Logo of Phnom Penh Post newspaper Phnom Penh Post - Credit growth resumes pace

Credit growth resumes pace

Credit growth resumes pace

The volume and value of consumer credit applications increased nearly a third year-on-year during the first quarter of 2017 as a result of surge in mortgage and personal finance applications, according to the latest data by the Kingdom’s credit reporting agency.

The number of credit applications grew 29 percent in number and 30 percent in value during the first three months of 2017, compared with the same period a year earlier, the Credit Bureau Cambodia (CBC) said in its quarterly Credit Index report. Driving the growth was applications for mortgages, which grew 47 percent and saw their highest growth in the southern half of the country including Phnom Penh.

Applications for personal finance saw strong growth spread evenly across the country, with a 28-percent year-on-year increase during the first quarter, according to the report. Credit card applications, however, saw an 11 percent decline nationwide during the first quarter, compared with the same period in 2016.

Sothearoath Oeur, interim CEO of CBC, said the growth signified a return to Cambodia’s galloping pace of credit expansion after an unusually slow fourth quarter in 2016 that saw just 1 percent growth in total credit applications by value.

“The first quarter of the year, as usual, saw a significant growth of credit applications, though credit cards seemed to slow down compared to the previous quarter,” Oeur said in a statement.

The total outstanding balance of consumer loans nationwide amounted to $3.6 billion as of March 2017.

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there