Paris Peace Accords 23 Oct. 1991

Tuesday, February 11, 2014

Loans at MFIs grow to surpass $1 billion

Loans at MFIs grow to surpass $1 billion
The pool of outstanding loans held by Cambodia’s microfinance institutions grew to more than $1.17 billion in 2013, marking a 44 per cent industry-wide increase from 2012, when the figure stood at $813 million, according to new data from the National Bank of Cambodia. 

The industry statistics, which take into account the books of all 38 microfinance providers in the country, were detailed in the bank’s annual report for 2013.

Consumer deposits grew more than 61 per cent to reach $364 million last year, up from $226 million in 2012. Non-performing loans – loans that are either in or close to being in default – remained steady, accounting for less than one per cent.

Bun Mony, president of the Cambodia Microfinance Association, said the results were not surprising, reflecting an average year-on-year growth range of 40 to 50 per cent for the industry.

“Increasing loan size for existing customers and access to microfinance products in rural areas would be some reasons for the year-on-year growth.”

The CMA president added that while customers engaged in agricultural businesses remained the main market for microfinance companies, small shops and street vendors are also emerging as a larger market.


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