Up and down, unavoidable. The financial crisis was commencing and spread rapidly to over the world by mid 2008 to year end and then. Its effectiveness were hitting both large and small businesses even a small shop along the street will also be affected either directly or indirectly. At the late 2008, The World Financial Crisis has again started after the economic recession during The Asian Financial crisis in the late 1990s. The effect of the world financial crisis has been very strong. Some investors were ended up in debt and the businesses went bankrupt. As a result of a few giant banks decided to close their businesses. Now the impact has reached Asia and gradually Cambodia. The three main sectors contributing to the Cambodian’s economic growth have been slowed down. Those include garment sector, tourism, and real estate’s sector.In such times, government attempt to stimulate the economy through many standard macro economy policies such as tax reducing & exemption and increase government spending...etc. Nevertheless, implementation of the policies take some times, , to feel the effects and the effects may not always be satisfied. Hence, the debilitating of the world financial crisis may seem to prolong a bit longer.The whole banking sector in Cambodia including Microfinance sector have been hit by the global financial crisis. The National Bank of Cambodia (NBC) is aware of the impact and has promulgated more strategies to stabilize the economy. For instance, eliminate regulation on setting ceiling for real estate loan, reduce reserve requirement deposit of commercial banks and also increases the minimum capital requirement for banks and Finance Institutions to build trust for the public.The sudden burst of the economy caused MFIs face liquidity for cash revolving at the late 2008. That was because MFIs depend largely on funds borrowed from abroad and give little attention on the saving mobilization. Many MFI are now strategizing their operation on how to solve current loan past due when people seriously affected by the crisis lost their jobs, even their businesses. This make the MFI market more challenge and competitive.Besides the impacts of the world financial crisis, Samic has achieved remarkable results. The net loan outstanding at the end of 2008 has reached to $4,775,209, an increase of 169% from year 2007. The numbers of clients also jump from 6,294 in 2007 to 10,340 in 2008. Moreover, our portfolio at risk is still remaining low which is 0.24% at the end 2008. As the operation expanded, Samic has opened new branch at Siem Reap and set up an office at Kaep area and recruited more staffs in 2008. The total assets are $5,096,774 with the share capital of $600,000. For the year 2008, we made a remarkable income; it increased 127% compared to previous year. The achievement we have, of course really from the trust of the partners and lenders for financial and technical support and offer, and with the hard work and commitment of all level of staffs and under kindly advisory and guidance of the Board of Directors.
For the next year operation, Samic plan to sizing more both operation and share equity by extend the operation to some new potential areas and clients.
Be the management team leader and staffs representative, I wishes to thankful to partners; lenders; authorities who always contribute their trust and effort to support Samic and also special thanks to all members who always be with Samic for mutual benefit and growing together.
Truly Yours,
Mr. King Kap Kalyan
General Manager
