Cambodia’s micro-loans accused of ‘predatory’ lending
Two prominent civil society groups in Cambodia have released a report detailing predatory practices by local microfinance institutions (MFIs), including coerced land sales.
The joint report, released on Wednesday by human rights group, Licadho, and land rights group, Sahmakum Teang Tnaut (STT), spans 10 communities in four provinces and the capital, Phnom Penh. The report includes cases of abuse, which paint an unflattering image of MFIs.
While microfinance loans were meant to be a social enterprise to lift Cambodians out of poverty, the report argues that instead micro-loan entities are taking advantage of borrowers while making massive profits.
Andrew Nachemson
