"Microfinance is a private institution."

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"Microfinance is a private institution."

Postby CEOCambodiaNews » Mon Feb 20, 2017 11:27 am

Prime Minister HE has ordered local authorities not to get involved in cases where microfinance institutions (MFIs) moved to repossess property over loan defaults.
Mr. HE issued the order at a cabinet meeting on Friday.

He said his order applied to authorities at all levels in the capital, provinces, cities, disticts and villages.
“Civil servants, police and the military should stop accompanying officials from MFIs,” he added.

“Such practises confuse people into thinking that microfiance institutions are owned by the state, when they belong entirely to the private sector.”
Mr. HE said MFI officials must wear a T-shirt with the words, “Microfinance is a private institution”.

“We do not want to see our people hurt and bear burdens resulting from the loans they cannot pay back to the MFIs,” he added.
“We must take action now. I have learned that some families borrow money from two or three microfinance institutions and some cannot pay them back.”

Prime Minister HE also ordered the Ministry of Economy and Finance and the Commerce Ministry to work with Acleda Bank to remove the logo of the mythical bird from its sign within three weeks.
This was because the logo belongs to the Ministry of Economy and Finance, and removing it from the bank would avoid confusion...

http://www.khmertimeskh.com/news/35604/ ... ials-told/
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Re: "Microfinance is a private institution."

Postby CEOCambodiaNews » Wed Feb 22, 2017 10:17 am

Bank ordered to replace its logo

ACLEDA Bank, Cambodia’s largest bank in terms of assets, will have to shell out millions in the next three weeks to comply with a Council of Ministers decision last Friday that the private financial institution must redesign and replace its logo on all company materials and products to differentiate itself from the Ministry of Economy and Finance, a senior bank executive said yesterday.

Acleda Bank CEO In Channy said the bank would shelve the mythological golden bird insignia it has used since 2003 when it became a commercial bank for a watered-down logo comprised purely of English and Khmer script.

He said his bank would comply with the government’s demands, which includes dropping the logo on all of its 259 locations in Cambodia, 41 branches in Laos and one in Myanmar. It will also change the logo on an additional 353 billboards across the region and all 1.7 million bank cards that the financial institution has issued.

The rebranding operation will cost about $3.5 million, or about 3 percent of the bank’s 2016 net profit, Channy estimated...
http://www.phnompenhpost.com/business/b ... e-its-logo
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Re: "Microfinance is a private institution."

Postby CEOCambodiaNews » Thu Feb 23, 2017 11:03 am

Don't be confused says PM (again):

Mobile Firms Told to Spread Message: MFIs Not State-Run

by Kuch Naren | February 23, 2017 | អានជាភាសាខ្មែរ

Prime Minister HE on Wednesday pulled the country’s mobile operators into his aggressive campaign to clear up any confusion about the relationship between the government and microfinance institutions (MFIs), ordering them to send audio and text messages telling subscribers that MFIs were private entities.

Mr. HE said earlier this month that many people were under the false impression that debt accrued from microfinance loans was state money and could be forgiven by the government, a view he said was being pushed by rival political parties and causing resentment toward the ruling party.

“We now launch a campaign for a whole year, so all media outlets need to broadcast and say, ‘All microfinance institutions are private, not state-owned,’ starting from tomorrow,” Mr. HE told a crowd of ministers, professors and students at a graduation ceremony on Wednesday at Phnom Penh’s National Institute of Education.

He also called on mobile phone companies to spread the same message, noting that Cellcard had already sent out audio messages. Smart had sent a text message Wednesday’saying, “All microfinance institutions in Cambodia are private, not state-run so the people should not be confused.”...

https://www.cambodiadaily.com/news/mobi ... un-125665/
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Re: "Microfinance is a private institution."

Postby eriksank » Thu May 04, 2017 2:28 pm

CEOCambodiaNews wrote:
Mon Feb 20, 2017 11:27 am
“Civil servants, police and the military should stop accompanying officials from MFIs,” he added.
The prime minister is absolutely right. The banks are not following proper bankruptcy procedure. If a family is unable to pay, an independent court can proceed to liquidating their assets. The bank cannot do that by itself, just by bribing civil servants, policy or military.
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Re: "Microfinance is a private institution."

Postby juansweetpotato » Thu May 04, 2017 5:01 pm

I love the way it was allowed to happen before he realised the effect it was having on potential votes. There is a real sense of panic in his words. Of course, the ministers, their extended families, the generals and police chiefs etc haven't been making land /money out of them.
They almost make the investors look clean. Almost...

However, the knock on effect seems to be - if you want instability here - just invest in MFI's. They are a real agent for change.
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Re: "Microfinance is a private institution."

Postby juansweetpotato » Fri May 12, 2017 10:22 am

At last, somebody seems to be paying a little bit of attention to the kingdom's MFI problem.

Opinion: Microcredit Sector Hits Wall of Own Making
BY GUEST CONTRIBUTOR | MAY 12, 2017

In the early 1990s, the microcredit model pioneered in Bangladesh by Dr. Muhammad Yunus came to Cambodia.

Today, Cambodia possesses one of the world’s largest and most profitable microcredit sectors. Recently, however, it has faced serious criticism for high levels of individual over-indebtedness, steep interest rates and high profits made by the largest microcredit institutions, many of which are now owned by foreign investment houses and commercial banks.


Indeed, thanks to the extent of over-indebtedness and microcredit (also known as micro- finance) market saturation, fears are growing that there may be a repeat in Cambodia of the disastrous “microcredit meltdown” that took place in Andhra Pradesh state in India in 2010./quote]

https://www.cambodiadaily.com/opinion/o ... ng-129618/
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