Logo of Phnom Penh Post newspaper Phnom Penh Post - Microfinance association claims NGO statement “biased”

Microfinance association claims NGO statement “biased”

Content image - Phnom Penh Post
The logo of Cambodia Microfinance Association. CMA

Microfinance association claims NGO statement “biased”

The Cambodia Microfinance Association (CMA) regarded the commentary by NGOs and civil society organizations on the industry as “biased, incomplete, and cherry-picked”, taking just the negative parts of a report produced by Germany’s Federal Ministry of Economic Cooperation and Development (BMZ) into account while ignoring the positive.

Kaing Tongngy, CMA’s spokesman, said that they rejected the commentaries by NGOs and civil society organisations which said Cambodia was in a severe crisis with microfinance debt. He said that the claims did not reflect the full report published by BMZ.

The reaction came after rights groups LICADHO, Equitable Cambodia and FIAN International issued a joint statement about the Cambodian population’s debt to microfinance institutions.

Tongngy said that NGOs and civil society organisations picked out only the negative points and released a statement which he said was unfair.

Citing BMZ’s report, the NGO’s statement said that there is great concern about the widespread debt in Cambodia, which is forcing many people to sell the land they put up for collateral to pay their loans back. The NGOs said this is related to serious human rights violations.

The NGOs said that more than 167,000 Cambodians have sold their land to pay back their loans in the last five years.

But Tongngy claimed that “if we look at BMZ’s report and compare it to the statement by the NGOs, we can see the difference and this is unacceptable. We are now looking into the BMZ report more seriously.”

The NGOs also cited a report by the Institute for Development and Peace (INEF) to make their statement. They said they recommended that general loans for the poorest families should be annulled and compensation given to the families that sold their land to pay debts, among other recommendations.

But Tongngy said that the standards and conditions of loans are different between Europe and Cambodia and that there is no one-size-fits-all standard. He said Europe may preferably provide loans to poor people, but Cambodia provides it to all people who meet the minimum requirements.

He said that the CMA has been flexible and accepted many recommendations and initiatives to protect debtors as well as to ensure the sustainability of the sector.

By the second trimester of 2022, microfinance has provided loans of $8.7 billion to nearly two million recipients, while savings had increased to $4.6 billion, according to the CMA.

MOST VIEWED

  • Ministry taking steps over Thai ‘replica’ of Angkor Wat

    The Ministry of Culture and Fine Arts has dispatched experts to inspect the ongoing construction of a temple in Wat Phu Man Fah, located in Thailand’s Buriram province. This temple appears to be a replica of Cambodia’s renowned Angkor Wat. The ministry said

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • PM to open new Siem Reap int’l airport December 1

    Prime Minister Hun Manet and Chinese leaders would jointly participate in the official opening of the new Chinese-invested Siem Reap-Angkor International Airport on December 1. The airport symbolises a new page in the history of Cambodian aviation, which will be able to welcome long-distance flights to

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Minimum wage set at $204, after Sep 28 vote

    The minimum wage for factory workers in the garment, footwear and travel goods industries for 2024 has been decided at $204 per month, with the government contributing $2. Following several negotiation sessions, the tripartite talks reached an agreement during a September 28 vote, with 46 of 51 votes supporting the $202 figure.

  • Thavisin touches down in Phnom Penh for first official visit to an ASEAN member state

    Thailand's newly appointed prime minister Srettha Thavisin has arrived in Cambodia for a one-day visit. The trip marks his first visit to an ASEAN country since taking office and aims to enhance bilateral trade and investment. According to the agenda, Thavisin is scheduled to hold