'MFIs are privately owned, not government' message
'MFIs are privately owned, not government' message
Rama's twitter feed is reporting that the above message has appeared prominently on the front page of several Khmer newspapers today, with the suggestion that it's government decreed. Separately several prominent Khmer journalists have reported receiving the same message via SMS from a government source yesterday.
What's going on with MFIs that is prompting this defensiveness? Trouble ahoy?
What's going on with MFIs that is prompting this defensiveness? Trouble ahoy?
The same goes for banks. Unless MFi start lending to building companies and promoters they are essentially more stable than banks, with their loan portfolios spread over a multitude of small borrowers.
I suspect there is a correlation between certain MFIs/banks and their loan collectors having secondary jobs in commune/village chief type roles (predominantly CPP). Usually this type of person is the best 'enforcer' in a local community, and there is a blurred line between whether the loan holder is repaying the bank/MFI, or this "CPP" guy directly. Given credit has been thrown out like confetti by multiple institutions historically (pre-Credit Bureau, and I think you can argue "Post" also), some of these bad debts are now struggling to be paid and the goons collecting are getting a bit more hands on - but nobody sees them as the friendly "bank" guy, just their local CPP rep.
There was indeed a prakas from NBC stipulating all banks & MFIs to state publicly/all channels, that they are privately owned. Sathapana next to change logo? (& see example statement) http://www.sathapana.com.kh/
There was indeed a prakas from NBC stipulating all banks & MFIs to state publicly/all channels, that they are privately owned. Sathapana next to change logo? (& see example statement) http://www.sathapana.com.kh/
Meum est propositum in taberna mori,
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
That's interesting Spigzy. How bad is the bad debt issue in these organisations and what impact could it have on deposits held?
Yeah, easy to figure out that the homeland guy who's had his moto/car/house repossessed won't want to throw his/her vote to the guy who did the repossessing. To me it's more political grand gesturing than financial.
- Lucky Lucan
- K440 Knight Captain
- Reactions: 761
- Posts: 22525
- Joined: Fri Mar 04, 2011 12:24 pm
- Location: The Pearl of the Orient
I think it's because some disgruntled debtors have been petitioning the PM to be let off loans.
Romantic Cambodia is dead and gone. It's with McKinley in the grave.
- ផោមក្លិនស្អុយ
- Daylight, I need Daylight !?!
- Reactions: 687
- Posts: 4720
- Joined: Sun Feb 05, 2017 4:42 pm
Interesting post Spigzy, I hadn't realised that there was a credit bureau in Cambodia. I've just had a look on their website and see that some big banks are not members. Like ANZ, Acleda, Campu... this shows the current value of the service - if the big boys don't want to play then the service must be bad but also if the big boys won't play then it'll really struggle to improve.Spigzy wrote:I suspect there is a correlation between certain MFIs/banks and their loan collectors having secondary jobs in commune/village chief type roles (predominantly CPP). Usually this type of person is the best 'enforcer' in a local community, and there is a blurred line between whether the loan holder is repaying the bank/MFI, or this "CPP" guy directly. Given credit has been thrown out like confetti by multiple institutions historically (pre-Credit Bureau, and I think you can argue "Post" also), some of these bad debts are now struggling to be paid and the goons collecting are getting a bit more hands on - but nobody sees them as the friendly "bank" guy, just their local CPP rep.
There was indeed a prakas from NBC stipulating all banks & MFIs to state publicly/all channels, that they are privately owned. Sathapana next to change logo? (& see example statement) http://www.sathapana.com.kh/
I can't imagine how hard it is to provide any kind of decent bureau service here with the variety of spelling of names, discrepancies between family books, ID cards and given name/DOB.
But back on topic, I've also heard rumblings of increased bad debt. Interesting to hear your view of enforcer/CPP correlation. But surely this would only be an issue with low value / 'micro finance' debt. The higher value stuff... better educated folks will be able to easily separate the two, no?
But then again rich or poor - they each have only one vote... *cough, cough*
What I'm waiting for is the big savers, with $10k-250k who have fixed term deposits in the microfinances for the 10%+ annual interest who plan to pull everything out this year, or before the big election. I know of 2 already who are just waiting for the term to be up then withdrawing everything and sending money back to a stable country.
That, along with bad debt could screw the places like AMK over right royally,
That, along with bad debt could screw the places like AMK over right royally,
Massive stalker
- Felgerkarb
- Sir Felgerkarb, Kt Pb
- Reactions: 240
- Posts: 9140
- Joined: Mon Jun 18, 2007 3:22 am
- Location: Castle Felgerkarb, Felgerkarbia (Formerly Preah Vihear)
- Contact:
Some firms that do business in the provinces link loans with party affiliation.
I have also heard of the increasing bad debt problem and the looming election threatening stability of certain firms.
I have also heard of the increasing bad debt problem and the looming election threatening stability of certain firms.
====================
Why are the gods such vicious cunts?
Where is the god of tits and wine?
Why are the gods such vicious cunts?
Where is the god of tits and wine?
The capital ratios of the big MFIs seem too high if anything. They need to lend more of their money. Not sure how they are managing the big interest rates with such high deposit rates.
-
- I have Cheap Mobile Internet
- Reactions: 0
- Posts: 363
- Joined: Sat Feb 09, 2008 8:31 am
Get your cash out asap and avoid the rushpedros wrote:What I'm waiting for is the big savers, with $10k-250k who have fixed term deposits in the microfinances for the 10%+ annual interest who plan to pull everything out this year, or before the big election. I know of 2 already who are just waiting for the term to be up then withdrawing everything and sending money back to a stable country.
That, along with bad debt could screw the places like AMK over right royally,
Self fulfilling prophecy...
I'm reckoning if the MiFis go belly up so will the banks and that will be the end of Cambodia.
While there are still jobs for the lendees to pay their debts off then nothing untoward will happen.
People have been bemoaning MiFis for years. And they will continue to.
While there are still jobs for the lendees to pay their debts off then nothing untoward will happen.
People have been bemoaning MiFis for years. And they will continue to.
pew, pew, pew, pew!
I was wondering what the back story to all this was after reading the article in today's papers.
HE reporting that unscrupulous opposition politicians were telling people that if they win, they will cancel all CPP debt. And HE saying that the CPP is NOT linked to that debt. Sounds like Ranariddh's games. Interesting that HE also talks about the chances of another party winning. Can't remember hearing that for a while.
So, the CPP have been using MFIs to buy votes, and now it's coming back and biting him in the ass?
Mobile Firms Told to Spread Message: MFIs Not State-Run
https://www.cambodiadaily.com/news/mobi ... un-125665/
HE reporting that unscrupulous opposition politicians were telling people that if they win, they will cancel all CPP debt. And HE saying that the CPP is NOT linked to that debt. Sounds like Ranariddh's games. Interesting that HE also talks about the chances of another party winning. Can't remember hearing that for a while.
So, the CPP have been using MFIs to buy votes, and now it's coming back and biting him in the ass?
Mobile Firms Told to Spread Message: MFIs Not State-Run
https://www.cambodiadaily.com/news/mobi ... un-125665/
Prime Minister Hun Sen on Wednesday pulled the country’s mobile operators into his aggressive campaign to clear up any confusion about the relationship between the government and microfinance institutions (MFIs), ordering them to send audio and text messages telling subscribers that MFIs were private entities.
Mr. Hun Sen said earlier this month that many people were under the false impression that debt accrued from microfinance loans was state money and could be forgiven by the government, a view he said was being pushed by rival political parties and causing resentment toward the ruling party.
“We now launch a campaign for a whole year, so all media outlets need to broadcast and say, ‘All microfinance institutions are private, not state-owned,’ starting from tomorrow,” Mr. Hun Sen told a crowd of ministers, professors and students at a graduation ceremony on Wednesday at Phnom Penh’s National Institute of Education.
He also called on mobile phone companies to spread the same message, noting that Cellcard had already sent out audio messages. Smart had sent a text message Wednesday’saying, “All microfinance institutions in Cambodia are private, not state-run so the people should not be confused.”
...
“There are certain politicians that lie to [people]…to get their vote, and they spread the lie, and the people at the grassroots level need education so they don’t believe that lie,” she said.
Prince Norodom Ranariddh, the recently reinstated leader of the royalist Funcinpec party, told reporters in 2015 that he would make a sacred promise to the spirits at Wat Phnom to “cancel the debt of all the people.”...
...
“They have said both openly and in whispers that once they are elected, they will eliminate everyone’s debt,” he said. “They have to destroy the banks in order to liberate the debtors. Otherwise, if they don’t do it, it means they have lied to the people.”
...Earlier this month, Mr. Hun Sen ordered officials to arrest any politicians caught saying they could cancel people’s debts accrued through MFIs.
“The political parties should not play around with this. If it’s considered to be an obvious crime, arrest them at the scene, because they cheat,” he said.
Last edited by Abou-Gor on Fri Feb 24, 2017 12:16 am, edited 1 time in total.
-
- Similar Topics
- Replies
- Views
- Last post
-
- 6 Replies
- 3383 Views
-
Last post by Felgerkarb
Tue Oct 31, 2023 9:31 pm
-
- 3 Replies
- 490 Views
-
Last post by Srey Bourque
Thu Mar 16, 2023 2:25 pm
-
-
Thank you COVID-19, a millionaire’s message
by Bong Burgundy » Thu May 14, 2020 11:53 pm » in Cambodia Speakeasy - 47 Replies
- 13425 Views
-
Last post by citizenK
Mon May 18, 2020 12:32 pm
-
-
-
Three star general steals Chinese state-owned Kampot Special Economic Zone land
by Bong Burgundy » Sun Oct 25, 2020 4:48 pm » in Cambodia News - 12 Replies
- 3958 Views
-
Last post by Visser
Mon Oct 26, 2020 11:59 am
-