy and Risk Assessment Department at the National Bank of Cambodia (NBC) gives a presentation during a roundtable discussion on the “Debt Situation in Cambodia” on December 4. Hin Pisei
As of the end of November, restructured loan accounts in Cambodia totalled over 57,000, amounting to approximately $850 million, or 1.5% of the country’s total loan portfolio, according to an official at the National Bank of Cambodia (NBC).
Mak Reaksmy, director of the Regulatory Policy and Risk Assessment Department at the NBC, shared the figures during a December 4 discussion on the “Debt Situation in Cambodia”, organised by the Royal Academy of Cambodia.
She revealed that financial institutions (FIs) had refinanced loans for over 53,000 clients by the end of November, attributing the discrepancy in client versus account numbers to individuals holding loans with multiple institutions.
Reaksmy stressed that loan restructuring aims to ease financial burdens for borrowers facing income challenges.
She noted that the current level of refinancing remains low, at 1.5%, compared to over 10% during the Covid-19 pandemic when broader measures were implemented by the central bank.
“According to the report, the number of loans has indeed decreased, but at the same time, we also observed that the profits of financial institutions [FIs] have remained stable. This means that even though the number of loans is lower, banks can still survive through their profits. This indicates that the banking sector as a whole has maintained resilience,” she said.
Reaksmy also pointed out that while some borrowers see loan restructuring as beneficial, it ultimately results in higher interest payments due to the postponement of repayments.
Toch Chaochek, a board member of the Association of Banks in Cambodia (ABC), reported that as of October, refinanced loans in the banking sector exceeded $500 million.
He stated that loan restructuring has eased financial pressures for clients, with around 70–80% of those whose loans were adjusted successfully repaying their debts on time.
Ky Sereyvath, an economist at the Royal Academy of Cambodia, commented that the country’s debt situation remains manageable and does not pose significant concerns at this stage.
However, he noted that loan restructuring measures introduced by the central bank have yielded limited success, partly because some individuals continue to rely on informal lending systems rather than formal FIs.
Sereyvath highlighted the complexity of the debt issue, stating that the effective implementation of policies requires time and collaboration among all stakeholders.
On August 30, the NBC issued a directive instructing financial and microfinance institutions to restructure loans for clients to help ease their financial burdens. This operation is set to continue from the fourth quarter of 2024 through the end of 2025. The directive builds on similar measures introduced during the pandemic, which severely impacted household incomes across the country.
