Logo of Phnom Penh Post newspaper Phnom Penh Post - A stronger Phillip Bank offers a lifeline for embattled borrowers

A stronger Phillip Bank offers a lifeline for embattled borrowers

Content image - Phnom Penh Post
Some 2,700 customers have benefited from Phillip Bank’s loan restructuring exercises since the outbreak of the Covid-19 pandemic.

A stronger Phillip Bank offers a lifeline for embattled borrowers

Phillip Bank Plc, which merged with KREDIT MFI in January, is putting in place a safety net for all its loanees facing a cash-crunch due to the Covid-19 outbreak.

The lender has reached out to around 2,700 of its borrowers to assist them in rescheduling their loan repayments at a time when businesses are facing financial hardships due to the health scare since March.

Phillip Bank has focused on three key segments: retail – cars, housing and personal loans – micro loan borrowers, and corporate – small and medium-sized enterprises.

Commercial banks are taking proactive measures to ensure that their loan growth is not affected and at the same time to stop bad loans – especially from the corporate sector and retail borrowers – from rising due to the slowing economy triggered by the unprecedented Covid-19 outbreak.

Joining a long list of other commercial banks in the Kingdom, Phillip Bank has introduced an assortment of remedial measures, from loan rescheduling and restructuring exercises, to minimise the impact on businesses and borrowers, and to help businesses stay afloat during this critical time.

Content image - Phnom Penh Post
Phillip Bank has 89 branches nationwide following a merger with KREDIT MFI in January.

“As a bank we need to serve and help our customers. We have restructured microloans for some 2,600 borrowers.

“Customers have a grace period of six months, mostly to pay only their interest and later pay their principal sum.

“For some customers, they don’t have to pay either interest or principal for six months.

“We follow the guidelines of the National Bank of Cambodia and want to help our customers,” Phillip Bank CEO Chan Mach told The Post.

Up to March, the bank has been involved in restructuring loans amounting to $33.5 million. The bank’s interest rate charge to micro borrowers and corporate customers are competitive in the market, he said.

Content image - Phnom Penh Post
CEO Chan Mach says it is the bank’s duty to assist customers during a crisis.

He said the main sectors to become casualties of the coronavirus outbreak were tourism, private education institutions, hotels and restaurants.

“In some cases, business operators complain they have lost 70 per cent of their monthly income. We will have to watch the next six months. Some businesses are slowly recovering,” Mach said.

Following the merger with KREDIT MFI, Phillip Bank now boasts 89 branches nationwide, with a strong workforce of 1,900 staff. It is busy streamlining its operations and providing training for its employees, and has even introduced new mobile applications as part of its digitalisation efforts.

“Along with the merger, we are building something new. Internet banking and a virtual card will be introduced, and also the loan origination, which will help us serve our customers more quickly, and also reduce our costs. We will place increased focus on new technologies and go paperless. We are set to convert 12 branches into fully fledged commercial bank operations,” Mach said.

Content image - Phnom Penh Post
The bank will​ roll out more digital banking solutions to go paperless.


  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • ‘Beware of WhatsApp fraudsters’

    The Ministry of Posts and Telecommunications warned members of the public who use WhatsApp to vigilantly guard against a new trick employed by hackers that involves the use of six-digit codes sent to potential victims via the popular messaging app. The ministry said hackers could