Officials expressed optimism that microfinance institution Prasac would be able to attract more deposit placing clients, after the inauguration of its new headquarters in Phnom Penh’s Boeung Tompun district yesterday.

Representatives from the National Bank of Cambodia  and Prasac expect the new 10-storey building to enhance trust in the MFI with depositors and to strengthen the status of the organisation in Cambodia’s financial market.

Sim Senacheert, president and CEO of Prasac, said construction of Prasac’s new headquarters began in 2010 and has a working space of about 3,600 square metres and would boost the attractiveness of the MFI.

“I believe the new head office will enhance the public’s trust and encourage them to deposit with Prasac,” he said, adding that the new head office will also push staff to serve clients effectively by increasing productivity and efficiency.

According to Sim Senacheert, Prasac started providing loans in 2004.

So far, Prasac has 161 offices nationwide, covering more than 15,000 villages, or 77 per cent of Cambodia. Deputy Govenor of the NBC Ouk Maly said the inauguration of the new building represented the trust local and international investors have in Prasac.

Ouk Maly said the total value of loans given out by Cambodia’s 37 MFIs at the end of October was $835 million, an increase of 25.52 per cent compared to the same period last year. The loans were disbursed to more than three million clients.

Ouk Maly said deposits reached almost $230 million from over 4.6 million clients, representing a 97 per cent increase from the same period last year.

“This inauguration is an important contribution to the development of MFIs in Cambodia and to meeting the financial needs of the public,” she said.

Participating in the ceremony, vice president of ACLEDA bank’s So Phonnary said the growth of Prasac is not a concern for its competitors.

“For ACLEDA, we don’t think it is a threat because the Cambodian market is bigger,” she said, adding: “Prasac is growing more; our competition brings more choice to the people.” 

 To contact the reporter on this story: Rann Reuy at [email protected]