Logo of Phnom Penh Post newspaper Phnom Penh Post - IFC loans $10 million to HKL for rural SMEs

IFC loans $10 million to HKL for rural SMEs

IFC loans $10 million to HKL for rural SMEs

The International Finance Corporation (IFC) has given Cambodian microfinance institute Hattha Kaksekar Ltd (HKL) a loan of up $10 million, aiming to boost access to finance to small- and medium-sized enterprises in Cambodia’s rural areas.

The additional loan is intended to help HKL, Cambodia’s fourth-largest microfinance institution, achieve its goal of doubling its loan portfolio to $504 million by 2017, according to a statement released yesterday.

HKL plans to leverage its mobile-banking services to expand its reach to farmers in Cambodia’s provinces.

“By using mobile products, customers will be able to do many financial transactions anywhere and at any time, such as mobile top-ups, bill payments, loan repayments, money transfers, and other financial services,” Hout Ieng Tong, president and CEO of HKL said in the statement.

“The disbursement of IFC’s loan today will contribute to Cambodia’s macro-economic growth because it will be used to directly support HKL’s micro and small business customers who work very hard to improve their lives and education.”

According to the statement, this is the fourth time this year that the IFC has lent to Cambodian MFIs.

“[The IFC] is a major investor worldwide in the international market and deciding to invest in HKL is good support to microfinance,” said Bun Mony, president of the Cambodia Microfinance Association.

Ayanna Runcie

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty