“I urged the ministry officials to tell the public that if the lending group is illegal – especially if it is foreigners providing the online loan – then our citizens should not repay the loan. If there are any issues, they should report it to the authorities,” he added, via his social media.

He made a clear distinction between licensed microfinance lending and personal loans between individuals, noting that all parties concerned should follow all agreed terms and the law.

In the recent past, the National Bank of Cambodia and the National Police have specifically prohibited online loans which require borrowers to provide their National ID Cards or other legal papers. It noted that such loans have previously led to violence.

Niem Chheng

The Phnom Penh Post

Asia News Network