MICROCAPITAL BRIEF: Cambodian Microfinance Association (CMA) Reports Poor 2009 Performance for Microfinance Institutions in Cambodia

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…

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