I read some news today which indicates that Prasac, the big microfinance institution in Cambodia, may be in a less than ideal condition. Is it time to withdraw one's fixed term deposits there? https://vodenglish.news/mfi-pressed-to- ... in-sector/

wolfcreek wrote: ↑Wed Sep 30, 2020 1:53 pm I read some news today which indicates that Prasac, the big microfinance institution in Cambodia, may be in a less than ideal condition. Is it time to withdraw one's fixed term deposits there? https://vodenglish.news/mfi-pressed-to- ... in-sector/

VOD is an anti-government publication and as such leans heavily towards Sam Rainsy's pronouncements. MFIs have long been a target for all human-rights NGOs, e. g. Licadho, CCHR, etc., claiming that predatory lending puts poor people at risk of losing their land. So-called studies have been debunked as the basis was only a 169 participants. SR even called ACLEDA a predatory lender.

Despite an increase in non-performing loans, a doubling in effect, the economic situation of the major MFIs still seems to be healthy judging from their reports published by the CSX. I suggest you read PRASAC's report to form your own opinion. I just skimmed it but I could not find a statement about the defaulting on over $800 million. Default is usually defined if payments cannot be made for a period of 90 days, which then could entail court action. I don't know where the writer got that information.

From Fresh News:
PRASAC Microfinance Reacts to Publication of a News Website on Excerpt from Interim Condensed Financial Statement
01/10/20 22:59
Phnom Penh (FN), Sep. 30 – PRASAC Microfinance Institution Plc. is honored to inform all valued customers and public that on 29 September 2020, we observed that there is a media excerpted from interim condensed PRASAC Financial Statements as at 30 June 2020. That publication seems not understand the terms and conditions of the loan agreement and does not study the impact of COVID19 pandemic and the global economic crisis which may confuse the customers and public; and it does not reflect the real situation and technical aspects of the terms and conditions of the loan agreement between lenders and PRASAC.

PRASAC would like to inform that PRASAC as well as other banks and financial institutions and all citizens have been affected by Covid-19 pandemic. For this circumstance, PRASAC requested the lenders to temporarily waive some covenants stipulated in the loan agreement. This waiver is a key driver to support PRASAC to help customers to release their burden and recover their businesses from Covid-19 and continues to offer the sustainable lending and participates in the economic recovery and development. So far, PRASAC has received almost 100% approval from lenders, there is no single lender rejecting this request or requesting PRASAC to make loan prepayment.
http://en.freshnewsasia.com/index.php/e ... 07-56.html