Logo of Phnom Penh Post newspaper Phnom Penh Post - Lender bender

Lender bender

Lender bender

Leading microlenders have seen loan portfolios expand and profits soar, in one case by almost 100 percent quarter on quarter, as Cambodian business activities are boosted by economic recovery.

Prasac, Cambodia’s largest microfinance institution, reported its loan portfolio increased by 21 percent to US$88.2 million at the end of the third quarter, from $72.9 million at the second quarter’s end. Its client numbers increased by 16 percent to 105,900 nationwide.

“The loan portfolio and number of borrowers grew due to the further increased demand in the agricultural sector and in the small and microenterprise sectors,” said Sim Senacheert, general manager of Prasac.

“We expect to grow 10 to 15 percent in the last quarter of this year.”

Prasac earned a net profit after tax of $728,000 in the third quarter, an increase of 99 percent from $365,000 at the end of the second quater, due to its increased portfolio and a drop in the rate of non-performing loans – which decreased from 1.44 percent to 1.14 percent during the last quarter.

Microlender Hattha Kaksekar Ltd saw oustanding loans increase to $39 million in the third quarter, against $34 million in the second quarter.

Lending growth was also experienced among smaller MFIs.

Cambodia Business Integrated In Rural Development Agency, reported that its lending increased by 2 percent increase to $1 million in the third quarter.
Customers increased by 5 percent to 2,100. The institution provides the interest rate between 2 and 3 percent per month.
“We saw from one quarter to another, lending has gradually increased. It could reflect the recovery of the economy,” Prom Mary, CBIRD board director, said yesterday.
Tal Nay Im, director general of the National Bank of Cambodia, said: “In general, we saw that the demand for loans is pertinent to the situaton of the economy, and since late last year, the recovery has started, and lending has gradually increased.”

MOST VIEWED

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • Shipwreck found off coast of Koh Kong

    Royal Cambodian Navy researchers are working to identify a decades-old shipwreck found earlier this month off the coast of Koh Kong province. Divers found the 70-metre-long wreck on April 4 about a mile from Koh Chhlam island, according to Navy officials. Deputy Navy Commander Tea Sokha,