Helping hand: PM asks banks to ease financial burden on soldiers and displaced citizens

Helping hand: PM asks banks to ease financial burden on soldiers and displaced citizens

Synopsis: Hours after the ceasefire, Thai troops reportedly detained Cambodian soldiers at the disputed border. Two are feared dead, and one escaped. Cambodia calls it a serious truce violation and demands their release.

Prime Minister Hun Manet has called on the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) to consider easing financial pressures on members of the armed forces and civilians affected by the recent Cambodia-Thailand border conflict.

In a message posted on his official Facebook page on Tuesday night, the Prime Minister urged financial institutions to join national recovery efforts by supporting soldiers who were injured or disabled while defending the country, the families of those who died in the line of duty, and citizens displaced by the fighting.

“The recent clashes between the Cambodian and Thai forces resulted in a number of casualties among our troops, with some soldiers killed, injured, or left disabled,” he stated, adding, “Tens of thousands of civilians were also forced to flee their homes and lost the ability to earn a living.”

“To further mobilise solidarity in our recovery process, I would like to call on the Association of Banks in Cambodia and the Cambodia Microfinance Association to consider the possibility of helping to alleviate the financial burdens on our armed forces who protected national sovereignty, as well as on the families of deceased soldiers, injured or disabled personnel, and displaced citizens,” he added.

Although the conflict has ended, many families are still coping with the aftermath, recovering from physical, emotional, and financial losses.

Mr Hun Manet’s appeal is seen as a call for coordinated support across sectors to ensure those most affected can rebuild their lives with dignity.

Industry observers say the banking and microfinance sectors could play a crucial role by offering loan relief measures, flexible repayment terms, or other targeted support.

In response to an appeal by Prime Minister Hun Manet and in the spirit of humanitarian solidarity, NBC has issued a directive urging financial institutions to ease the burden on citizens and soldiers affected by the recent Cambodia-Thailand border conflict.

The directive, released and obtained by Khmer Times on Wednesday, was developed in consultation with ABC and CMA. It aims to provide immediate financial relief to displaced citizens and frontline military personnel, whose livelihoods and stability have been disrupted by the border tensions.

For affected civilians, NBC has called on all banking and financial institutions to waive fees and penalties on existing loans and to suspend interest and principal payments, effective immediately until October 31. These institutions are instructed not to capitalise interest on the loan principal during this period.

Meanwhile, greater concessions are recommended for members of the armed forces who were directly involved in battlefield operations. The directive outlines a six-month window – ending January 31, 2026 – during which military customers should be granted full waivers on loan fees and interest obligations, along with deferred principal repayments.

In recognition of their sacrifice, NBC has encouraged institutions to cancel loans of up to 10 million riels for soldiers who have been left disabled by the conflict. Moreover, loan forgiveness of up to 80 million riels should be extended to the families of those who lost their lives in the line of duty.

The NBC directive also requires all banks and microfinance institutions to continue offering credit restructuring options in accordance with existing regulations for all other borrowers. In addition, financial institutions are encouraged to offer further preferential terms, where feasible, to returning Cambodian migrant workers and soldiers who have recently participated in active combat.

NBC stressed that the success of this initiative depends on the proactive and compassionate engagement of all financial sector stakeholders. The central bank expressed confidence that the sector will play a crucial role in helping the nation recover and rebuild in the wake of the border conflict.

On the same day, ABC and CMA have pledged full support for the implementation of emergency financial relief measures aimed at assisting citizens and armed forces impacted by the Cambodia-Thailand border conflict.

The joint statement, obtained by Khmer Times, follows the directive issued by the National Bank of Cambodia on July 30, 2025, which outlines a series of measures to alleviate the burden on displaced civilians, wounded or disabled soldiers, families of fallen troops, and other affected groups.

In a unified response to the appeal of Prime Minister Hun Manet, both associations affirmed their commitment to ensuring that their member institutions carry out the directive to the best of their abilities. This effort, they said, is rooted in a deep sense of national solidarity, compassion, and responsibility during a time of difficulty for many Cambodians.

“The ABC and CMA, along with all member institutions, firmly believe that their collective contribution and support reflect the spirit of unity and patriotism that defines Cambodia,” the statement read. “It is also a demonstration of the Cambodian people’s enduring culture of compassion and mutual aid.”

The two associations also extended their gratitude to the Royal Government, particularly to Senate President Hun Sen and Prime Minister Hun Manet, as well as to the armed forces and national police at all levels, for their tireless efforts and sacrifices in maintaining peace and protecting national sovereignty.

The financial sector’s commitment, the associations noted, underscores its crucial role in helping the country recover from the impacts of the conflict while standing shoulder-to-shoulder with the people in times of need.

Meanwhile, banks and MFIs have announced the cancellation of all outstanding debts owed by fallen soldiers and their co-borrowers who served in the recent Cambodia-Thailand border conflict, demonstrating a strong spirit of solidarity and humanitarian commitment.

The decision follows the appeal made both by Mr Hun Manet and the directive issued by the NBC, under the leadership of NBC Governor General Chea Serey.

In statements released on Wednesday, several major banks and MFIs, including ACLEDA Bank, Wing Bank, FTB Bank, KB Prasac, AMRET, ARDB, and others, confirmed their full cooperation with the NBC to carry out what they described as an important national mission.

On Tuesday, ABA Bank contributed $1 million in support of the relief efforts for those affected by the border conflict. “Our contribution will support the ongoing relief efforts of the government to help those affected, including children, elders, and vulnerable families,” the bank said.

“The initiative reflects our strong support for the armed forces who defended the nation’s sovereignty during the crisis,” the institutions stated. “We are committed to working closely with the National Bank of Cambodia to ensure the effective implementation of this relief measure. We express our deepest respect and gratitude to the brave soldiers who made the ultimate sacrifice in defence of our territorial integrity.”

This action aligns with similar efforts by financial institutions across the country, showcasing the financial sector’s unified response to the government’s call for national unity and shared responsibility during a critical period.

Speaking to Khmer Times, finance specialist Nget Chou raised important questions about the role of banks and financial institutions in supporting families affected by the Cambodia-Thailand border conflict.

“When considering the sacrifices made by fallen soldiers in defence of the nation, it is only fair that financial institutions write off debts owed by their families,” Chou said. “This act of debt forgiveness would significantly ease the financial hardship faced by those who have lost both loved ones and their household income.”

He emphasised that such measures would not pose a major financial burden on the banking sector. “The number of families affected is very small relative to the millions of customers served by these institutions. Protecting these families aligns with the social responsibility of banks, and failing to do so could damage the institutions’ reputations and long-term stability,” he added.

Chou’s remarks highlight the broader conversation around how Cambodia’s financial sector can play a constructive role in post-conflict recovery.

Khmer Times