Government Reduces Loan Interest Rate by Half for Workers

The Royal Government has signed deals with commercial banks to provide more loans with more affordable interest to workers, a move applauded by analysts. Under the auspice of Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet, the Ministry of Labour and Vocational Training on Aug. 9 signed memoranda of understanding with eight commercial banks to provide loans to workers with only an 8.5 percent interest rate per year. Dr. Ky Sereyvath, an economist and Director of the Centre for China Studies at the Royal Academy of Cambodia, noted that the agreement has reduced the interest rate by more than half. The exceptional loan package will allow workers to sort out their debts and better manage their income to rebuild their family's economy, he added. Mr. Sam Soeun, President of the Union Federation for Labour Rights, appreciated the move, which he thinks will help unload the financial burden on workers. On behalf of his union as well as the workers, he thanked the government for its timely s upport in addressing the emerging challenges faced by the workers. The eight model banks include 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. Source: Agence Kampuchea Presse