Cambodia issues decree to facilitate loans for investors

The Cambodian government has issued a sub-decree allowing investors to use long-term leases and rights to economic land concessions on state properties as collateral when applying for bank loans, local media reported Saturday.

According to a copy of the sub-decree signed by Prime Minister Hun Sen, investors and companies are also able to transfer these concessions or long-term leases to other interested parties, the Cambodia Daily newspaper said.

"Investors have the right to pawn or transfer long-term leases or economic land concessions including buildings and other properties that they have invested in on the land," the sub-decree stated.

The sub-decree acts as a safety net for land concession holders by allowing them to sell the rights to concessions that they can no longer afford to operate, Chan Tong Yves, secretary of state for the Ministry of Agriculture, was quoted by the newspaper as saying.

In Channy, president of Acleda Bank, said that although the new sub-decree could help investors in applying for loans, other documents proving the investors' capital are required.

Source: Xinhua