More than 20 Cambodian microfinance institutions (MFIs) have announced that they will completely write off any debts owed by fallen soldiers. They have also introduced partial debt reduction measures for soldiers who were wounded or disabled in the defence of the Kingdom from Thai incursions, according to a spokesperson for the Cambodia Microfinance Association (CMA).
On July 29, Prime Minister Hun Manet called on banks and microfinance institutions across the country to consider full or partial debt forgiveness for soldiers who were killed, disabled or wounded defending Cambodia’s territorial integrity since July 24.
CMA spokesperson Kang Tongny told The Post on July 31 that to date, more than 20 MFIs had publicly announced full debt cancellation for fallen soldiers. In addition, they have established policies to reduce the debt burdens of soldiers who were disabled or injured as a result of the conflict with Thai military forces.
He added that, in reality, even more microfinance institutions are participating in this national solidarity effort in response to the government’s and CMA’s appeal. However, he noted that many smaller institutions have not yet made public announcements or do not have the same level of publicity as the larger institutions, who have their own media channels.
“We are all participating. Its just that most of the microfinance institutions are small in scale, so their announcements are not as widely circulated. As of now, more than 20 MFIs have declared their participation in writing off debts for fallen soldiers. Beyond that, they are also supporting other soldiers,” he said.
“Participating in this national solidarity effort increases the costs for each institution and causes a loss of revenue. But in this difficult situation, our institutions cannot just stand by and watch our clients suffer. They must contribute to easing the burden according to each institution’s capacity,” he added.
Following the “Measures to Alleviate the Financial Burden for People Affected by the Cambodia–Thailand Border Conflict” guidelines issued by the National Bank of Cambodia (NBC) on July 30, numerous banks and MFIs have announced decisions to reduce or entirely cancel debts for injured, disabled and fallen soldiers involved in the war with Thailand.
Among the participating MFIs are Amret, LOLC, Khema Microfinance and East Microfinance, while participating banks include Canadia Bank, ACLEDA Bank, Chip Mong Bank, Wing Bank, KB Prasac Bank, ARDB Bank, FTB, ABA Bank, Vattanac Bank, Cambodia Post Bank, HH Bank, Hattha Bank, Doun Penh Specialized Bank and SME Bank, Prince Bank Plc., among others.
