MICROCAPITAL BRIEF: Microfinance institutions in Cambodia restructured $ 1.7 billion in loans in early 2021, restructuring requests peaked in Q2

0

Kaing Tonnggy, communications director of the Cambodian Microfinance Association (CMA), which has 114 members, reportedly said CMA members restructured around $ 1.7 billion in loans in the first six months of 2021 Beginning of 2021, approximately 1,000 loan restructuring requests were filed every week. However, with the start of the third wave of COVID-19 infections in Cambodia, that number rose to 20,000 requests per week in April and May before falling back to around 2,000 per week in July.

The National Bank of Cambodia (NBC), the country’s central bank, has reportedly said that financial institutions of all types have restructured loans worth KHR 22,200 billion ($ 5.5 billion) for around 370,000. borrowers in the country from January 2021 to June 2021. This follows the restructuring of $ 4.2 billion in loans in 2020, in accordance with a directive issued by NBC during the early stages of the COVID-19 pandemic. The restructuring included extensions of credit periods, lower monthly payments and “in extreme cases” full suspensions of repayments for up to 6 months. During this process, NBC has prioritized the transportation, clothing, construction and tourism sectors as they have been hit more by the pandemic than average.

CMA is an NGO that was established in 2004. The organization helps its members access equity and loans, implement the latest technology, and resolve conflicts with other MFIs.

Created in 1954, the BNC has the following responsibilities: formulating monetary and exchange rate policies, regulating financial institutions and issuing the national currency – the riel.

By Divya Deshmukh, Research Associate

Additional sources and resources

Phnom Penh Post article on loan restructuring, July 2021
https://www.phnompenhpost.com/business/nbc-financial-institutions-h1-restructure-55-billion-loans

Phnom Penh Post article on loan restructuring, March 2020
https://www.phnompenhpost.com/business/nbcs-directive-restructure-credit-targeting-four-sectors

CMA Home Page
https://cma-network.org/

NBC Home Page
https://www.nbc.org.kh/

Did you know that MicroCapital publishes the MicroCapital Monitor journal every month? To learn more, visit https://www.microcapital.org/products-page/.

Similar articles:


Source link

Share.

Leave A Reply