Special Loan Package Prepared to Help Banking Sector

The Royal Government of Cambodia is going to use a budget reserve as special loan package to help the banking sector in a bid to restore business environment in Cambodia impacted by COVID-19 pandemic. 

Special loan package of up to US$600 million would be disbursed to specialised banks with low interest rate, said Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen at a press conference at the National Assembly (NA) Palace on Mar. 30, following an NA’s extraordinary session. 

“We are considering to disburse special loan of between US$500 and US$600 million to specialised banks with low interest rate to allow them to continue providing low-interest loans to borrowers for restoring the businesses,” Samdech Techo Hun Sen said. 

The government has so far used reserve funds as special loans with low interest rate to help SME sector and rice sector, he added.

On Mar. 10, Cambodia announced the allocation of US$800 million to US$2 billion to address the adverse impacts on the economy from the COVID-19 outbreak.

The government’s allocation of funds is based on two scenarios of the pandemic, Samdech Techo Hun Sen said, explaining that US$800 million is to be allocated for a period of six months and US$2 billion is to be allocated if the outbreak lasts longer than a year.

Source: Agency Kampuchea Press

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