During the 1970s and 1980s, Cambodia was torn apart by the aftermaths of the civil war and was slowly rebuilt during the 1990s through foreign financial support. In particular, microfinance contributed significantly to the socio-economic reconstruction of the country.
Shareholders in AMK, one of Cambodia’s largest deposit-taking microfinance institutions, have confirmed the sale of 80.01% of the Company’s shares to SCSB. Current shareholders, Rural Impulse Fund II, Proparco, and the Cambodian Laos Development Fund (CLDF) have exited their shareholdings completely, while current majority shareholder, Agora Microfinance has divested part of its shareholding.
Persistently high portfolio growth, increasing average loan sizes and stagnating client numbers for the last decade have raised concerns of overheating in the Cambodian microfinance market, and whether there is an over-indebtedness crisis around the corner.
Data from the Credit Bureau of Cambodia (CBC) reveals that 50% of loans disbursed in 2017 were for refinancing, with 25% refinanced earlier than maturity and 30% refinanced at over 130% of the original loan amount.