Cambodia’s largest microfinance institution, (MFI) Prasac, has received a $60.5 million loan to strengthen its capacity in offering broader financial services in the country.

On Friday, Prasac signed the agreement for the syndicate loan – provided by more than one lender – with the Netherlands Development Finance Company. The Den Hague-based development bank provides $12.5 million, the rest is shared among five other countries.

Sim Senacheert, Prasac’s chief executive, said yesterday that the new loan has an interest rate of between six and 6.5 per cent per year and will partly be used to refinance several lenders that his company owes, while a larger amount serves to expand Prasac’s loans to small and medium enterprises needed to drive growth in Cambodia.

“It will boost our capacity to offer the full range of financial services,” Senacheert said.