Cambodia Investment Review
Cambodia’s banking and financial institutions have been instructed to cancel debts of up to 80 million riel (approximately $19,967) for families of soldiers killed in the recent Cambodia–Thailand border conflict, in a sweeping set of relief measures announced by the National Bank of Cambodia (NBC).
The directive, issued on July 30, 2025, also mandates a three-month suspension of interest and principal payments for displaced civilians and a six-month suspension for active-duty military personnel directly engaged in combat. All related credit fees and penalties are to be waived across the board.
This intervention by the NBC comes in response to an appeal from Prime Minister Hun Manet, who called for immediate action to alleviate the financial stress caused by the conflict. The move underscores the government’s efforts to protect vulnerable groups affected by the crisis.
Industry Responds in Support
The Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) swiftly issued a joint statement pledging their full backing of the NBC’s directive and the Prime Minister’s call.
“All member institutions are committed to implementing these measures to the best of their ability,” the associations stated, adding that the effort embodies “the spirit of national unity, patriotism, and the culture of compassion that defines the Cambodian people.”
The ABC and CMA, representing both commercial banks and microfinance institutions nationwide, highlighted their shared commitment to supporting armed forces personnel, families of fallen soldiers, and displaced civilians—many of whom face immediate financial hardship due to the disruption.
Broader Relief Efforts Underway
The announcement follows similar humanitarian actions from the private sector. Earlier this week, ABA Bank committed $1 million to support citizens affected by the conflict, channeled through the Cambodian Red Cross (CRC) and the Techo Youth Doctor Association (TYDA). The donation will fund emergency food supplies, shelter, medical care, and other urgent needs for displaced families.
Such responses from Cambodia’s financial sector reflect a growing recognition of the private sector’s role in national crisis management and social stability. According to the World Bank, the country’s financial system has become increasingly robust, with total credit outstanding surpassing $50 billion—meaning these targeted relief measures may have significant reach and impact.
A Message of Solidarity
In their joint release, the ABC and CMA extended gratitude to the Royal Government, especially former Prime Minister Hun Sen and Prime Minister Hun Manet, for their leadership and commitment to peace and the protection of Cambodia’s territorial integrity.
They also recognized the sacrifices made by Cambodia’s armed forces, police, and military personnel, calling their service an “expression of national resilience and unity.”
The NBC’s directive, alongside support from key financial players, forms part of a coordinated national response to one of the most serious regional escalations in recent years. Observers note that such efforts may help to stabilize household finances and maintain consumer confidence during uncertain times.
