cellcard cellcard cellcard

Loans, deposits up 10 percent in Q1

May Kunmakara / Khmer Times Share:
A customer talks to a teller at a branch of Prasac Microfinance. KT/Chor Sokunthea

Outstanding loans and deposits with financial institutions grew by about 10 percent during the first three months of the year, according to the latest report from the Cambodian Microfinance Association (CMA).

The report, which analysed data from 60 microfinance institutions (MFIs) and eight non-governmental organisations, found that outstanding loans expanded by 9.3 percent compared to the last quarter of 2018, reaching over $6 billion.

It also found that deposits reached $3 billion, a 7 percent hike compared to the previous quarter, based on information collected from seven microfinance deposit-taking institutions (MDIs).

Bun Mony, chairman of Vithey Microfinance Institution, attributed the rise in loans and deposits to macroeconomic factors, including a strong economy and a stable political situation. He said the growth reflects the healthy development of the sector.

“As you can see, our economy is performing very well. People need money to expand their businesses. And, also, we are enjoying a very stable political situation in the country.”

According to Mr Mony, most loans are going towards the agriculture sector and to small businesses.

Prasac Microfinance, a leading MFI in Cambodia, reported that its loan portfolio grew by 13.3 percent from January to March compared to the previous quarter. About 57 percent were business loans, while the rest were personal loans.

Prasac’s deposits, meanwhile, grew by 13.8 percent during Q1.

Say Sony, Prasac vice president, told Khmer Times that “the growth is the result of good economic performance on the part of our clients as well as a favourable macroeconomic situation.

“The public has confidence and trust in our services. Depositors are benefiting, and our good service is keeping clients satisfied,” he said.

According to the recently issued Financial Stability Review, a publication of the Central Bank, household credit accounts for 36 percent of total credit for MDIs and 40 percent for MFIs.

Previous Article

Chinese team ready to begin study on railroad revamp

Next Article

Kampot pepper production to reach 90 tonnes