Financial institutions said on Wednesday that they will provide favorable easing to customers who have been affected by severe floods, following an appeal by Prime Minister Hun Sen.
On Monday, Hun Sen called on all microfinance institutions (MFIs) to throw a financial lifeline to people impacted by flooding and defer loan repayments and ease interest rates.
Hun Sen said the favors to customers should be through deferral, interest rate reduction and credit restructuring.
In a statement on Wednesday, the Association of Banks in Cambodia and Cambodia Microfinance Association said they will ease interest rates and waive penalties to customers affected by the floods.
Banking and financial institutions will provide good cooperation within the framework of consumer protection and continue to favor through the reorganization of credit under the conditions set by the National Bank of Cambodia, the statement said.
“Banking and financial institutions that are members of the Association of Banks in Cambodia and Cambodia Microfinance Association will also examine the possibility of easing interest rates, fees, and others related to credit or exemption from fines and avoid foreclosure of customers' collateral with high understanding and tolerance in accordance with the actual situation of the clients,” it added.
The NBC on Monday called on the Association of Banks in Cambodia and Cambodia Microfinance Association to help borrowers who have been hit by floods by providing deferred loan repayments and easing interest rates, and avoiding fines and foreclosure of borrowers.
As of October 17, there were 23 provinces and 137,199 families hit by flooding. To date, four people have died. Additionally, a total of 113 494 hectares of rice fields have been damaged, according to Soth Kimkol Mony, spokesman for the National Committee for Disaster Management (NCDM).