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PHNOM PENH - Deep levels of household debt in Cambodia mean that many garment workers see finding the money for repayments as a bigger threat than COVID-19.

Low paid workers in Cambodia often make use of microfinance institutions (MFI) and it is feared that thousands of laid-off garment workers are reportedly currently struggling to pay back debt.

Many MFI loans are collateralised by land titles, leaving millions at risk of losing their homes and property should they default. Those forced to sell their land face abject poverty.

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