More Cambodians struggling to repay MFI loans
Banking industry insiders expressed concern on 11 July over a spike in the amount of delinquent debts reported by microfinance institutions across the Kingdom, which they attributed to farmers struggling to repay their loans after adverse weather conditions affected their crops. “Loans in the agricultural sector account for about 30 per cent of all lending in the microfinance industry, and this sector was seriously affected by drought in April and May,” Hout Ieng Tong, chairman of the Cambodia Microfinance Association said, explaining that drought reduces farmers’ cash flow and makes it more difficult for them to make their loan payments.
