NBC agrees to help ease burden on micro-lenders

The Cambodian Microfinance Association (CMA) announced yesterday that the National Bank of Cambodia (NBC) had tentatively agreed to a number of measures in order to help ease the burden on micro-lenders following last week’s decision to cap annual interest rates at 18% as of Apr 1. Hout Ieng Tong, chairman of the CMA, said the central bank had agreed in principle to reduce annual licenses of microfinance lenders and to provide loans in Khmer riel directly to microfinance institutions (MFIs) while acting as a guarantor. He added that the NBC would also consider postponing the 12.5% reserve requirement on borrowing that was supposed to apply to microfinance deposit-taking institution (MDIs) this year, as well as the deadline for micro-lenders to reach their revised minimum capital requirement. Besides, the CMA has also sought the approval of the Ministry of Economy and Finance (MEF) to exempt MFIs from tax profit, he announced.  (Source: Phnom Penh Post)