Cambodia & Economy: Royal Government cuts loan rates by half for workers

The Royal Government has signed agreements with commercial banks to provide more loans to workers at more affordable interest rates, a move welcomed by analysts.

Under the auspices of Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet, the Ministry of Labour and Vocational Training on Friday signed agreements with eight commercial banks to provide loans to workers at an interest rate of only 8.5% per annum

Dr Ky Sereyvath, an economist and director of the Centre for China Studies at the Royal Academy of Cambodia, said the agreement had cut the interest rate by more than half.

“The exceptional loan package will allow workers to settle their debts and better manage their income to rebuild their family's economy,” he added.

Mr Sam Soeun, president of the Federation of Labour Rights Unions, welcomed the move, which he said would help ease the financial burden on workers

On behalf of his union and the workers, he thanked the government for its timely support in addressing the emerging challenges faced by the workers.

The eight model banks are KB Bank PRASAC Plc, Woori Bank (Cambodia) Plc, Cambodia Post Bank Plc, Canadia Bank, ACLEDA Bank Plc, ABA Bank, Wing Bank (Cambodia) Plc, SBI Ly Hour Bank Plc.