Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Amret MFI gets $10M loan to aid SME reach

Amret MFI gets $10M loan to aid SME reach

Amret MFI gets $10M loan to aid SME reach

Amret Microfinance received a $10 million boost yesterday by a loan from German development bank KfW, according to a joint statement from the finance institutions.

Chea Phalarin, chief executive officer of Amret Microfinance Institution, said yesterday that the new loan – equal to nearly double its profit for 2013 – will be used to increase access to financing for Cambodia’s smallest businesses.

“[The new loan] will provide possibilities for Amret to expand its activities in further providing loans to citizens for business operation and for cultivation purposes in the coming rainy season,” he said in a statement yesterday.

Amret’s outstanding loans total is currently $245 million, according to the release. One of a handful of MFI’s licensed to take deposits, the former credit NGO currently holds $113 million in client savings.

Gerald Lazer, director at KfW, said that though the number of MFIs has grown significantly in Cambodia in recent times, access to finance is still a problem in most rural areas.

“By providing this funding, KfW wants to be part of the effort of enhancing access to financial services via an increased outreach and a diversified product range,” he said in a statement yesterday.

According to Lazer, only 8 per cent of all households use formal financial services and less than 43 per cent of micro- and small- to medium-size enterprises have a bank account.

Industry-wide, MFI loans outstanding at the end of the first quarter this year reached $1.51 billion, up from $1.32 billion at the end of 2013.

RECOMMENDED STORIES

  • Breaking: PM says prominent human rights NGO ‘must close’

    Prime Minister Hun Sen has instructed the Interior Ministry to investigate the Cambodian Center for Human Rights (CCHR) and potentially close it “because they follow foreigners”, appearing to link the rights group to the opposition Cambodia National Rescue Party's purported “revolution”. The CNRP - the

  • Rainsy and Sokha ‘would already be dead’: PM

    Prime Minister Hun Sen on Sunday appeared to suggest he would have assassinated opposition leaders Sam Rainsy and Kem Sokha had he known they were promising to “organise a new government” in the aftermath of the disputed 2013 national elections. In a clip from his speech

  • Massive ceremony at Angkor Wat will show ‘Cambodia not in anarchy’: PM

    Government officials, thousands of monks and Prime Minister Hun Sen himself will hold a massive prayer ceremony at Angkor Wat in early December to highlight the Kingdom’s continuing “peace, independence and political stability”, a spectacle observers said was designed to disguise the deterioration of

  • PM tells workers CNRP is to blame for any sanctions

    In a speech to workers yesterday, Prime Minister Hun Sen pinned the blame for any damage inflicted on Cambodia’s garment industry by potential economic sanctions squarely on the opposition party. “You must remember clearly that if the purchase orders are reduced, it is all