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Cambodia: More Cambodians struggling to repay MFI loans
Cambodia: More Cambodians struggling to repay MFI loans
Tue, 12 July 2016 – Banking industry insiders expressed concern yesterday over a spike in the amount of delinquent debts reported by microfinance institutions (MFIs) across the Kingdom, which they attributed to farmers struggling to repay their loans after adverse weather conditions affected their crops.
Speaking at an industry workshop, Hout Ieng Tong, chairman of the Cambodia Microfinance Association (CMA), said with about $3 billion in micro loans outstanding, the ratio of delinquent loans has doubled since January. Total loan portfolio at risk (PAR) ? the share of loans where payments are more than 30 days overdue ? has risen to slightly over 1 per cent, from 0.5 per cent at the start of the year. Read More?