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

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided