Logo of Phnom Penh Post newspaper Phnom Penh Post - MFI deposits rise 150pc as loans grow by a quarter

MFI deposits rise 150pc as loans grow by a quarter

MFI deposits rise 150pc as loans grow by a quarter

DEPOSITS in Cambodia’s microfinance institutions surged almost 150 percent during the first six months of this year, compared to the same period of last year, in a trend that MFI officials said was likely to continue.

Although the significant growth was measured against a low base, by June this year total MFI deposits hit 71 billion riels (US$16.7 million).

Deposit numbers were taken from the four companies that hold deposit-taking licences, according to statistics released by the National Bank of
Cambodia.

Deposit-taking MFIs were introduced early last year when the NBC issued permits to Sathapana and Amret.

Hattha Kaksekar Ltd and AMK received licences in February 2010.

Chea Phalarin, president of the Cambodian Microfinance Association and Amret’s general manager, said yesterday that deposits in MFIs were on the rise as customers were drawn by higher interest rates than those offered by commercial banks.

Amret’s deposit base had increased to $7.5 million by the end of the June, up from only $1 million a year earlier, he said.

“We offered interest rates higher than the commercial banks,” of 8.5 percent per year for US dollar-denominated deposits and 10 percent per year for riel-denominated deposits, he said.

Bun Mony, Sathapana chairman, said yesterday that deposits with Sathapana had hit $8 million by the end of June, up from $2.2 million a year before.

“There’s been a huge rise in deposits in the last twelve months thanks to our offer of competitive interest rates and our customers’ trust in us,” he said.

“I believe the trust will continue to increase, so we will continue to attract more deposits throughout the year.”

The NBC figures also showed total outstanding loans among the 22 MFIs increased to 1,357 billion riel ($320 million) for the first half of the year.
That represented a 25 percent increase on last year’s corresponding period.

Total borrowers increased 9 percent to 895,404 people, and the number of depositors at the Kingdom’s MFIs increased 15 percent to 186,082.

MOST VIEWED

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said

  • CPP: ‘Behave or Sokha suffers’

    The ruling Cambodian People’s Party (CPP) spokesman warned Kem Monovithya on Thursday that her attempt to damage “national reputation and prestige” would lead to her father, Kem Sokha, receiving even harsher punishment. Sok Eysan issued the warning as Monovithya, who is the court dissolved

  • Preah Sihanouk beach developments halted

    After receiving an order from Hun Sen, Minister of Land Management Chea Sophara led a team of experts and relevant officials to Sihanoukville to call a halt to the illegal development of a beach. The prime minister ordered the Prek Treng beach in Otres commune