The financial sector in the country will continue to remain strong into the next year, amid the persisting (though less severe) scourge of the COVID-19 pandemic. Making the bold forecast, Phal Vandy, Executive Director of the Cambodia Microfinance Association (CMA) said that the local financial sector has continued to grow and remained resilient amid the pandemic. The CMA is professional association that ‘aims to ensure the prosperity and sustainability of the microfinance sector in Cambodia’.
According to him, the value of loans extended by banks and microfinance institutions actually increased significantly compared to the previous year. In the first nine months of 2021, he noted, Cambodian banks and MFIs disbursed 23 percent more loans compared to the same period last year.
As of the third quarter of 2021, Cambodian banking and financial institutions provided a total loan of $44.9 billion, covering manufacturing, construction, wholesale and retail trade, agriculture, among other sectors, according to Cambodian Government figures.
“We are very happy with the growth and robustness that the financial sector, especially the microfinance sector, has achieved so far. Despite the difficulties posed by the COVID-19 pandemic, the Cambodian Government, especially the National Bank of Cambodia, has done a good job of making the sector resilient,” Vandy pointed out.
“The growth of loans, the growth of the financial sector as a whole, including microfinance, is indicative of the right strategy of helping customers in difficult times. The success of the customers is the success of the whole sector,” he added.
Vandy said the sector has benefited from a successful vaccination drive and subsequent re-opening of the country. “The pandemic was kept under control,” he stressed.
The total percentage of the Cambodian population vaccinated with at least one dose stands at 88.91 percent as of December 19, according to the Ministry of Health.
“With the resilience and experience we have gained in response to the pandemic, we are confident that our sector will continue to be strong and we will contribute to the socio-economic development of Cambodia beyond the expectations of development partners,” Vandy concluded.
The CMA has also pitched in their expertise to help stabilise the sector and give it a better chance of making a comeback next year.
“At CMA, our priority is to work with our members to provide inclusive and responsible financing along with promoting financial education and client protection to ensure sustainable growth and stability of the microfinance sector,” Kea Borann, CMA chairman, pointed out in a prior interview with Khmer Times.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
