Cambodia, a life on credit (s)

Audio 19:30

In Cambodia, there is no general aid system for the unemployed or for the most vulnerable (illustration: market in Phnom Penh, June 2020). TANG CHHIN Sothy / AFP

By: Juliette Buchez

In Cambodia, the economic emergency has long overtaken the health emergency caused by Covid-19. As many countries continue to grapple with managing the pandemic, the Southeast Asian kingdom is posting enviable numbers.

Publicity

Officially, only 141 cases have been diagnosed since the start of the pandemic and no deaths are to be deplored.

Less enviable, on the other hand, the latest estimates from the Asian Development Bank which forecasts an economic recession of 5.5% for 2020 in Cambodia. An unprecedented situation, as the country emerged from civil war in 1998 has recorded an average growth of 7.7% for 20 years.

In Cambodia, the microfinance sector has followed the trajectory of this exponential growth. So much so that today, one in eight Cambodians has a debt with a microfinance institution.

Because of the coronavirus, tens of thousands of people are out of business and some are now wondering how to pay their rent or their meals. The concern is mounting because, in this context, how to repay the debt they have contracted?

 "Cambodia, a life on credit (s)", a major report by Juliette Buchez.

(Replay August 10, 2020)

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  • Cambodia
  • Finance
  • Economic crisis
  • Coronavirus

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