Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, called here this morning for legal action against those who have propagated that the microfinance institutions (MFIs) are run by the state.
Speaking at the inauguration ceremony of Buddhist achievements in Prek Pra pagoda in Khan Chbar Ampov, Samdech Techo Hun Sen urged the National Bank of Cambodia to inform the public of the MFIs' clear status.
"MFIs don't belong to the state, but to the private sector," the Cambodian premier underlined.
In order to avoid non-performing loans, the borrowers have to examine their possibility of repayment, while the MFIs have to study clearly the reason(s) why people apply for a loan, said Samdech Techo Hun Sen, stressing that the royal government does not encourage them to ask for a loan for materialistic purposes, for example buying a motorbike or a car.
According to the Cambodia Microfinance Association (CMA), a total of 50 MFIs have been registered as CMA's members. Among them, 8 are also licensed deposit taking institutions.
Source: Agency Kampuchea Press