Loans, deposits up 10 percent in Q1

Outstanding loans and deposits with financial institutions grew by about 10 percent during the first three months of the year, according to the latest report from the Cambodian Microfinance Association (CMA).

The report, which analysed data from 60 microfinance institutions (MFIs) and eight non-governmental organisations, found that outstanding loans expanded by 9.3 percent compared to the last quarter of 2018, reaching over $6 billion.

It also found that deposits reached $3 billion, a 7 percent hike compared to the previous quarter, based on information collected from seven microfinance deposit-taking institutions (MDIs).

Bun Mony, chairman of Vithey Microfinance Institution, attributed the rise in loans and deposits to macroeconomic factors, including a strong economy and a stable political situation. He said the growth reflects the healthy development of the sector.

“As you can see, our economy is performing very well. People need money to expand their businesses. And, also, we are enjoying a very stable political situation in the country.”

According to Mr Mony, most loans are going towards the agriculture sector and to small businesses.

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