In response to the February 12 article "Kingdom's Banks at Risk: IMF", The Phnom Penh Post regrets that it identified Vattanac Bank as being at risk from nonperforming loans based on anonymous industry sources. In talks with bank officials following publication, it became evident to The Post these statements were not accurate, as the bank had zero nonperforming loans as of December 31, 2008.
Subsequently, The Post has consulted with key banking executives in Cambodia and examined World Bank reports and come to a view Vattanac Bank is not one of the "two large banks" mentioned in its report. At the end of the financial year 2008, Vattanac Bank's deposits and outstanding loans amounted to US$152,887,637 and $103,887,297, respectively.
Deposits increased by 49 percent while loan growth was 27 percent in 2008. The bank's lending to the real estate sector was 16.03 percent as of December 31, 2008. We regret that we were unable to publish the bank's viewpoint in the timely manner we had hoped for.