Overview of the Cambodian Financial Market 25 Feb – 3 Mar 2019


Finance and Banking, Financial Overview / Wednesday, March 6th, 2019
BANKS
26 Feb, 1 Mar 2019

ACLEDA Bank introduced its contactless payment Visa card for customers. No other detail about the contactless payment card is available. The Bank also offers a monthly 5% cashback to its customers who use ACLEDA Unity ToanChet to pay for products they purchase at Aeon Mall 1 and 2. The promotion lasts until the end of 2019. (ACLEDA Facebook page)

28 Feb 2019

HongLeong Bank officially opened its sixth Boeung Snor Branch, located on National Road 1, in Borey Peng Houth and next to Eco Mall. The new branch is open from 8 am – 5 pm, Monday to Sunday. The Bank plans to open three more branches in Phnom Penh in the next 18 months. (Koh Santepheap newspaper, HongLeong Facebook page)

1 Mar 2019

Rural Development Bank (RDB), the state-owned bank, distributed $50 million in loans to private rice millers last year to sustain the paddy market for farmers. RDB plans to request another $50 million from the Ministry of Economy and Finance to meet the industry’s demand.

“Even though some areas are facing drought, demand for loans is still high. There are still other areas with the potential for rice production. Our loans have already been released to rice millers. Since we have better options compared to commercial banks, we need to look for more funds to meet the needs of the rice industry,” said RDB CEO Kao Tach. (Phnom Penh Post English newspaper and website)

Sathapana Bank partnered with Pi Pay to offer free of charge fund transfers between their accounts until August 31, 2019. (Sathapana Facebook page)

FINANCIAL INSTITUTIONS

25, 26 Feb 2019

LOLC MFI will become the second issuer (after Hattha Kaksekar MFI) of corporate bonds in Cambodia after obtaining an approval for bond issuance from the NBC. Unlike previous corporate bonds, LOLC offers investors not only fixed-coupon bonds but also those indexed to foreign exchange markets (forex) – with an interest rate that varies according to foreign currency exchange rates.

LOLC plans to raise 80 billion riels ($19.96 million) through the issuance of its first corporate bonds on the Cambodia Securities Exchange (CSX). The bonds will have a tenure of three years and the final coupon rate will be determined before the subscription period ends. (Phnom Penh Post Khmer and English newspaper and website, Khmer Times newspaper and website)

27 Feb, 1 Mar 2019

PRASAC MFI joined SME Finance Forum network to expand access to finance for small and medium businesses.

SME Finance Forum is a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs. It was established in 2012 by the G20 Global Partnership for Financial Inclusion, and is currently managed by the International Finance Corporation (IFC).

“More than 200 million businesses worldwide need financing to invest, grow and create new jobs. We are proud to have PRASAC join our network of 150 members who work to expand access to finance for small and medium businesses,” said Matthew Gamser, CEO of the SME Finance Forum. (Fresh News website, Prasac website, Khmer Times newspaper and website)

OTHERS

27 Feb 2019

National Bank of Cambodia’s Deputy Director General and Director of Onsite Supervision Department, Mr. Kith Sovannarith urged people and local authorities to report to NBC if any MFI charges its loan interest more than 18% p.a.

NBC also requested the local authorities to stop getting involved with financial institutions in collecting loan repayment from the people. This is to avoid people’s misunderstanding that those financial institutions may belong to the state. (Rasmei Kampuchea newspaper)

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