VINAYA LAW FIRM

Banking: Proclamation on the promotion of credit through the telephone network

Date of publication: 06-10-2018


Category: Legal updates


Audience: All


Proclamation on the promotion of credit through the telephone network

On 2 October 2018, the National Bank of Cambodia (hereinafter the "NBC") issued an announcement on the promotion of credit through the telephone network.

1. Concern about the promotion of credit through the telephone network

        The NBC expressed its concern on the recent increase, in Phnom Penh or in the provinces of the Kingdom of Cambodia, of messages sent through the telephone network and advertising on very quick loans granted without the requirement to provide documents or collateral.

2. Information to the public on the unlawfulness of this action

        In this matter, the NBC addressed a reminder for the public that the companies or individuals have not received any permission from the NBC to grant such loans. Therefore, the promotion of the said loans is deemed illegal, and the NBC warns the public to avoid using unofficial loan in order to limits risk of being deceived by the lenders and to limit other unforeseen risks.