Total lending from the Kingdom’s 23 microfinance institutions increased by 33 percent in 2010, while the average non-performing loan (NPL) rate edged downwards, according to data from the Cambodia Microfinance Association.

Some US$647 million was extended by the MFIs – including ACELDA Bank’s small loans – up from $485 million the year previously. CMA chairman Chea Phalarin said an improving domestic economy meant lending had increased dramatically, adding the financial sector suffered a severe setback during the height of the crisis in 2009.

“Business activities came back strong in mid-2010,” he said.

Chea Phalarin is also president Amret, the Kingdom’s largest MFI.  Amret saw lending increase more than 25 percent, with some 238,535 total borrowers in Cambodia. Its non-performing loan rate declined to 0.63 percent, from 3.7 percent.

Sathapana – the third largest MFI – saw lending increase by 45 percent last year, to $57.88 million, according to its chairman, Bun Mony.

Its NPL rate declined from 2 percent in 2009, to 0.93 percent during last year. Bun Mony targeted 50 percent growth in lending during 2011.

Hattha Kakeskar general director Hout Ieng Tong also claimed lending had surged, and NPL rates had improved.

“We had complete success with our business,” he said.

Lending increased 45 percent in 2010 over the year previous, while its NPL rate dropped from 2.5 percent to 0.9 percent. It had extended about $44 million to some 50,000 borrowers at the end of last year.

MFIs holding deposit licences saw increased deposits.

Amret claimed $15 million from 21,600 depositors – up from $3.5 million in 2009. Hattha Kakeskar topped $5 million from 30,000 depositors, and Sathapana, which began receiving deposits early last year, reached $15 million.