As Cambodia’s banking sector grapples with rising loan defaults and financial stress, Prime Minister Hun Manet has issued a public appeal to banks and microfinance institutions (MFIs) to help ease the burden on one of the most vulnerable groups: returning migrant workers.
A Vulnerable Population at Risk
Thousands of Cambodians who had worked abroad—especially in Thailand, South Korea, and other neighboring countries—are returning home due to global economic instability. Many of them took out loans before migrating and now face repayment challenges with little or no income.
The Prime Minister called this a “moral responsibility” for Cambodia’s financial institutions, urging them to restructure or reschedule loans and evaluate cases with flexibility and empathy.
A Call for Action
The Prime Minister’s message aligns with growing concerns from the World Bank, which recently highlighted a sharp rise in non-performing loans (NPLs) in the banking sector—up to 7.9% by the end of 2024.
To avoid further economic distress, the government is encouraging:
Case-by-case debt restructuring
Payment holidays or grace periods
Collaborative efforts between the National Bank of Cambodia and financial institutions to develop borrower-centered policies
A Path Toward Stability
While the World Bank has recommended stronger oversight and improved credit reporting systems, the Prime Minister’s appeal brings a human dimension to the conversation—recognizing that financial stability must also serve the people, not just the system.
By supporting migrant workers and low-income families now, Cambodia can reduce long-term financial risk and lay the foundation for a more resilient and inclusive recovery.
For ongoing insights into Cambodia’s banking sector, visit Bank-Cambodia.org – your resource for tracking the evolution of finance in the Kingdom.