Tag Archives: microfinance

Credit crunch hits MFIs

MICROFINANCE organisations said they expect slower growth and higher interest rates as the credit crunch hits foreign lenders who had been a key source of funding to local MFIs. The main threat, sources said, stems from the decrease in available capital as foreign backers trim their emerging market investments, leaving microfinancers less able to serve … Continue reading

Microfinance lending down

MICROLENDERS reported slower loan growth in 2008 at the Banking Cambodia conference last week, adding that a stronger deposit base would put the sector on a solid footing for 2009. Hout Ieng Tong, chairman of the Cambodia Microfinance Association, said loans declined to US$438 million in 2008 from $470 million the previous year, speaking at … Continue reading

Low interest rate and increase in loans are important to boost agriculture sector

Agriculture sector has expanded gradually thanks to productivity gains, reflecting an increase in the area under irrigation, the use of improved agricultural inputs and greater commercialization of farming. By the way, without financing, farmers cannot adjust to changing market conditions or capitalize on opportunities to commercialize their existing agriculture activities.

National Bank cut reserve requirement from 16% to 12%

Commercial Banks and real estate agencies applauded the move, which the National Bank of Cambodia slashes bank reserve requirement from 16 percent to 12 percent, eliminated restrictions on real estate lending effective on Feb 01. The Central Bank tripled the minimum capital requirement for all commercial banks on September 19, 2008 in a bid to … Continue reading