In October 2018, OeEB signed a long-term credit line of USD 10 million to PRASAC Microfinance Institution. The funds are dedicated to financing MSME in Cambodia.
|Project name||PRASAC Microfinance Institution|
|Region||Southern and Eastern Asia|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 10 million|
FMO, Cordiant, Turkish Demir-Halk Bank, Norfund, OFID, BIO, DEG, Swedfund, E.Sun Commercial Bank, Bank of East Asia
The credit-line facilitates financing for micro, small and medium-sized enterprises (MSMEs) in Cambodia. It is estimated that the share of MSMEs makes up to 99% of the total amount of the private-sector. MSMEs are crucial for the situation on the labour market of the country, rated as "least developed" by the OECD.
The credit-line enables local enterprises to access financing and to undertake investments in one of the poorest countries of the world. OeEB's funds therefore contribute to strengthening the country's private sector as well as to securing and creating jobs.
PRASAC is the largest microfinance institution in Cambodia with one of the most extensive branch networks. Prior to the credit line signed in 2018, OeEB provided USD 10 million to PRASAC in 2013 as part of a USD 60 million credit line arranged by Dutch FMO as well as USD 10 million in 2016.