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

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped

  • Kingdom, China rebut basis for US sanctions

    The Council for the Development of Cambodia, the Ministry of Foreign Affairs and International Cooperation, and Tianjin Union Investment Development Group Co Ltd (Tianjin) have responded to US sanctions on Union Development Group Co Ltd (UDG), a Chinese-owned company currently developing the sprawling $3.8 billion Dara

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • Influenza breaks out in eight provinces

    Nearly 600 people have been infected with influenza in eight provinces in the past month, Ministry of Health spokesperson Or Vandine said. The ministry is advising extreme caution. A report released by Vandine on Saturday said the Ministry of Health observed transmissions of influenza between August 15