Well, we still have LOLC and Kredit. Both are still paying 8% interest (or more).

armchairlawyer wrote: ↑Sat Dec 28, 2019 12:48 pm

Doc67 wrote: ↑Sat Dec 28, 2019 12:29 pm
I think the loan rates at Prassac are nearer 20%. Isn't that the legal limit? So, at 8% deposit that's a nice spread. But, if the new owners can bring in money at 2% and lend it at 20%, then that's surely better than paying locals 8%.

The legal maximum is 18%. The spread is fine. The risk is in the decade of rapid growth, and now competitive lending. NPLs could spiral if disposable income declines, eg from factory or construction lay-offs. That said, the typical major high-risk factor in banking is commercial real estate lending and the Cambodian MDIs do not do that. They do, however, have very high loan to deposit ratios.

Thanks for your imput… belated Merry Xmas

A guy I know who works in a top position with one of the microlenders told me since they introduced the cap (which I thought was 13%, but I'm probably wrong), it's been though business. He said even the NB was opposed to it, but HE pushed it to look good for the little people. However, this has inadvertently pushed the poorest (with little collateral) to borrow from loan sharks at a much higher interest rate. He says the sector is now very difficult because of the cap, so they're all fighting to lower operational costs.

Again, this is according to him.

Sale of Cambodian micro finance stake : LOLC likely to make disclosure this week
5 January, 2020
LOLC Holdings Plc is likely to make a formal disclosure early this week on the sale of its 70% stake in Prasac Microfinance Institution Ltd., Cambodia, market sources revealed.

Korea’s KB Kookmin Bank is to buy LOLC’s Cambodian microfinance arm for a staggering $ 603.4 million or Rs. 108.5 billion, subject to regulatory approval, according to international media reports.

Reports said, its Board has agreed to buy 70% stake in Cambodia’s PRASAC Microfinance Institution for $ 603.4 million from LOLC. PRASAC Microfinance is the No. 1 microfinance deposit-taking institution, taking up over 40% of market share in Cambodia with 177 branches. A report in Korea Herald stated that KB Kookmin will close the deal within three months, after due diligence and approval from financial authorities in Korea and Cambodia.

The deal is expected to allow KB Kookmin to consolidate its consumer banking network in the Southeast Asian nation. Operating six bank branches, KB Kookmin earned preapproval in Cambodia for the acquisition in May. KB Kookmin said it plans to buy the remaining 30% stake in the institution at least two years after the transaction.
https://www.sundayobserver.lk/2020/01/0 ... osure-week

Wasn’t there a poster who claimed that Kookmin swindled him of his hotel a while back?

What ever happened to that story?

newkidontheblock wrote: ↑Mon Jan 06, 2020 8:03 am Wasn’t there a poster who claimed that Kookmin swindled him of his hotel a while back?

What ever happened to that story?

I think it had a heart attack...

LOLC confirms US$ 603Mn Cambodian deal
January, 7, 2020

Sri Lanka’s LOLC Holdings yesterday (6) stated that it has entered into two agreements with Kookmin Bank, to sell its Cambodian sub-subsidiary for 603 million US dollars.

In a stock market disclosure the company noted that its subsidiary LOLC International Ltd. of Singapore on 6 January along with other minority shareholders of PRASAC Microfinance Institution Ltd. of Cambodia entered into a Share Purchase Agreement and a Shareholders Agreement with Kookmin Bank, the largest commercial bank in South Korea for the sale of PRASAC’s entire shareholding.

This is subject to receiving final approval from the National Bank of Cambodia (NBC) and the Financial Services Commission of the Republic of Korea. PRASAC is the largest microfinance institution in Cambodia, the company added.

LOLC International which holds 70% stake in PRASAC will receive $ 603 million for the sale of its stake in two tranches. Proceeds of $ 422 million will be received upon receipt of approval from NBC and the balance $ 181 million in 2022.

PRASAC was LOLC’s first foreign investment in 2007. The group also operates microfinance firms in Myanmmar, Philippines, Indonesia, Pakistan, Zambia and Nigeria including LOLC Cambodia PLC, the fourth largest microfinance company in Cambodia.
http://bizenglish.adaderana.lk/lolc-con ... dian-deal/