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Deposits rally after election outflows

Deposits rally after election outflows

Savings levels at Cambodia’s microfinance institutions (MFIs) have recovered well since the widespread withdrawal that followed last July’s disputed national election, with more than $90 million deposited in the first quarter of this year.

The amount of deposits in MFI accounts fell from $378 million in June 2013 to a low of $365 million the following quarter. Since then, deposits have recovered strongly, reaching $445 million at the end of 2013 and $536 million on March 31 this year, according to the Cambodian Microfinance Association (CMA).

The Post reported in November that more than $600 million flooded out of Cambodia’s banking system during the third quarter of 2013, after panic set in following the disputed election.

The ballot results triggered allegations of foul play from the opposition, which is still refusing to take its seats in the National Assembly.

Bun Mony, president of CMA, and general manager at MFI Sathapana Limited, said many depositors have returned with confidence.

“Everything is becoming
normal and the amount of saving deposit in first quarter this year has increased a lot compared with previous quarters,” Mony said.

Microfinance institution loans outstanding at the end of the first quarter reached $1.51 billion, up from $1.32 billion at the end of 2013.

Loan disbursements over the first three months of this year totalled $191 million.

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