欢迎来到VOA在线收网 www.voa365.com
当前位置:VOA NEWS > VOA慢速英语 > AS IT IS >

AS IT IS 2017-03-29 Will High Cost of Small Loans Hurt Cambodians?

2017-03-29 07:06来源:未知

音频下载

The Cambodia Microfinance Association (CMA) told members in Phnom Penh Thursday, that they would need to cut costs and improve efficiency in order to survive. (Photo. R. Carmichael / VOA)
The Cambodian government has ordered a limit on interest rates on small loans. The decision comes before local elections are set to take place in June.

 

The 18 percent limit on the microfinance industry interest rates takes effect on April 1.

 

Microfinance businesses operate in many developing countries. They accept deposits and provide small loans to people in the developing world.

 

In Sokai is a 32-year-old Cambodian garment worker. She recently received a microfinance loan of $5,000. She must repay it within four years.

 

“I borrowed $5000 and I bought chickens, built the house, and my husband bought a boat, fishing nets and other items,” she said.

 

She will pay interest at a rate of 22 percent a year.

 

The new legislation will not reduce her loan payments because the law has not yet taken effect.

 

Her loan is considered large for the Cambodian microfinance industry. Seventy percent of microfinance industry, of MFI, loans are under $500.

 

Sokai had not heard of the new law. But it has caused a lot of concern among the private microfinance businesses in Cambodia.

 

Small loans more costly to provide, lenders say

 

Microfinance loans are usually for less than one year. Their interest rates are very high -- 30 percent or more. Microfinance industry supporters say this is necessary because the costs of servicing small, risky loans are higher.

 

The high cost of the loans has not reduced demand, however.

 

Cambodia’s microfinance industry is growing quickly. In 2015, there were 1.5 million depositors and more than two million borrowers. MFIs are in every province of the country of 15 million people.

 

Almost all the loans go to people living outside Phnom Pehn, Cambodia’s capital. Most borrowers are women.

 

The new law comes before local elections in June. A national vote is to take place in the middle of 2018.

 

Supporters of the new law say the limit is meant to protect Cambodians from paying high rates. Lawmakers also want to increase access to Cambodia’s financial system.

 

Borrowers often use their land or home as a security for the loan. They can lose their property if they are unable to pay.

 

Interest rate limits are not unusual. Many countries have them. But, the World Bank says they are becoming less popular.

 

Some industry observers, however, say the law limiting interest rates will have a negative effect. Stephen Higgins is with Mekong Strategic Partners. The company gives business advice.

 

“Ideally we shouldn’t have this cap. The interest rates in Cambodia for these small loans, they’re actually amongst the lowest in the world. And people forget that.”

 

Higgins says the cost of lending for small loans is high. He says microfinance businesses need to charge a 30 percent interest rate for a $500 nine-month loan to make a small profit.

 

Opponents of the limits say microfinance businesses may stop offering loans. That, they say, will force rural people to go to moneylenders who charge much higher interest rates.

 

The Cambodia Microfinance Association (CMA) is a non-profit organization based in Phnom Penh. It supports microfinance businesses. It says its members will need to reduce costs and become more efficient in order to survive.

 

Mey Kalyan is an economist and adviser to the government. He supports the law. He says it will help protect small farmers from agriculture-related debt. He says that farmers who take out high interest loans of 30 percent or more struggle to make a profit.

 

CMA chairman Hout Ieng Tong says at least some CMA members will still offer small loans. But it is unclear whether the new interest rate limit will hurt deposits in microfinance businesses or will drive borrowers to higher-cost moneylenders.


Words in This Story

 

 

cap –n. a limit on something

 

microfinance industry –n. businesses that provide banking services like taking deposits and providing small loans to people with little income

 

(责任编辑:v365)
最新新闻
  1. 当前关注:拼多多“出海”:对标
  2. 微动态丨iPhone 14全线破发 苹果将
  3. 资讯:“二舅”UP主回应质疑:目前
  4. 特斯拉上海超级工厂一期第二阶段
  5. 苹果高管Huang回应iOS 16复制粘贴许
  6. 特斯拉8月份在北京上海等城市新
  7. 苹果宣布10月欧洲 App Store 应用和
  8. Lilium携手软件巨头Palantir展开合作
  9. 暴雪《暗黑破坏神 4》即将封测
  10. 因丰巢快递柜侵犯肖像权等,龚俊
  11. 美富豪亿万艾萨克曼与SpaceX合作
  12. 今日聚焦!碾压iPhone 14系列!曝华
  13. 当前头条:华为Mate50首发5G套装 明
  14. 即时看!iPhone 15明年或将搭载Type
  15. 全球即时:售价799元!华为Mate 50系
  16. 资讯:针对iPhone机型《王者荣耀》
  17. 每日看点!1.5K直屏+骁龙8+旗舰芯!
  18. 【独家】iPhone 14顶配速度拉胯了!
  19. 世界热点评!仅限30条!Mate50卫星通
  20. 天天微资讯!华为Mate 50系列通信壳
  21. 环球速讯:土豪金被冷落!iPhone1
  22. 世界看点:经济学家任泽平:iPho
  23. 每日速讯:工信部:鸿蒙操作系统
  24. 天天信息:鹿晗为关晓彤庆生 鹿
  25. 当前短讯!啃完华为又嚼苹果,手
  26. 天天时讯:赌王三房千金何超云获
  27. 世界看点:成立12年,中国首家上市
  28. 环球今亮点:井柏然晒秋日身穿毛
  29. 天天观热点:《奇怪的律师禹英雨
  30. 天天亮点:汪小菲张颖颖外出聚餐
  31. 世界微动态丨李政宰确诊新冠中断
  32. 世界快看点:林允儿回应《黑话律
  33. 天天视点:魔力红Maroon 5主唱被曝
  34. 全球热点评!9月20日酒泉疫情最新
  35. 环球观速讯:9月20日张掖甘州区疫
  36. 天天视点:9月20日甘肃疫情最新消
  37. 今日精选:9月20日岳阳疫情最新消
  38. 快资讯:9月20日湘潭疫情最新消息
  39. 每日资讯:2022-09-20 14:17哈尔滨疫
  40. 世界热资讯:青海昨日新增本土无
  41. 【环球时快讯】92号、95号汽油价
  42. 世界快播:9月20日杭州疫情最新消
  43. 世界视讯!官宣,iPhone即将支持《
  44. 当前关注:华为Mate 50系列5G通信壳
  45. 环球热门:比iPhone 14PM还贵!华为
  46. 当前视讯!大部分供应商将收到加
  47. 天天百事通!卢伟冰深夜疑惑:年
  48. 环球观焦点:华为Mate 50系列5G通信
  49. 环球焦点:青蛙会被水淹死吗
  50. 当前看点!OPPO K10系列荒野乱斗联名