Logo of Phnom Penh Post newspaper Phnom Penh Post - CMA issues code of conduct for local MFIs

CMA issues code of conduct for local MFIs

Party flags flutter atop a CPP billboard in front a microfinance office in Kandal province’s Takhmao town yesterday.
Party flags flutter atop a CPP billboard in front a microfinance office in Kandal province’s Takhmao town yesterday. Pha Lina

CMA issues code of conduct for local MFIs

The Cambodia Microfinance Association (CMA) issued an announcement yesterday which further attempts to distance lending institutions from the realm of politics following an aggressive push by the government earlier this year to differentiate microfinance institutions (MFIs) from state-run institutions ahead of the commune elections.

The announcement by CMA serves as a new code of conduct for its 87 members, aimed at strengthening the integrity of microfinance institutions (MFIs) in light of government scrutiny.

Yun Sovanna, general secretary of CMA, explained that the announcement is meant to inform both key stakeholders and the public of the importance of the sector.

“We also want to emphasise the obligation to borrowers and the apolitical nature of the MFIs,” said Sovanna. “As a commercial and non-political entity, our staff should not engage in politics during work hours and it is common sense they cannot use their MFI for political advantage.”

The announcement condemned several unethical principles, including the acceptance of identification cards and family books as collateral for loans, the attempt of some staff to seek profits by claiming their MFIs are public institutions, and the use of logos which allude to specific political parties or affiliations.

The government has spearheaded a series of regulatory changes regarding the MFI sector this year, most notably by imposing an 18 percent interest rate cap on new loans.

MOST VIEWED

  • Rainsy stopped in Paris from boarding Thai flight

    Airline officials at Paris’ Charles de Gaulle airport on Thursday prevented Sam Rainsy from boarding his flight to Bangkok ahead of his announced return to Cambodia on Saturday. Prime Minister Hun Sen had earlier in the day assured Phnom Penh residents that there would be

  • Analyst: Rainsy blocked from boarding flight 'an excuse'

    THAI Airways not allowing Sam Rainsy on its route from Paris to Bangkok on Thursday is being used as an excuse to keep his standing among fellow coup plotters and his uninformed supporters as flights to non-Asean countries are available, an analyst said on Friday.

  • Rainsy lands in Malaysia

    Cambodian opposition figure Sam Rainsy arrived in Kuala Lumpur airport on Saturday afternoon after boarding a flight from Paris, where he has been living for more than four years. Ministry of Foreign Affairs and International Cooperation spokesperson Koy Kuong said on Saturday that Cambodia respected

  • Sokha continues call for dropping of charge after bail conditions reduced

    Not satisfied with having his bail conditions reduced, allowing him to travel freely in Cambodia, Kem Sokha says he wants his charge totally dropped. “As an innocent man who has been in detention for two years even without being found guilty, I continue to demand

  • Touch: Rainsy will never return

    Sam Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), has claimed it has achieved 70 per cent of its struggle to find a solution to the current political situation in the Kingdom. Just before boarding a plane at Charles de Gaulle

  • Prayut indicates no entry into Thailand for CNRP’s Rainsy

    Cambodian government officials on Wednesday welcomed the position of Thai Prime Minister Prayut Chan-o-cha after he indicated that Sam Rainsy would not be allowed to return to Cambodia through Thailand. “According to our commitment to Asean, we will not interfere in each other’s internal