PM Says Bank Should Take Action Against Those Who Don’t Want to Pay Back

AKP Phnom Penh, June 24, 2020 —

Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen has called on all banks to take action against anyone who doesn’t want to pay their loans back.

Speaking at the official launch of Cash Transfer Programme for Poor and Vulnerable Households during COVID-19 held here this morning, Samdech Techo Hun Sen said there have been some wicked people who took advantage of COVID-19 crisis to incite others to stop paying their bank loans back or to withdraw their deposits from the bank, therefore the authorities and banks should take action against those propagandists.

“Those who want the banks to collapse by refusing to pay their bank loans back and by withdrawing their deposits might be disappointed. I would like to emphasise that I encourage the banks to seize the collateral of those who believe the propaganda. For those who are trying to pay off their loans, I appealed to the banks to understand them because this is a very hard time,” he underlined.

Samdech Techo Hun Sen stressed that over the world, there is no case of not repaying the bank despite any situation.

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

The move was made after Samdech Techo Hun Sen asked MFIs and banks to consider suspension of loan payments for garment workers whose factories face temporary closure due to raw material shortages in the wake of COVID-19 outbreak.

Besides, the ABC and CMA shared their hope that Cambodia’s financial sector will continue to operate by four main core pillars of client infrastructure: physical branches, electronic services, internet banking and digital mobile banking.

Cambodia has 44 commercial banks, 17 specialised banks, four representative offices and many microfinance institutions.

By Heng Panha