New MFI enter Cambodia market to Boost SME

By Sok Lak

As the Cambodia economy growth and the increasing of Small and medium enterprise (SME), a new Microfinance Institution, Sonatra Microfinance entered the market to provide more loan for Small and Medium Enterprise (SME) to boost Cambodia economy.

“The mission of Sonatra Microfinance Institution is to contribute government to reduce poverty in order to increase citizen’s income by providing loan to people earn less income, to SME to complete their capital in doing business,” Oknha Sorn Sokna, Chairman of Sonatra Microfinance Institution said during open ceremony of Sonatra Mincrofinance Institution on October 20.

The Microfinance is created in form of Joint-venture between local investors and foreigner investors in which 70 percent of capital is local investors and 30 percent is foreigner investors, East Wing Singapore and Grand Corporation Japan.

“Even though the joint of investment from foreign is only 30 percent, but the basic investment of institution is strong, because both companies provide load for institution till US$50 million in low interest,” Sokna mentioned.

H.E. Ouk Maly, Deputy Governor of National Bank of Cambodia, said that Sonatra Microfinance Institution will play important role in Cambodia finance system to provide service to SME in order to contribute developing country’s economy and poverty reduction.

Currently, there are 29 microfinance institution get license including 7 which receive deposit license. “If the Sonatra Microfinance Institution have good performance in three years, it also get license for deposit,” she added.

In first half year of 2011, the total loans which provided from microfinance equal to 2,062 million riel to 1,002,926 people and it increase 49 percent and 13 percent prospectively compare to the same period in 2010. They collected 280 thousand riel from 162,171 customers which increase 3 times and 38 percent prospectively compare to the same period in 2010.