Logo of Phnom Penh Post newspaper Phnom Penh Post - $250 million MFI fund launched by ADB

$250 million MFI fund launched by ADB

$250 million MFI fund launched by ADB

THE Asian Development Bank has launched a US$250 million microfinance fund to support private sector institutions which lend to the poor.

ADB said in a statement yesterday it would use the “large scale” fund “to partner with financial institutions that actively lend to microfinance institutions in the ADB’s developing member countries”.

Peter Brimble, ADB Cambodia senior country economist, told The Post the outcome for Cambodia was yet to be determined.

“We’re exploring the relevance of this to Cambodia,” he said, adding that he was enthusiastic about the  move.

“This is a sector we want to work on, so we’re excited to hear about a regional fund that allows us to explore the possibility of more Cambodia-specific projects,” he said.

The ADB’s statement said it would support the expansion of lending to MFIs by sharing up to 50 percent of the default risk on underlying MFI loans, “in turn enabling increased provision of financial services to the under served”.

“This will help address the significant unmet demand from the poor for financial services, and provide additional funding for micro-borrowers,” it said.

MOST VIEWED

  • Government hits back at threats to pull EBA, suspend UN seat

    The spokesman for the ruling Cambodian People’s Party (CPP) has said the government is in no way concerned after the European Parliament gave it three months to reverse what it called the “systematic repression of the political opposition”. Ignoring the ultimatum could mean facing

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • Sar Kheng: Sokha requested security

    Interior Minister Sar Kheng on Sunday revealed the story behind the transfer of former opposition party leader Kem Sokha from Trapaing Phlong prison in Tbong Khmum province to his house in the capital. Speaking at the ruling Cambodian People’s Party (CPP) headquarters in Prey

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said