Logo of Phnom Penh Post newspaper Phnom Penh Post - Advanced Bank of Asia loans MFI $2m

Advanced Bank of Asia loans MFI $2m

Advanced Bank of Asia loans MFI $2m

The Advanced Bank of Asia (ABA) last week loaned PRASAC Microfinance Institution US$2 million to support the rapid growth of the microfinance loan industry.

The agreement was made on May 23 between Sim Senacheert, CEO of PRASAC, and Askhat Azhikhanov, Deputy Chief Executive Officer of ABA Bank, according to the statement from PRASAC.

The domestic loan was chosen to “diversify our funding sources” because of a large reliance on overseas capital which moves many of the jobs created away from the Kingdom Sim told the Post on Monday.

The demand for microfinance loans is increasing, and PRASAC is finding the increased demand hard to meet, which is the driving reason behind the decision to get the loan, he said.

Receiving loans from abroad takes time and the process is complicated compared to getting a domestic loan.

The loan had a higher interest rate compared to a foreign fund, but it is “easy and fast” he said.

So far about seven or eight Microfinance Institutions have received loans from local banks worth between US$30-$40 million.

“It is still small, but it is a successful achievement for us” said Bun Mony, chairman of Cambodia’s Microfinance Association and CEO of Sathapana Microfinance Institution.

Sathapana Microfinance Institution has received $7 million from commercial banks since last year.

“Now, I am negotiating with many other banks” said Bun Mony.

PRASAC has been received loans from three local banks worth close to $14 million and now is in discussion with others, said Sim Senacheert.

PRASAC’s total loan portfolio was more than $150 million as of December 2011 and there were 125,127 credit clients.

To contact the reporter on this story: May Kunmakara at [email protected]

MOST VIEWED

  • Negotiations on EBA being held

    In an effort to defuse tensions, a senior government official said Cambodia is negotiating with the European Union (EU) on the Everything But Arms (EBA) trade deal, which allows the Kingdom to export goods to the 28-member bloc tariff-free. The EU notified Cambodia on October 5

  • Ministers to tackle sea pollutants

    Preah Sihanouk provincial authorities and members of local communities have collected 77 tonnes of water hyacinth at a Sihanoukville beach, Preah Sihanouk Provincial Hall spokesperson Or Saroeun said. He told The Post yesterday that the aquatic weeds had been floating along some of the province’s

  • Chinese police escort deported scam suspects

    Ninety-one Chinese nationals accused of extorting money from victims in a Voice over Internet Protocol (VoIP) scam were deported from Phnom Penh International Airport on Monday under the escort of 182 Chinese police personnel. General Department of Immigration head of investigations Ouk Hay Seila told reporters

  • Sam Rainsy, government group set to clash at IPU Geneva meet?

    Opposition figure Sam Rainsy has been invited to speak at the General Assembly of the Inter-Parliamentary Union (IPU) in Geneva, according to a former Cambodia National Rescue Party (CNRP) lawmaker. A government delegation is also set to attend the meeting, a National Assembly press release