The Cambodian Microfinance Association (CMA) recently reported that non-performing loans (NPLs) rose an estimated 2.3 percentage points in 2009, as profits from most microcredit lending firms fell by double digits. Hout Ieng Tong, chairman of the CMA, said that bad loans hit 3 percent and loan disbursement grew just 4 percent last year to USD 455 million. This is a sharp decrease from the 61 percent growth rate seen in 2008 in Cambodia.
“The profit drop is due to lowering interest rates and the NPL ratio reaching 3 percent last year from zero in 2008,” said Mr Tong.
By Jay Kumar, Research Assistant
1.) Source Article: http://www.phnompenhpost.com/index.php/2010011830908/Business/mfis-suffe…
Similar Posts:
- MICROCAPITAL BRIEF: Non-performing Loan (NPL) Ratios Up Among Microfinance Providers in Bangladesh
- MICROCAPITAL BRIEF: QR Codes to Facilitate Retail Payments Across Cambodia-Laos Border
- MICROCAPITAL BRIEF: ADB Issues $8.5m Bond to Fund On-lending to Women, Agricultural MSMEs in Azerbaijan
- MICROFINANCE PAPER WRAP-UP: “Microfinance in India: Issues, Challenges and Opportunities;” by Mohammad Abu Saleh, Zubair Ahmad
- MICROFINANCE PAPER WRAP-UP: “Land Titling and Microcredit in Cambodia: Examining the Reality of Hernando de Soto’s ‘Three Steps to Heaven,’” by Milford Bateman