Logo of Phnom Penh Post newspaper Phnom Penh Post - NPL rates improve as MFIs prosper

NPL rates improve as MFIs prosper

NPL rates improve as MFIs prosper

Total lending from the Kingdom’s 23 microfinance institutions increased by 33 percent in 2010, while the average non-performing loan (NPL) rate edged downwards, according to data from the Cambodia Microfinance Association.

Some US$647 million was extended by the MFIs – including ACELDA Bank’s small loans – up from $485 million the year previously. CMA chairman Chea Phalarin said an improving domestic economy meant lending had increased dramatically, adding the financial sector suffered a severe setback during the height of the crisis in 2009.

“Business activities came back strong in mid-2010,” he said.

Chea Phalarin is also president Amret, the Kingdom’s largest MFI.  Amret saw lending increase more than 25 percent, with some 238,535 total borrowers in Cambodia. Its non-performing loan rate declined to 0.63 percent, from 3.7 percent.

Sathapana – the third largest MFI – saw lending increase by 45 percent last year, to $57.88 million, according to its chairman, Bun Mony.

Its NPL rate declined from 2 percent in 2009, to 0.93 percent during last year. Bun Mony targeted 50 percent growth in lending during 2011.

Hattha Kakeskar general director Hout Ieng Tong also claimed lending had surged, and NPL rates had improved.

“We had complete success with our business,” he said.

Lending increased 45 percent in 2010 over the year previous, while its NPL rate dropped from 2.5 percent to 0.9 percent. It had extended about $44 million to some 50,000 borrowers at the end of last year.
MFIs holding deposit licences saw increased deposits.

Amret claimed $15 million from 21,600 depositors – up from $3.5 million in 2009. Hattha Kakeskar topped $5 million from 30,000 depositors, and Sathapana, which began receiving deposits early last year, reached $15 million.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The

  • Health ministry issues SOP for travellers

    The Ministry of Health released their official Standard Operating Procedures (SOP) on October 20 for all travellers to Cambodia, with the specific instructions varying according to whether the traveller is fully vaccinated, partially vaccinated or unvaccinated. The SOP document is essentially identical to the updated quarantine