PHNOM PENH, Cambodia, Feb. 4, 2025 /PRNewswire/ — Since 2024, the National Bank of Cambodia (NBC) and the United Nations (UN) have led a significant consultation to address key challenges within Cambodia’s microfinance sector, including over-indebtedness, land-related financial risks, and consumer protection. This initiative, now in its active phase, engages over one hundred stakeholders from government bodies, civil society, financial institutions, and development partners to enhance lending practices and ensure the sector’s long-term sustainability.

As a key participant, the Cambodia Microfinance Association (CMA) is committed to collaborating with both national and international partners to safeguard vulnerable populations and maintain microfinance as a valuable tool for economic empowerment.

“The CMA is committed to working alongside our partners to ensure that microfinance in Cambodia continues to serve those in need. We recognize the challenges borrowers face and are actively working to improve lending practices and strengthen consumer protections. Our efforts aim to empower borrowers to make informed decisions while safeguarding their rights,” said Dith Nita, Chairwoman of the CMA.

The CMA is addressing several critical issues, including the implementation of enhanced lending standards. In partnership with the NBC and the UN, the CMA is supporting reforms to ensure that loans are granted based on a borrower’s ability to repay, rather than relying solely on collateral. A key measure involves prohibiting the use of Indigenous Communal Land Titles (ICLTs) as collateral, thereby protecting vulnerable communities from the risk of land loss.

Additionally, the CMA is supporting the expansion of the Financial Consumer Centre under the Association of Banks in Cambodia (ABC), which provides borrowers with access to dispute resolution services and enhanced protections. The CMA is also advancing financial literacy programs, particularly targeting women and rural communities through the Safe Community Finance Project, to help borrowers make informed financial decisions and reduce the risk of over-indebtedness.

“Together with our partners, we are working to build a financial sector that is inclusive and offers meaningful opportunities for Cambodia’s most vulnerable populations. Our goal is to equip borrowers with the tools needed to succeed financially while protecting them from financial risks,” added Dith Nita.

These efforts align with the United Nations Sustainable Development Goals (SDGs), particularly in the areas of poverty reduction, gender equality, and financial inclusion, ensuring that Cambodia’s microfinance sector remains a powerful engine of economic growth and opportunity.

As the consultation progresses, the CMA urges all stakeholders—investors, policymakers, regulators, civil society, financial institutions, and development partners—to unite in shaping Cambodia’s microfinance sector. Through collective action, we can ensure that vulnerable populations are protected and that microfinance continues to empower and provide economic opportunities for all Cambodians.

About CMA

The Cambodia Microfinance Association (CMA) is a professional organization dedicated to promoting responsible and sustainable microfinance practices in Cambodia. By collaborating with financial institutions and stakeholders, the CMA works to safeguard borrower rights and foster an inclusive financial sector that benefits communities nationwide.

Contact Information: Cambodia Microfinance Association (CMA), Name: Tongngy Kaing, Email: hoc@cma-network.org, Phone Number: +855 95 262 111

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