Original report from Phnom Penh
11 August 2009
Cambodia’s microfinance institutions are competing with each other with various strategies to extend growth, following a decline in their number of borrowers in the wake of the economic downturn.
The Prasac Microfinance Institution has implemented three strategies over the past two months in order to bring in more borrowers, said Sim Senacheert, general manager of the lender. These include the reduction of interest rates, of up to 0.6 percent, a loosening of credit requirements and promotions through the mass media.
“We put down strategies to boost lending growth, and after these strategies were implemented, our credit demand grew between 4 percent and 5 percent,” he told VOA Khmer in an interview.
Interest rates for microfinance lending are some of the highest in the region, between 2 percent and 4 percent per month, and also require collateral and a guarantor.
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