MFIs defy typically slow first quarter

Thursday, 10 May 2012 03:50

Total loans and deposits at the Kingdom’s microfinance institutions jumped in the first quarter of 2012 despite what is typically a slow season for the industry, insiders said yesterday. 

Loans outstanding reached US$708 million for the period ending on March 31, climbing 9.8 per cent from the last quarter of 2011, according to the Cambodia Microfinance Association (CMA). 

At the same time, deposits jumped to $141.4 million, up 23.4 per cent quarter on quarter. 

The sector-wide nonperforming loan rate fell to 0.1 per cent from 0.4 per cent. 

Outstanding loans and total deposits at Amret jumped 15 per cent and 19 per cent, respectively, between the fourth quarter of 2011 and the first quarter of this year. 

Nonperforming loans, meanwhile, dipped to 0.5 per cent from 0.7 per cent.

The increases came despite what is widely recognised as a slower period for the industry, as many crops are harvested in the year's first quarter. 

PRASAC's loan portfolio in the first quarter increased 3.5 per cent year-on-year, according to Sim Senacheert, and 33.5 per cent from the fourth quarter. 

However, the number of borrowers slipped 6 per cent from the fourth quarter while rising 4.7 per cent year-on-year.

MFI industry would see faster growth from the end of the second quarter, rising as much as 30 per cent to 40 per cent for the year.

Source : Phnom Penh Post, 08 May 2012