Prasac interest rates

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epidemiks
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Re: Prasac interest rates

Post by epidemiks » Sat Sep 02, 2017 8:24 am


AlonzoPartriz wrote:
AndyKK wrote:
Thu Aug 31, 2017 6:38 pm
Are these the interest rates for depositor's? If so what are the pay back rates for lenders? Or are they one of the same?
New loans have been capped at 18% since April or so this year, compounded up to 50 or so % p a I shouldn't wonder. If so, down from 80% per annum on a $1500 or so loan. The middle men, the MFIs, have cut their customer's investment returns while more than likely​ keeping the same or very similar​ profits themselves. They still get to sell off their defaulting customers land at highly inflated rates than which they'd purchased it though. It's the really poor that fund the whole thing. Who else would​ ever even consider taking out $1500 at 80% pa. No wonder NGOs have a bad reputation in Cambodia.
It's 18% per annum on loans, not per month.

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Re: Prasac interest rates

Post by Bitte_Kein_Lexus » Sat Sep 02, 2017 8:38 am

Yeah I thought it was pretty obvious this was on deposits... Might be an early sign of a slowing economy.
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Re: Prasac interest rates

Post by AlonzoPartriz » Sat Sep 02, 2017 10:03 am

epidemiks wrote:
Sat Sep 02, 2017 8:24 am
AlonzoPartriz wrote:
AndyKK wrote:
Thu Aug 31, 2017 6:38 pm
Are these the interest rates for depositor's? If so what are the pay back rates for lenders? Or are they one of the same?
New loans have been capped at 18% pa since April or so this year, compounded up to 50 or so % p a I shouldn't wonder. If so, down from 80% per annum on a $1500 or so loan. The middle men, the MFIs, have cut their customer's investment returns while more than likely​ keeping the same or very similar​ profits themselves. They still get to sell off their defaulting customers land at highly inflated rates than which they'd purchased it though. It's the really poor that fund the whole thing. Who else would​ ever even consider taking out $1500 at 80% pa. No wonder NGOs have a bad reputation in Cambodia.
It's 18% per annum on loans, not per month.
Whereas it was 28% per month before? I think you may be wrong about this as has been posted before. I'll dig up the post if you're insistng, or have some proof of what you say. As far as I remember it used to be compounded up to 80%. If it is as you say, which I very much doubt, then it is very good news for investors, as although they will be making a lot less, they will get a warm glow of satisfaction from all the help they are giving to the very nearly poorest of the poor.

IS it perhaps a bit too early to give the big thumbs up to MFI investors? Oh, what the hell :thumb:

EDIT I was wrong on saying 28%, it was sometimes more like 48% pa, eg with ACLEDA.
I never said anything about per month. I just said it was compounded up to 80%. I think you were swiping at my use of the word compounded? You pay them back monthly at 4%, you pay more interest on less money each time. Maybe not the traditional use of the word as far as investors go, but the interest gets greater the longer you pay it so...

Here's the relevant article about how the old interest worked out at 80%. Anyone with a loan before April is still paying around this rate.

https://letters2pppapers.wordpress.com/ ... rofinance/
"
"Letters to Phnom Penh Newspapers My way of being heard despite what editors think

Microfinance
[The first of these letters was printed in the Phnom Penh Post in September or October 2005. It produced a response from one Tom von Weissenberg, to which the second letter is a rebuttal. I don’t recall whether the second letter was printed.]

‘Role Model’ Bank

Your article about the Acleda Bank (“World Bank-IFC To Honor Acleda as ‘Role Model’”, September 23) quotes In Channy as saying that his bank charges 48 percent annual interest on small loans.

In ordinary English, this suggests that a borrower receives, say, $100, and at the end of one year pays $148 to the bank. That would be 48 percent simple interest.

However, Acleda loans (and most other small loans in Cambodia) are not repaid in this fashion. The borrower is charged a monthly interest rate and makes interest payments monthly. Acleda’s rate of 4% a month means that the borrower of $100 has the use of the full $100 for only one month; he or she returns $4 to the bank at the end of each month and therefore has the use of only $96 for the second month, $92 for the third month and so on.

By the start of the 12th month, the borrower has returned $44 and thus has the use of only $56 for the final month of the loan.

Over the course of the year, the real amount of the loan has been, not $100, but the average of the starting and finishing amounts, namely $100 + $56 divided by two, or $78. The real simple interest rate is therefore $48 divided by $78, or 61.5%. (In the past, Acleda sometimes charged 5% a month, which works out to almost 83% a year in simple interest.)

Freedom from corruption is certainly commendable, but it does not, by itself, produce any income. Usury seems to have far more to do with Acleda’s rise from a simple NGO to a multimillion dollar commercial bank. This casts a rather different light on its “incorruptibility”, which is more than just refusing to give or receive bribes.

Most NGOs enter Cambodian villages with the message, “We are here to help.” Did Acleda, in the interest of transparency, proclaim, “We are here to accumulate profits and become a bank.”?

That, after all, is what happened, and not by accident. The hard-earned riels of poor villagers paying interest of 61.5% or 83% are the source of Acleda’s wealth.

One would like to know exactly how the transfer of those funds to Acleda “benefited” the poor people who lost them. That is not the sort of question that has ever troubled the World Bank. But Cambodians should take note of what the WB considers “model” behavior
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Re: Prasac interest rates

Post by Forktongue2 » Thu Sep 14, 2017 1:12 am

Thank god I returned to England. What a bunch of retards!

I posted the new deposit rates only because it did not differentiate between the Riel and US $. This is the FIRST TIME ever.

I thought this was of interest to the expats in Cambodia on fixed incomes.
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Re: Prasac interest rates

Post by AlonzoPartriz » Thu Sep 14, 2017 9:29 am

Forktongue2 wrote:
Thu Sep 14, 2017 1:12 am
Thank god I returned to England. What a bunch of retards!

I posted the new deposit rates only because it did not differentiate between the Riel and US $. This is the FIRST TIME ever.

I thought this was of interest to the expats in Cambodia on fixed incomes.
Haha. I hope you have been bragging to all your mates back home how you've been making 10% off the backs of dirt poor people in the third world, in some cases forcing them to make arrangements with pimps for their kids or be illegals working abroad And at the same time complaining how the bastards have cut your percentages a fraction.
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Re: Prasac interest rates

Post by Forktongue2 » Sat Sep 16, 2017 6:29 am

Yeah thanks. Those foreigner's are all after it now. 8% interest rates and Cambodian women. We are all emigrating now!

Cambodia! Myself and most of my friends live in England with our families. What about you?

No, on mass we stick with 1% in the UK and Europe. The money deposited In Cambodia deserves 8% due to the unstable government. I hope that reply is adequate?
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Re: Prasac interest rates

Post by bangkokhooker » Sat Sep 16, 2017 7:57 am

No. He hates anyone with the means to do anything with it.
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Re: Prasac interest rates

Post by AlonzoPartriz » Sat Sep 16, 2017 9:54 am

Forktongue2 wrote:
Sat Sep 16, 2017 6:29 am
Yeah thanks. Those foreigner's are all after it now. 8% interest rates and Cambodian women. We are all emigrating now!

Cambodia! Myself and most of my friends live in England with our families. What about you?

No, on mass we stick with 1% in the UK and Europe. The money deposited In Cambodia deserves 8% due to the unstable government. I hope that reply is adequate?
You seem utterly clueless. Default rates touted by the industry are 1%. So, 80% interest p a on rates with an incredibly low default rate. Suicide, prostitution and illegal itinerant working of the very poor, uneducated and very often desperate are what you've been supporting with your MFI investments. Who else is going to go for a real interest repayment rate of 60 - 80% per annum.
Do some bloody reading on the subject in other places than investment news. Or just admit you don't give a shit just so long as you get your 10%.
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Re: Prasac interest rates

Post by bangkokhooker » Sat Sep 16, 2017 10:01 am

More like 7.75% now. Do keep up.
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Re: Prasac interest rates

Post by AlonzoPartriz » Sat Sep 16, 2017 10:09 am

bangkokhooker wrote:
Sat Sep 16, 2017 7:57 am
No. He hates anyone with the means to do anything with it.
So I have money to invest in cryptos but no money to invest in MFIs. Smart boy this one^.
I choose not to invest in MFIs because they stink of all that I consider is wrong with the world, namely the wealthy feeding off of the poor.
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