A spokesman for the Cambodian Microfinance Association (CMA) said that in the last 10 weeks, from August to October 2021, the application for restructuring of customers averaged between 100-500 people per week. This decline is indicative of a recover of the Cambodian economy.
Kaing Tong Ngy stated, “In the last 10 weeks, the number of loan applicants has decreased between 100 and 500 per week. Compared to May and June, there were up to 10,000 loan applicants per week.”
He added that the decline could be attributed to a significant reduction in the impact of Covid-19 and that the number of Covid 19 victims was declining as well, which is a good sign. This shows that the Cambodian economy is gradually recovering.
He said that despite the improved situation, the MFI will continue to monitor various trends to prevent any possible impact.
“The credit restructuring policy will expire at the end of 2021, but the financial sector as a whole is studying with relevant institutions whether to extend this policy as some clients are still affected,” he said.
Mr Ngy stated that as of October 31, 378,198 customers have applied for loan restructuring in all 115 member institutions of the association, including micro-institutions where a total of 66 institutions acceptyed deposits, 10 non-deposit taking microfinance institutions, 12 financial leasing companies, 23 rural credit institutions and four banks, involving 356,775 customers, accounting for 94 percent who received loans of more than $1.720 billion.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
