Major banks show more agricultural sector trust
Major financial institutions show more trust in providing loans to the agricultural sector, evidenced by increasing agricultural loan disbursement, thanks to potential growth in the sector and better preparation of financial report among borrowers, according to industry insiders. Acleda Bank, Cambodia’s largest domestically owned bank, has been increasing its percentage share of its loan portfolio into agriculture from 15 per cent two years ago to 19 per cent at the end of March. While the bank’s total loan portfolio reached about $1.35 billion at the end of March this year, In Channy, the bank’s president and chief executive said $254 million was given to agricultural loans, which represents about 19 per cent of total lending. … Acleda Bank, Cambodia’s largest domestically owned bank, has been increasing its percentage share of its loan portfolio into agriculture from 15 per cent two years ago to 19 per cent at the end of March. … Kim Savuth, the president of the Federation of Cambodian Rice Exporters agreed that accessing loans from banks and MFIs is easier compared to some previous years. Nevertheless, he said farmers still suffer because of higher interest rates offered by micro lenders, while strict requirements from banks were still a barrier for rice millers.
