what will happen ? not looking good

phuketrichard · Post by **phuketrichard** » Fri Nov 10, 2023 2:44 pm

Consumers racked up a record $14.3 billion in debt in the third quarter, or about $870 for every man, woman and child in the Kingdom. More than half is tied to mortgages in the troubled real estate sector. The World Bank suggests such high debt levels are risky, and insiders say several banks are struggling under the weight of bad loans.

Cambodia’s consumer credit sector continued to reach new heights in the third quarter of 2023, with the total outstanding loan balance swelling to $14.93 billion. This growth, however, comes hand-in-hand with a 20% hike in overdue payments from July to September this year totaling 4.71%, highlighting potential risks looming in the horizon of the credit market, according to data from Credit Bureau of Cambodia.

Consumer credit is defined as personal debt taken and split into three sectors personal finance, mortgage loans, and credit cards. The overall loan balance saw a modest 1.00% increase from the previous quarter, affirming the continued confidence of Cambodian consumers in leveraging credit facilities. The number of consumer loan accounts also witnessed a 1.78% increase, bringing the total to approximately 1.68 million across the country.

https://cambodiainvestmentreview.com/20 ... ts-for-q3/

RightSaidFred · Post by **RightSaidFred** » Tue Nov 14, 2023 10:44 am

Richard love your posts. Very informative.
Is Cambodia heading the same way as Sri Lanka? There is very little manufacturing in the country. Tourism is the mainstay. The USD also makes it a more expensive place for tourists compared to Thailand, Vietnam. Also, everyone lives for today and does not think of how they will meet their committments tomorrow (may be a result of the genocide).

Kenr · Post by **Kenr** » Tue Nov 14, 2023 11:55 am

$870 for every man, woman, and child is peanuts compared to other countries.

John Bingham · Post by **John Bingham** » Tue Nov 14, 2023 12:23 pm

Is Cambodia heading the same way as Sri Lanka?

RightSaidFred wrote: ↑Tue Nov 14, 2023 10:44 am There is very little manufacturing in the country. Tourism is the mainstay.

That's not at all true. Manufacturing and agriculture are far bigger sectors. Tourism contributed about 20% of GDP in 2019, it's only around 4% now.