A solution to Cambodia’s spiraling debt crisis is urgently required, but risks uncovering deeper economic problems.
A report published in December 2018 by Lor Samnang, a researcher at the local think-tank Future Forum, asserted that only one-third of microloans surveyed went towards financing «economic activities,» like opening or expanding businesses, the main purpose of microfinance to begin with. The remainder went on either essential services, such as unexpected medical bills, or on non-profitable spending like consumer goods. Between 2009 and 2017, household consumption more than doubled in Cambodia, from $7.92 billion to $16.78 billion.
This article was written by David Hutt
To read the full article, please click on the following link: https://thediplomat.com/2020/10/can-cambodias-looming-microfinance-disaster-be-averted/
1394.352 SRY