by Christopher Maggio - South Asia, East Asia and Pacific, Trends/Challenges -

MICROCAPITAL BRIEF: President of the Cambodian Microfinance Association (CMA) Describes 2009 as a “Difficult” Year for Microfinance in Cambodia

According to Hout Ieng Tong, the president of the Cambodian Microfinance Association (CMA), microfinance in Cambodia had a “difficult” year in 2009 in terms of non-performing loans (NPLs), profits, and loan disbursement [1,2].NPLs, which stood at 0.67 percent in 2008, increased by 2.3 percentage points in 2009, according to data that is soon to be published [1]. Mr. Tong has also stated that profits for most Cambodian microlenders fell by at least 10 percent [1]. Hattha Kaksekar Limited, a microfinance institution (MFI) based in Phnom Penh, saw profits fall by 30 percent in 2009 [1,3]. Loan disbursement grew by only 4 percent in 2009, while growth in 2008 was 61 percent [1].

By Christopher Maggio, Research Assistant

About:
Cambodian Microfinance Association (CMA)

Description:
The Cambodian Microfinance Association (CMA) was formally established in 2004 by 7 microfinance institutions (MFIs). According to its website, as of January 18, 2010, CMA now has 18 members. Its main function is to strengthen communication between MFIs and authorities, donors, creditors, and investors.

Contact:
#69, Street Berk Thmey, Sangkat Tom Nop Tek,
Khan Chamkarmon, Phnom Penh, Kingdom of Cambodia

TEL / FAX: +855 23 219 406

Additional Resources:

MicroCapital’s Microfinance Universe profile: Cambodian Microfinance Association (CMA)

About:
Hattha Kaksekar Limited

Description:
Hattha Kaksekar Limited is a microfinance institution (MFI) based in Phnom Penh, Cambodia. It was founded in 1994 by two charitable organizations, the Organisation Canadienne pour la Solidarité et le Développement (OCSD) and Oxfam International. It was transformed into a non-governmental organization (NGO) in 1996 and a private liability company in 2001. Its financial supporters have included Oikocredit, Norfund, Triple Jump, the French Development Agency (AFD), and Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ).

Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/mfi/hkl

Organization’s Website:
http://www.hkl.com.kh/

Just the Facts:
-Country of Incorporation: Cambodia
-Year Founded: 1994
-Legal Status: Private Liability Company
-Total Assets : USD 36.1 million (as of 31/Dec/08)
-Gross Loan Portfolio: USD 29.1 million (as of 31/Dec/08)
-Number of Active Borrowers: 44,467 (as of 31/Dec/08)
-Return on Assets: 6.86%
-Return on Equity: 39.72%
-Participant(s)/Backer(s)/Investor(s): Oikocredit, Norfund, Triple Jump, the French Development Agency (AFD), Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)
-Products and Services: Loans, Savings
-Main Funding Sources: Loans, Savings, Shareholder Capital
-General Manager: Hout leng Tong

Contact Information:
Address:
No.239, Trasak Paem Blvd (St.63, Sangkat Beung Keng Kang I, Khan Chamkamorn
Phnom Penh
Pursat
Cambodia

Phone:
+855 23 994 304

Email:
info@hkl.com.kh

Additional Resources:
Phnom Penh Post article entitled ‘MFIs suffered difficult 2009’: http://www.phnompenhpost.com/index.php/2010011830908/Business/mfis-suffered-difficult-2009.html

MicroCapital’s Microfinance Universe profile: Hattha Kaksekar Limited

MICROCAPITAL.ORG STORY: Cambodian MFIs Cut Interest Rates: Observations From Phnom Penh-Based MFIs Hattha Kaksekar Limited, Prasac MFT Ltd and CHC Limited: https://www.microcapital.org/microcapitalorg-story-cambodian-mfis-cut-interest-rates-observations-from-phnom-penh-based-mfis-hattha-kaksekar-limited-prasac-mft-ltd-and-chc-limited/

Bibliography:
[1] Phnom Penh Post article entitled ‘MFIs suffered difficult 2009’: http://www.phnompenhpost.com/index.php/2010011830908/Business/mfis-suffered-difficult-2009.html
[2] CMA: http://www.cma-network.org/
[3] Hattha Kaksekar Limited: http://www.hkl.com.kh/

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