The 121 non-bank members of the Cambodia Microfinance Association (CMA) have provided loan restructuring to 370,000 customers involving over $1.7 billion from early 2020 till late August 2022.
Loan restructuring has reduced payment pressure and helped customers to conduct business as usual without having to worry about loan repayment, said CMA communications director Kaing Tongngy.
In accordance with the National Bank of Cambodia’s (NBC) exit strategy to ensure stability in the financial sector, banks and microfinance institutions (MFI) have restricted loan restructuring exercises to customers since early 2022, especially those who have experienced loan restructuring at least once, he said.
“Since the start of Covid-19, the microfinance sector had never restricted loan disbursements, so long as customers met our criteria, especially repayment capacity. We have supported the government to ensure better access for finance for SMEs [small- and medium-sized enterprises] as part of the national economic recovery.
“In difficult times, SMEs need more capital than ever to continue or restart their operations,” Tongngy told The Post.
Based on an NBC report, financial institutions have restructured 268,042 loan accounts as of June 30, which is equivalent to 18 trillion riel or $4.5 billion.
Broken down by sector, tourism represented 24,427 accounts worth $830 million, garments 39,015 accounts ($140 million), construction 22,501 accounts ($710 million), transport and logistics 15,300 accounts ($220 million) and others 168,805 accounts amounting to $2.56 billion.
In Channy, president and group managing directors of ACLEDA Bank Plc told The Post that the bank’s loan restructuring has decreased to $262 million, which is around four per cent of the total loan portfolio as of July 31, from $420 million in 2021 – or eight per cent of the total loan portfolio then.
“Loan restructuring helps customers manage cash flow to support business recovery during stressful periods. We continue to disburse loans to customers although the market price is getting higher.
“As of July 2022, loan growth is around 14 per cent compared to December 2021, due to there being strong demand for loans from customers,” he said.