Cambodian SME leader calls for credit relief for pandemic-hit borrowers
Banks have told earlier forums that a poor credit record does not automatically disqualify an applicant, FASMEC president Te Taing Por acknowledged.
Businesses that missed repayments during Covid-19 should receive more flexible consideration when seeking fresh loans, Cambodian SME representative Te Taing Por said at a November 10 press conference. He asked lenders to help entrepreneurs with minor credit difficulties regain access to funding.
Por, who heads the Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC), suggested replacing what he called a three-year penalty period with three or six months. This would give affected borrowers an earlier chance to show that their repayment performance had improved.
He also acknowledged earlier explanations from the Agricultural and Rural Development Bank and commercial lenders that adverse Credit Bureau Cambodia (CBC) references were not an automatic bar to borrowing. FASMEC secretary-general Chhin Ket said CBC supplied repayment data for lenders to assess, while rejected applications could reflect other lending conditions.
Borrowers should bring individual financing problems to FASMEC, Por said. The federation would take them up with the relevant institutions, including the National Bank of Cambodia where appropriate, and would not collect commissions for facilitating loans.
FASMEC was also coordinating with lenders and provincial authorities on workshops covering all 25 provinces and the capital, Por said. These would explain application paperwork, borrowing conditions and available assistance. He declined to give a single SME interest rate, saying pricing depended on each institution and its assessment of the borrower.
