Cambodia’s loan demand rose by 20.7% in H1, 28.8% of which from the construction and property sector

Bank loan demand in Cambodia rose by 20.7% to US$26.7 billion during the first half of 2020, of which construction and real estate sector accounted for 28.8%, according to the biannual report of the National Bank of Cambodia.

The report continues that the loan has been given to key sectors and among which personal mortgage accounted for 11.6%, property loan 8%, and construction loan 9.2%.

Despite credit growth, the construction sector is likely to decline due to the decrease in demand, the completion of some construction projects, and in particular, the decline in 14% decline in the construction material import due to COVID-19 pandemic, says the report.

NBC’s governor Chea Chanto said at the NBC’s biannual meeting that though COVID-19 pandemic is severely threatening the economic growth, the banking sector remains strong and actively contribute to the economy.

“In the banking sector, main risks arising from the prolonged COVID-19 pandemic include a decline in the incomes of people and businesses which can lead to a drop in the growth of loans and deposits, a fall in construction and real estate, and a slowdown in foreign capital inflows into the banking sector,” H.E. Chea is quoted in Xinhua News.

The same report also stated the banking sectors asset grew by 17% to US$44.6 billion in the first half of 2020, indicating a positivity that the banking sector in Cambodia is sustainably growing despite the pandemic.(This news came from Construction-Property.com)