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

  • First Khmer woman to pass out of West Point

    The life of a soldier certainly isn’t for everyone. The training is gruelling, the hours long and there’s no room for excuses. On top of that, soldiers must be ready to respond to sudden threats at a moment’s notice. Just ask Sithyka

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • Deminers unearth ancient lion statue

    Cambodia Mine Action Centre (CMAC) director-general Heng Ratana told The Post on Tuesday that a statue of a lion was found by mine clearance experts while they were digging for a development project. It was sent to the Ministry of Culture and Fine Arts last