BANKING AND FINANCE
Interest Rate Ceiling on Certain Loans
Prakas № B7-017-109 PK of the National Bank of Cambodia, dated 13 March 2017
This prakas, which is effective from 13 March 2017, sets interest rate ceiling on loans provided by microfinance deposit-taking institutions, microfinance institutions, and rural credit operators under the National Bank of Cambodia’s supervisory authority. The stated objective of this prakas is to protect consumers from excessive interest rates and to promote the use of affordable loans.
Under this prakas, the impacted institutions may not set interest rates exceeding 18% (eighteen percent) per annum for any maturity of loan. Such interest rate ceiling is effective for new loan contracts, including restructured loans and refinancing, executed from 01 April 2017.
Control of Advertisement Activities of Mobile Phone Companies
Notification № 0276, dated 15 February 2017
Under Notification No. 0276, the Telecommunication Regulator of Cambodia (“TRC”) notes that there have been a number of advertisement activities carried out by mobile phone companies which were not in compliance with applicable laws and the principle of good faith competition as previously instituted by the TRC.
The purpose of the notification is to re-affirm the TRC’s previous instructions to all mobile phone companies:
- Advertisements by mobile phone companies, in any form, must be pre-approved by the TRC. The TRC will review and make its decision on advertisement applications within ten working days;
- All mobile phone companies must immediately halt advertising in whatever form (web based, social media, logos etc.), about exchanges or promotions that misleads customers or sells below the authorized cost base ; and
- All mobile phone companies must now submit a report to the TRC every six months (on 31 January and 31 July of each year) on the cost base for on-net calls.
The notification further outlines sanctions that the TRC will impose on companies that fail to comply with these regulations. These sanctions range from prohibiting the importation of equipment to suspending their license, permit and certificate until the non-compliant activities are rectified.
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