March 24, 2023

PM Asks People to Use Microfinance Loans with High Responsibility and Cautiousness

Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, has requested the Cambodian people to use microfinance loans with high responsibility and cautiousness.

The premier made the request through a Facebook post yesterday.

Samdech Techo Hun Sen also reiterated that microfinance institutions throughout the country do not belong to the state, but to the private sector. In order to avoid such misunderstanding, some private banks and MFIs such as the well-known ACLEDA Bank Plc. and PRASAC, have already changed their logo.

In its press release dated Mar. 13, the National Bank of Cambodia (NBC) ordered all MFIs to decrease their loan interest rate from over 30 percent to 18 percent (the highest rate) per year or 1.5 percent per month, and this new rate will come into effect from April 1.

The move is aimed to contribute to protecting the people, especially the poor, from MFIs’ high interest rate and to promoting effective loan use.

The new loan interest rate will apply only to new loans, restructured loans and refinancing, stressed the NBC in another Prakas made public on the same day.

Source: Agency Kampuchea Press