2016 Loans and Deposits at Microfinance Institutions Rose, So Did the Interests

Deposits and loans at microfinance institutions in Cambodia rose in 2016 and so did the interests, according to local media report.

The source cited President and CEO of Hattha Kaksekar Limited Oknha Hout Ieng Tong saying that provision of loans in 2016 at his microfinance institution increased by 20 percent or between US$365-445 million, and the deposits by 38 percent or US$365 million - compared to 2015

Mr. Kea Borann and Mr. Chea Phalarin - CEOs at AMK and Amret Microfinance Institutions, as highlighted by the same source, their loan provisions rose by 18 percent (US$128-152 million) and 35% (US$559 million), respectively in 2016.

Microfinance institutions in Cambodia have limited interest rates for their clients from 1.2 to 3 percent per month or 14.4 to 36 percent a year, while the commercial banks introduced the annual rates between 7 and 9 percent a year, or 0.6 to 0.75 percent per month.

The interests introduced by the microfinance institutions were from 2 to 5 times higher than that of the commercial banks.

Source: Agency Kampuchea Press