The Mirror, Vol. 13, No. 602
Apologies for the delays in publishing – due to my international travel. I try to catch up as soon as possible.
Norbert Klein
“Phnom Penh: Cambodian microfinance officials said that the number of citizens getting loans from microfinance institution in Cambodia belong to over one million families among the more than three million families in the country.
“The director and general manager of the Microfinance Institution Sthapana Limited, Mr. Bun Mony [also a member of the board of the Cambodian Microfinance Association], told journalists at the Hotel Cambodiana on Thursday morning that in 2007, there were 18 microfinance institutions with a total capital of US$271 million, providing small-scale capital for Cambodian citizens. In 2008, capital to lend to citizens rose up to US$437 million, which was an increase by 61%. He added that this growth had increased for several years between 60% and 80%.
“He went on to say that at present, more than one million Cambodian families have received loans from different microfinance institutions – counted in December 2008. Among one million families, he assumes that in every family involved, each one receives capital for family supplies; recent figures shows that there are more than three million families in Cambodia. He continued to say, “According to my own calculations, 35% of Cambodian families gain benefits from microfinance.’
“Regarding the global economic crisis, Mr. Bun Mony said, ‘In 2009, we face a somewhat tense situation when we try to expand our loan programs. We cannot expect to achieve 50% to 60% growth like in previous years, but the expansion will decline to only between 10% to 20%.’ He explained that this problem relates to the sources of capital, because we do not yet have enough capital ourselves, while big countries are facing a crisis. It leads also to a slowdown for our country.
“Mr. Bun Mony explained the extent to which the financial crisis affects loan distributions, saying that this crisis affects every country and it affects also Cambodia. As for the microfinance sector, it is heavily affected, because around 80% of the present capital sources from which loans are received for citizens to develop the economy come from foreign countries. While even economically rich countries have a crisis, we are affected. That means we will face difficulties to seek additional sources of capital to strengthen our microfinance activities.
“He went on to say, ‘The difficulties that we are facing is to find sources of capital. Therefore, we have to do something to maintain the sustainability of capital sources, to support sustainable economic development. We all saw that we must strengthen our management to promote trust from the community of international investors, so that they trust the market in Cambodia.’
“Mr. Bun Mony said also, ‘All are challenged by this tense situation. Not only the citizens, also the microfinance institutions and the providers of capital.’ He added that before the financial crisis, 50 banks came to seek opportunities for investment in Cambodia – that is, they provided us loans, since they trust our microfinance systems: there are only 18 licensed institutions, but we have more than 50 capital providers.
“Mr. Bun Mony described what happened to this sector after Cambodia had new financial regulations [requiring a higher cash retention rate]: ‘After we had this new financial regulation, there was no operator saying that they have loans for us.’
“Regarding what the government did to help this sector, Mr. Bun Mony said that previously, he had asked the government to ease restrictions on the local sources of capital, but the government found it difficult to help us. He added that microfinance institutions are absolutely private sector institutions.
“Relating to aid from the government, he said that he received no response from the government, because he had never raised it to the government.
“The chairperson of the Board of Directors of the Cambodian Microfinance Association, Mr. Huot Eng Tong, said that in the present global financial situation, the microfinance sector is suffering serious impacts. ‘Anyway, I strongly hope that the finance sector will receive support from all sides to encourage microfinance institutions to achieve further development and success.’
“Mr. Huot Eng Tong added that this sector plays a crucial role to develop the country, to help Khmer citizens to create, expand, and improve their economic activities, in agriculture, and in population centers and in rural areas, to offer citizens job opportunities, to alleviate poverty, and to provide cheaper financial resources at rural areas than the bigger private sectors do, the institutions with higher interest rates.” Rasmei Kampuchea, Vol.17, #4838, 6.3.2009
Newspapers Appearing on the Newsstand:
Friday, 6 March 2009
Deum Ampil, Vol.3, #131-132, 5-6.3.2009
- Samdech Dekchor Hun Sen Apologizes [to the public] for the Late Closure of Gambling
- Samdech Prime Minister: [former Royal Cambodian Armed Forces commander-in-chief] Ke Kim Yan Will Be the 10th Deputy Prime Minister [heading drug control administration]
- Asian Human Rights Committee [based in Hong Kong]: Cambodia Should Have an Organization’s Law
- Cambodia Will Create the Position of a Military Attaché at the [Cambodian] Embassy in the United States of America [according the spokesperson of the Ministry of Foreign Affairs, Mr. Koy Kuong]
- Two Men Raped a 13-Year-Old Girl and Left Her Get Lost in the Forest [police have not yet arrested the two men although there are indications from the victim’s family – Kompong Thom]
Kampuchea Thmey, Vol.8, #1890, 6.3.2009
- The European Community Announces New Aid to a Food-for-Work Program in Cambodia [worth approx. US$17 million]
Koh Santepheap, Vol.42, #6595, 6.3.2009
- USAID Provides US$21 Million to Promote Economic Growth
- Preah Vihear Authorities Start Building Steps to the Preah Vihear Temple
- In the Northeast of Thailand Is Khmer Surin
Rasmei Kampuchea, Vol.17, #4838, 6.3.2009
- More Than 35% of Citizens Use Loans from Microfinance Institutions
- The National Assembly Will Restore Mr. Sam Rainsy’s Immunity
- Two Months in Early 2009: 16 Factories Closed, 11 Factories Opened, and 16 Factories Suspended Their Work
- The Korean Ambassador [Mr. Shin Hyun-Suk – 신현석, 申 鉉 錫] Said that despite the Global Economic Crisis, Korea Still Helps Cambodia
- Ten US Private Companies Come to Check Potential for Future Investment in Cambodia
- A Man Killed His Colleague and Wrote a Note before Escaping [saying that he killed in self defense, and that he will commit suicide – police are seeking him – Phnom Penh]
- The United States of America Criticizes Israeli Plan to Demolish Many Houses of Palestinian Citizens
Wat Phnom, Vol.16, #8009, 6-8.3.2009
- [The Director General of the National Police] General Net Savoeun Digs Out Big Criminal Cases Again [it is not mentioned which ones]; Samdech Hun Sen Sets Two Important Strategies to Reform the National Police Institution [1. Reduce crimes to control social security, and 2. Reduce inactivity of police which makes people not to trust police competence]
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