10월 22, 2019
The microfinance sector has contributed significantly to rural economic growth, even as industry insiders call for more efficient lending, said Cambodia Microfinance Association chairman Kea Borann on Monday.
Speaking at a workshop on Rural Economic Development through the Microfinance Sector, Borann said with more than $6.5 billion in loans issued by microfinance institutions (MFIs) as of the first half of this year, the sector is actively contributing to the Kingdom’s rural development process.
MFI operations currently reach about 90 per cent of the Kingdom’s villages, he said. This year, credit provision to rural clients could grow by about 25 per cent.
“With this progress, the Cambodian heavily-indebted rate has also slowed,” he said.
However, he said progress in the microfinance sector could also put the Kingdom in a credit crunch through irresponsible consumer credit lending.
Borann cited Bosnia and Nigeria as countries with over-booming microfinance sectors which have experienced credit crises.
“Our association works hard to help disseminate and provide information to avoid all risks in Cambodia,” he said.http://https://www.phnompenhpost.com/business/mfis-propelling-economic-growth-rural-cambodia