Logo of Phnom Penh Post newspaper Phnom Penh Post - MFIs restructure $488m in loans

MFIs restructure $488m in loans

Content image - Phnom Penh Post
MFIs in Cambodia have restructured $488 million in loans for 118,182 clients. Hong Menea

MFIs restructure $488m in loans

Microfinance institutions (MFIs) in Cambodia have restructured almost $500 million in loans for nearly 120,000 borrowers, a move the banks claim helped ease the burden on clients facing Covid-19 financial pressures.

Cambodia Microfinance Association (CMA) head of communications Kaing Tongngy said 137,158 clients had applied for credit restructuring as of Sunday. Of that, 118,182, or 90 per cent, were approved for $488 million.

He said the data collection was aimed at monitoring the impact of Covid-19 on clients, customer support for member institutions and the overall development of the microfinance industry to assess and submit reports to stakeholders.

“The CMA has been working hard with members and stakeholders, especially the National Bank of Cambodia, to assist affected clients,” he said. “The association welcomes any cooperation with parties who are truly willing to contribute to solving customer problems.”

Vithey Microfinance Plc director and CEO Bun Mony told The Post on Thursday that the outbreak had seriously impacted the microfinance sector. He said his bank saw a 3.5 per cent increase in bad loans.

“We suffered a financial hit last month. We started to lose money because nobody paid their debt. It was a serious blow, but we accept it because we understand the crisis. I have a lot of hope that the coronavirus pressures will ease next month,” said Mony.

MFIs may be able to restructure credit for clients if requested and pursuant to the contract between the institution and the client, The CMA said in a press release on Thursday.

Without the appropriate technical solutions, the situation could have a devastating impact on the economy as a whole, it said.

“The association continues to encourage and welcome customers who are affected,” said the CMA. “Please contact your lending institution or a credit officer directly to find an ideal solution.”

As of the end of March, the Kingdom’s MFIs logged $7.4 billion in outstanding loans to more than 2.2 million clients and $3.6 billion in deposits to more than 2.8 million clients, data from the CMA shows.

MOST VIEWED

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • Cambodia to make auto-rickshaws

    Locally-assembled electric auto-rickshaws could hit the Cambodian market as soon as early in May after the Council for the Development of Cambodia (CDC) gave the greenlight to an investment project at the weekend. According to a CDC press release, it will issue a final registration

  • Howard Johnson opens in Sihanoukville

    New York Stock Exchange- (NYSE) listed hotel franchiser Wyndham Hotels & Resorts Inc (WH) has opened its first hotel in the Kingdom – the Howard Johnson Plaza by Wyndham Blue Bay Sihanoukville, WH said in a February 18 press release. WH said the new 36-storey property in Sihanoukville’

  • Cambodia’s new draft law on investment and its effects

    The Council for the Development of Cambodia (CDC) has completed the drafting of the long-awaited new Law on Investment. The draft will be later tabled at the Economic and Financial Policy Committee before being submitted to the Council of Ministers and the National Assembly for