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CAMBODIA - CREDIT

Country:  CAMBODIA

Project Title:  CREDIT

Project Designation:  1103

The Need:

Three decades of war, genocide, foreign military occupation, political violence and instability have left their mark on Cambodia.  The very foundations of Cambodia's social, political and economic framework were destroyed.  It is only during the last decade that the country and its people have been able to take on the arduous task of rebuilding.  Cambodia is predominately an agrarian based economy, with 85% of the people living in impoverished rural areas, relying primarily on subsistence farming and fishing.  Over 40% live on less than $1 a day.  The fast majority of locals are farmers and fishermen, yet they struggle with limited infrastructure, low yields, periodic flooding, and most experience several months of food shortages.  By starting small enterprises, they are able to supplement their low and unpredictable agricultural income.  The Cambodian Rural Economic Development Initiatives for Transformation (CREDIT) has five branches as well as eight smaller offices in rural areas, covering the provinces of Kampong Cham, Kampong Chhnang, Siem Reap, Phnom Penh/Kandal and Prey Veng.  This microfinance initiative began as an NGO program and became a licensed microfinance institution in May 2004 with the National Bank of Cambodia as Microfinance Institution CREDIT Co. Ltd.

WRC’s Response:

The purpose of this program is to provide microfinance services to poor and near poor Cambodians, to enable them to have the opportunity to develop their livelihoods and experience full and productive lives. The plan for 2007-2010 is to consolidate Credit Microfinance Institution (MFI) as a more competitive and sustainable (MFI), while also increasing the number of active clients served to 16,500 (95% women) and maintaining a strong loan portfolio. There will be at least 82,500 direct and indirect beneficiaries.

1.  Active clients (95% women) increased from 10,500 to 16,500.

2.  16,500 clients to have increased awareness and skills on credit management and business practices. 8,000 clients to have increased awareness on HIV/AIDS and health topics.

3.  16,500 active clients to have applied micro-loans to their businesses.

4.  5,500 women’s leaders to have increased awareness of group and financial management skills.

5.  MFI capacity has increased through rating assessments, staff training, having a strong senior management team and ongoing systems development.

Recent Successes:

Last report from the field - June 30, 2009

•   Active Clients (95% women) has increased to 35,065.  (This program was run very aggressively and their goals were very conservative, so the increase in active clients is far higher than initially thought).
• 5,065 clients have increased awareness and skills on credit management and business practices.  16% of clients have increased awareness on HIV/AIDS and health topics.
• 35,065 clients have applied micro-loans to their businesses.
• 1,066 women leaders have increased awareness on group management skills.  Training of leaders on how to manage groups based on policy was provided to each group leader.

• CREDIT has a total of 422 staff members.  299 staff were newly recruited and provided with training about the vision and mission of CREDIT; policies and procedures; loan products, computation and analysis; and MIS.
• 9 senior staff participated in MBA and MFB studies.
• 563 staff cumulatively (i.e. many staff received more than 1 training) received a variety of short courses covering; strategic planning, accounting, risk management, performance analysis, training of trainers, computer?OT development, basic financial analysis, asset liability management, and internal audit training.
• In-house training was provided by senior staff for 64 middle managers (some more than 1 training) on branch planning and budgeting, team building, customer service and staff motivation.

Beneficiary Story:

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