Despite Hun Sen’s appeal, MFIs stay the course

A meeting between microfinance organizations and the finance minister yesterday resulted in no agreements or special measures for debtors affected by last year’s floods, a microfinance representative said, adding that the sector had done enough already to address concerns over debt among flooded communities. On Tuesday, Prime Minister Hun Sen publicly called on microfinance institutions (MFIs) to extend repayment periods and lower interest rates for flood-affected customers. Aid groups have expressed concerns about growing indebtedness in post-flooded areas. Bun Mony, Chairman of the Cambodian Microfinance Association, said that despite Mr. Hun Sen’s strong plea, Finance Minister Keat Chhon made no special demands of the MFIs during the meeting, as they had properly dealt with flood affected customers in recent months.