Firstly, I would like to thank you again for your coverage on
the work of the Association of Cambodian Local Economic Development Agencies
(ACLEDA) and other major organizations which are working in the field of credit
for the poor (Sept 22 - Oct 5, 1995).
We all have the tremendous
challenge ahead of us to continue developing and expanding sustainable financial
services for the poor to ensure that gradually all the poor in Cambodia will
have access to those services.
With reference to the ongoing discussion
on fixed interest rates I noticed that, unfortunately, you have wrongly quoted
I said on this matter that some people show a preference for
establishing fixed and highly subsidized interst rates on loans to the
On the other hand, it is recognized that highly subsidized credit
schemes are not sustainable in the long term as they require tremendous
resources from donors.
Highly subsidized interest rates, therefore, often
only reach a small amount of poor people, even in the long term.
the task of the Credit Committee for Rural Development (CCRD) to guide all
ongoing discussions in the field of credit.
The CCRD has, among others,
the difficult task to prepare a policy framework for rural and decentralized
credit in which the outcome of those discussions will be reflected and which
will be optimally beneficial to all poor in Cambodia.
- In Channy, President of ACLEDA.