Govt Measures to Relieve Economic Strain on Buyers of Real Estate during COVID-19
Given the financial hardship suffered by many as a result of COVID-19, the Ministry of Economy and Finance and the National Bank of Cambodia (collectively called “Government”) issued a joint Prakas to relieve some of the economic strain felt by those with existing commitments in paying off real estate purchases in Cambodia. The Government has requested and encouraged all real estate development companies, especially Boreys and co-owned buildings developers, to take into consideration the following:
- consider reducing the payment terms for installments based on the actual ability of clients to pay;
- waive penalties for late payments for Boreys and co-owned building buyers;
- refrain from charging interest or additional penalties for late installment payments;
- implement policies for clients regarding the term for installment payments for properties in Boreys and co-owned buildings; and
- execute these policies until the end of March 2022.
The government encourages all real estate development companies in Cambodia to take the above mentioned into account in order to support and reduce the financial burden of the citizens during the ongoing COVID-19 pandemic in Cambodia.
This alert is for general information only and is not a substitute for legal advice.