MFI Increases Loans as Economy Grows
As rising economic growth spurred demand for personal loans, Prasac, Cambodia’s biggest microfinance institution (MFI), provided $106 million in loans between March, 2012 and March, 2013, an increase of 66 per cent compared with the corresponding period a year earlier. … “Loans [were] mainly used for service and trade activities, representing 44 per cent; followed by agriculture, [accounting for] 30 per cent; and personal loans, [accounting for] 23 percent,” [Prasac president and chief executive Sim Senacheert] said. … According to a study released this month on micro-finance borrowing in Cambodia, “The sharp growth of the sector has resulted in substantial competition, and there have been concerns that it may be leading to cross-lending and, possibly, over-indebtedness of borrowers.”…
http://www.phnompenhpost.com/2013041965111/Business/mfi-increases-loans-as-economy-grows.html
