PHNOM PENH – Measures to alleviate loan repayment concerns in Cambodia are failing, says Human Rights Watch, as borrowers are increasingly being forced to sell collateralized assets such as land to make payment.
Though there’s been numerous calls from native stakeholders for microfinance institutes (MFIs) and banks to loosen the terms of their loan agreements in order to help factory staff struggling through the coronavirus pandemic, efforts have proven insufficient as people teeter on the poverty line.
“The Cambodian government should immediately order a freeze on debt collection and interest accruals of those harmed by the pandemic, and hold financial institutions that fail to comply accountable,” says HRW’s deputy Asia director, Phil Robertson.
