CAMBODIA, PHNOM PENH, Nov 10, 2010-Small and Medium enterprise and Microfinance Institutions with support from IFC, a branch of world bank on Wednesday in Phnom Penh gathered to seek ways to develop small and medium enterprises (SMEs) through providing the credits from banks, Micro financial institutions (MFIs)to expand their productivity to contribute economic growth of the country.
speaking at the national forum of between MFIs and SMEs at Koh Pich conference hall in Phnom Penh, H.E. Ouk Maly, deputy governor of the national bank f Cambodia said: “The national bank of Cambodia has been working very actively to ensure stability and well being of financial systems to support and promote national economic activities,”
She added that as of September 2010, there are 28 commercial banks and 6 specialty banks. And there are 23 micro financial institutions, 5 of which have been granted public remittance licenses, and 27 foreign credits operators working through the country.
She noted: as of the first semester 2010, total credit provided but these banking and financial establishments are about 3,870 million and there are 1.2million clients have received this credit.
“Though the size of credit has noticeable increased, the credit for small and medium enterprise is still limited,” she added.
She said: while, the national bank of Cambodia, central one who is the guardian, has been strengthening legal standard in order to carefully set standard control over banking and financial establishment aiming to ensure a financial system conducive and appropriate for investment and development of small and medium enterprise sector.
SMEs expressed the suggestion that the banks and MFIs should drop the interest rate for SMEs because if not so, the SMEs could not survive and people’s living conditions will not be upgraded.
They also suggested to the government to have real national committee to facilitate the financial system for helping the SMEs. SMEs is the life of the improving the condition, the SMEs added.
In 2015, Cambodia will join to implement the effectiveness of ASEAN Free Trade Agreement Areas (AFTA), How Can Cambodia could compete with other countries because the no barrier for trade and products. But Cambodian SMEs now met difficulties to expand its productivity, a representative of SMEs asked the forum. Cambodia will be market for foreign products, he said.
Source: according DAP