Logo of Phnom Penh Post newspaper Phnom Penh Post - Grameen foundation aids Kingdom’s MFIs

Grameen foundation aids Kingdom’s MFIs

Grameen foundation aids Kingdom’s MFIs

TWO Cambodian microfinance institutions have secured loans from the Luxembourg-based Grameen Credit Agricole Microfinance Foundation, amounting to a total US$1.14 million.

Thaneakea Phum Cambodia Ltd received the equivalent of a $1 million loan, while Chamroeun Microfinance received a loan of $144,000, according to a release from Grameen Credit Agricole Microfinance Foundation this week.

Michael Spingler, TPC Chairman, said the three-year loan was the first TPC has received from the Foundation.

“TPC began discussions with GCAMF in May and received the loan in November,” he said via email yesterday.

“The loan will be used to service client demands. It will assist to meet new client and existing client loan requirements.”

Established in 1994 and officially licensed by the Cambodian government in 2003, TPC’s average loan size is $250, and about 90 percent of its customers are women, Spingler said.

“TPC was established to help rural low-income women by providing them with access to financial products and services that they can use to finance their microenterprises… For this reason, the majority of TPC’s loans are group loans – community-based lending facilities delivered directly to villages – to better serve female entrepreneurs,” he said.

According to Spingler, TPC is the fifth largest local MFI by client base, and the eighth largest in terms of portfolio size. As of November 2010, TPC was had a gross loan portfolio of $21.5 million and total assets of $29.8 million. It’s return on equity was 15.52 percent.

Chamroeun Microfinance could not be contacted for comment but according to the GCAMF release, it was established in 1995. In 2009 it reported to the Microfinance Information Exchange (MIX), a gross loan portfolio of $679,000 and total assets of $755,000. Its return on equity was negative 25.14 percent.

GCAMF was established in 2008 as a partnership between Bangladeshi pioneering microfinance foundation Grameen Trust and French retail bank Credit Agricole SA which provided a 50 million euro ($73 million) endowment. It offers financing products to MFIs, “targeting MFIs that adhere to transparency and consumer protection practices and focuses on MFIs dedicated to agricultural and rural development, specifically those intended for women”, according to the release.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • School reopening can’t wait

    With the Covid-19 pandemic now well into its second year, safely reopening schools has become an urgent priority. School attendance is critical for children’s education and lifetime prospects. The long-term costs of closures – both for individual children and society – are simply too large to

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of