Hun Sen Urges Lenders to Seize Property of Loan-Payment Refuseniks

Prime Minister Hun Sen said he encouraged banks and microlenders to confiscate property from any borrowers who participate in debt repayment refusal movements and purposefully fail to pay back loans.

One observer questioned how financial institutions would know whether a borrower was making a political statement or merely could not afford to make loan payments, especially during the global economic downturn.

While announcing a $25 million per month package to assist some of the nation’s poorest families, Hun Sen on Wednesday said that while he generally did not want to see debtors face punishments for being unable to pay, he encouraged banks and microfinance institutions (MFIs) to file court complaints in order to confiscate property if they believed a debtor was intentionally avoiding repayments, or inciting others not to repay their loans.

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