Logo of Phnom Penh Post newspaper Phnom Penh Post - Prince MFI opens in an expanding market

Prince MFI opens in an expanding market

Prince MFI opens in an expanding market

Prince Microfinance Plc held its official opening yesterday, becoming the 49th registered microlender to operate in Cambodia’s rapidly expanding microfinance market.

Hon Sorachana, CEO of Prince Microfinance Plc, said the new financial institution will focus on providing a range of credit options to Cambodians and foreigners, including home loans and debt refinancing.

The lending period ranges from one year to 20 years, with “favourable” interest rates.

Backed by local investors, the microfinance institution (MFI) has already provided nearly $3 million in loans to its clients since receiving a lending licence from the National Bank of Cambodia (NBC) in August, according to Sorachana.

“Generally, [our clients] borrow more than 40 million riel [$10,000] because their businesses are not too small, mostly mid-sized enterprises,” he added.

Yesterday’s launch ceremony was held at Prince’s head office on Mao Tse Tung Boulevard. The MFI plans to open two more branches in the capital early next year.

The new microlender has entered one of Cambodia’s fastest-growing market segments.

According to Kim Vada, director-general of the NBC’s banking supervision department, total lending by licensed MFIs increased 55 per cent year-on-year during the first nine months of 2015. The lenders distributed more than 11 billion riel ($2.75 million) to nearly 2 million clients during this period.

The International Monetary Fund (IMF) warned this week that Cambodia’s credit growth, which has surged about 30 per cent annually for each of the last three years, could pose a significant risk to the country’s economy and financial stability. The IMF urged Cambodia to implement measures including raising the reserve requirements for microfinance institutions.

However, Bun Mony, chairman of the Cambodia Microfinance Association, welcomed the addition of Prince to the Kingdom’s increasingly crowded MFI sector, saying competition was good for everyone.

“We wish to have more MFIs so that there is more competition,” Mony said, “Both newcomers and the existing MFIs must try to improve the quality of their services in order to gain support from the market, and to attract clients for profits and their own survival.”


  • Guards protest dismissals, reject claims of sharing naked photos of child

    Some 20 former security guards at the US Embassy in Phnom Penh protested on Tuesday against their dismissal. They accused their employers of falsely claiming they had viewed and shared child pornography from their mobile phones as grounds for their termination. In total, 32 personnel were dismissed

  • We’re going to Wisney World!

    More than 6,000 mostly Chinese attendees witnessed the inauguration ceremony of a $1 billion Sihanoukville resort project called Wisney World in the capital on Wednesday. The event on Koh Pich, attended by several senior Cambodian government officials, is a joint venture between China’s AMC International and

  • Funcinpec urges probe into deadly Preah Sihanouk accident

    THE Funcinpec party has urged the government, especially the Ministry of Interior, to investigate the traffic accident in Preah Sihanouk province which left Prince Norodom Ranariddh badly injured and his wife Ouk Phalla dead. Funcinpec Vice President You Hokry told reporters at Botum Votey pagoda,

  • Gov’t continues China tilt as ties with the US slide on ‘interference’ in Kingdom’s internal affairs

    CHINA has granted some $131 million in aid to the Cambodian military. It comes as yet another sign that the Kingdom is strengthening strategic ties with its Asian neighbour to counter increasingly cold relations with the United States. The aid was announced as part of a