Loan Repayment Suspension of Garment Workers Get the Nod

AKP Phnom Penh, March 11, 2020 —

Garment workers whose jobs suspended due to raw material shortages are now allowed to delay their loan repayments to the commercial banks and microfinancial institutions (MFIs).

In a joint statement between the Association of Banks in Cambodia (ABC) and Cambodia Microfinance Association (CMA), the customers affected by the COVID-19 outbreak get the special loan repayment suspension.

The move was made after Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, asked MFIs and banks to consider suspension of loan payments from garment workers whose factories face temporary closure due to raw material shortages in the wake of COVID-19 outbreak.

“For MFIs and banks, they shall give leeway for loan repayments of garment workers whose jobs are suspended. They face the job suspension and they have to repay the loans [to MFIs and banks], so the measure should be the delay of loan repayments or interest payments during the suspension period,” Samdech Techo Hun Sen said at the inauguration ceremony of National Road No. 55 and the groundbreaking for the construction of National Road No. 10 in Pursat province on Monday.

The Association of Banks in Cambodia and the Cambodia Microfinance Association expressed their strong support for the measures taken by the Royal Government of Cambodia.

They affirmed to continue observing the COVID-19 outbreak and take necessary actions to protect their employees and customers for the reliability and sustainability of the banking services.

By Chea Vannak