PM calls for repayment reprieve for suspended garment workers

                           A group of all female garment worker leave their factory after work.  KT/Pann Rachana

Speaking at the inauguration ceremony of National Road 55 in the Pursat province, the request was made after many garment factories have suspended production because of impaired supply chains. The raw material shortages have caused havoc for the garment sector and resulted in many workers receiving partial or suspended salaries.

“Micro-financial institutions and banks should suspend either total loan payments or the interest component of these repayments for garment workers who are in financial difficulties. They face job suspension so should be helped with some form of loan suspension too,” Mr Hun Sen said.

The suspension is to ease difficulties of garment workers during this hard time, Mr Hun Sen added.

Although a cargo of 60 containers filled with raw materials are due to arrive in the the Kingdom on Monday, temporarily easing the shortage caused by the virus halting the the supply chain from China, Ministry of Labour spokesman, Heng Sour, said recently that there could still be disruption ahead.

The Association of Banks in Cambodia and the Cambodian Microfinance Association have expressed strong support for the measure and also requested that banks and financial institutions continue to provide loans to small and medium enterprises (SMEs) affected by the virus.

The statement continued, “Banks and financial institutions should exercise flexibility in dealing with loan repayment issues for customers affected by COVID -19. They should also continue to take necessary actions to protect their employees to ensure clients can continue to depend on the reliability and sustainability of banking services.”

Some 2.1 million Cambodians use the services of a microfinance institution, borrowing a combined $7.5 billion in 2019, almost a 30 percent increase on the previous year, according to the Cambodian Microfinance Association. Source from Khmertimes.