"Cambodian Microfinance Group Rejects NGOs’ Call For Debt Relief, as Workers Struggle Amid Coronavirus Shutdowns", 29 April 2020

An organization set up to support Cambodia’s microfinance sector has rejected a call by NGOs for a blanket suspension of the  repayment of loans made to Cambodians hard hit by recent business shutdowns amid the COVID-19 pandemic, saying requests for relief must be considered on a case-by-case basis.

…, 135 Cambodian community organizations and other groups have asked the Cambodia Microfinance Association (CMA) to halt for three months demands for repayment by the more than two and a half million Cambodians who now hold microloans.

These demands have now put the livelihood and land security of loan holders at risk, the letter says.

“Millions of workers in the tourist, garment and construction sector are facing layoffs and loss of wages,” the letter says, adding that government efforts to subsidize losses have largely failed to meet workers’ needs…

In an … statement, the CMA said however that requests for suspension will be considered only on an individual basis.

“We will suspend debt payments upon the client’s request to the MFI,” CMA deputy president Bun Mony told ... “We do not force them to sell their land under the present circumstances because we know that they are facing hardships. Additionally, we won’t require them to pay late fees.”

…, Vorn Pov—president of the Independent Democracy of Informal Economy Association (IDEA), a group representing small business owners—said however that only a few banks and MFIs have agreed to suspend payments of mortgage and interest for the requested three-month period…