Prasac borrows $1.5m from German company

Assets of Cambodian Microfinance Institution Prasac reached US$210 million with the combination of newly borrowed $15 million from Germany’s Deg-Deutsche Investitions Und Entwicklungsellschaft Mbh (DEG), officials said during the signing ceremony. The seven-year agreement at an annual interest rate of 5.5 per cent would help Prasac serve loan clients, said Sim Senacheert, president and CEO of the institution. “This is another step forward for Prasac to be recognised as an outstanding financial institution by international investors like DEG,” according to a statement, adding that with such a long-term loan, Prasac could focus on providing more loans to clients at small- and medium-sized businesses in need of financing for productivity improvements and business expansions…. Nguon Sokha, director general and spokeswoman at the National Bank of Cambodia, said that the loans reflect business and economic growth in Cambodia and that the foreign funding for MFIs has been granted on solid criteria.