Decree on Delaying Loan Repayments ?

Post by **Freightdog** » Sat Apr 24, 2021 8:36 pm

Anchor Moy wrote: ↑Sat Apr 24, 2021 8:06 pm
beerlaodrinker wrote: ↑Sat Apr 24, 2021 6:31 pm All debtors should man up and pay up or hand their assets to the banks.
Why should they hold onto assets when endangering savers' funds in the bank by having non-performing loans sat on the banks' books?
I disagree with you. Why should people in debt "man up" when the government has shut down their means of earning a living ?

Indeed. In effect, for many the chance to maintain cash flow has been cut off. Their hands tied. Then, it’s becoming a criminal act to find ways around the problems. There is no ‘man-up’ about it. Quite likely they’ve been manning up for a lot longer than most might imagine, and just getting on with it.

The man-up attitude needs to be saved for the sorts of scumbags who resorted to petty crime and drugs before all this kicked off.

beerlaodrinker · Post by **beerlaodrinker** » Sat Apr 24, 2021 8:39 pm

Freightdog wrote: ↑Sat Apr 24, 2021 8:36 pm
Anchor Moy wrote: ↑Sat Apr 24, 2021 8:06 pm
beerlaodrinker wrote: ↑Sat Apr 24, 2021 6:31 pm All debtors should man up and pay up or hand their assets to the banks.
Why should they hold onto assets when endangering savers' funds in the bank by having non-performing loans sat on the banks' books?
I disagree with you. Why should people in debt "man up" when the government has shut down their means of earning a living ?
Indeed. In effect, for many the chance to maintain cash flow has been cut off. Their hands tied. Then, it’s becoming a criminal act to find ways around the problems. There is no ‘man-up’ about it. Quite likely they’ve been manning up for a lot longer than most might imagine, and just getting on with it.

The man-up attitude needs to be saved for the sorts of scumbags who resorted to petty crime and drugs before all this kicked off.

No, the loan contracts here are all secured. So seize the security, crystallise the loan and have the assets in the hands of more responsible people.

Arget · Post by **Arget** » Sat Apr 24, 2021 8:44 pm

With that attitude and way of thinking you would probably get a senior co-star role in the movie

newkidontheblock · Post by **newkidontheblock** » Sat Apr 24, 2021 8:46 pm

It’s the classic chicken and egg problem.

If the bank calls in loans, it creates an economic hole. If the bank doesn’t call in the loans and goes bankrupt, an even bigger economic hole is created. In Cambodia, money in the bank is not guaranteed.

Ideally, the government should shore up the banks with funding to cover non-performing loans and follow it up with a moratorium on non-performing loans.

Since this is Cambodia, this will never happen.

Second best solution. Banks should hire a loan examiner. Go over all the non-performing loans. Loans made for spurious purchases - motos, cars, gold, jewelry, gambling, etc., should be called in. The bank can use the cash flow to survive. Banks should be actively reaching out to businesses to evaluate their chances for survival. Some businesses won’t make it and should be identified early.

OP - the best solution is to have your friend do a deep dive and evaluate whether his business is truly viable. And then go to bank and convince the bank that it is in their best interest to renegotiate.

Good luck!

Phnom Poon · Post by **Phnom Poon** » Sat Apr 24, 2021 8:50 pm

the problem with banks seizing assets
is what happens when the assets do not cover the loan value?

who on earth would loan money, earning interest, when that money was at risk in some way?
clearly borrowers should offer something more substantial as collateral

a kidney, perhaps
so long as it weighs at least a pound

beerlaodrinker · Post by **beerlaodrinker** » Sat Apr 24, 2021 8:54 pm

Arget wrote: ↑Sat Apr 24, 2021 8:44 pm With that attitude and way of thinking you would probably get a senior co-star role in the movie

Whats wrong with handing over your assets that you have secured a loan on?
They are not yours!

beerlaodrinker · Post by **beerlaodrinker** » Sat Apr 24, 2021 8:55 pm

Phnom Poon wrote: ↑Sat Apr 24, 2021 8:50 pm the problem with banks seizing assets
is what happens when the assets do not cover the loan value?

who on earth would loan money, earning interest, when that money was at risk in some way?
clearly borrowers should offer something more substantial as collateral

a kidney, perhaps
so long as it weighs at least a pound

The assets don't cover the loan, the net loss is crystallised, offset against profit. Everyone moves on. No kidneys involved.

Clemen · Post by **Clemen** » Sat Apr 24, 2021 8:59 pm

beerlaodrinker wrote: ↑Sat Apr 24, 2021 8:35 pm
atst wrote: ↑Sat Apr 24, 2021 8:20 pm The people have been told to stop working why haven't the banks been , argument on both side but a freeze on loan repayments should be implemented.
Term deposit interest should also be freezed, let everyone share the pain is this what you want?
To follow this argument through, the bsnks should switch off ATM'S and freeze deposits.
You are in favour of that also?

Gavin, don’t you ever get tired of being tedious and dull?

beerlaodrinker · Post by **beerlaodrinker** » Sat Apr 24, 2021 9:00 pm

newkidontheblock wrote: ↑Sat Apr 24, 2021 8:46 pm It’s the classic chicken and egg problem.

If the bank calls in loans, it creates an economic hole. If the bank doesn’t call in the loans and goes bankrupt, an even bigger economic hole is created. In Cambodia, money in the bank is not guaranteed.

Ideally, the government should shore up the banks with funding to cover non-performing loans and follow it up with a moratorium on non-performing loans.

Since this is Cambodia, this will never happen.

Second best solution. Banks should hire a loan examiner. Go over all the non-performing loans. Loans made for spurious purchases - motos, cars, gold, jewelry, gambling, etc., should be called in. The bank can use the cash flow to survive. Banks should be actively reaching out to businesses to evaluate their chances for survival. Some businesses won’t make it and should be identified early.

OP - the best solution is to have your friend do a deep dive and evaluate whether his business is truly viable. And then go to bank and convince the bank that it is in their best interest to renegotiate.

Good luck!

Excellent post, with one further point: the Cambodian legal system has never been challenged with multiple bank failures simultaneously. The Mekong Bank bankruptcy alone has been dragging on without any great progress for nearly a year. Image dozens of them. Unthinkable.
Its simply better to foreclose and repossess early.

Anchor Moy · Post by **Anchor Moy** » Sat Apr 24, 2021 9:12 pm

newkidontheblock wrote: ↑Sat Apr 24, 2021 8:46 pm
OP - the best solution is to have your friend do a deep dive and evaluate whether his business is truly viable. And then go to bank and convince the bank that it is in their best interest to renegotiate.

Good luck!

No, none of his businesses are viable because he needs tourist trade. When there were no more foreigners arriving, then he switched to local Khmer tourist trade. Now there are no more tourists in any shape and size due to lockdown, so he's got no more business at all. Locals have no money to spend either. It's a sad state of affairs.

Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Re: Decree on Delaying Loan Repayments ?

Who is online

Register/Login to CEO with your Social Media Account: