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AFP Unsustainable growth and lack of effective client protection in Cambodia’s microfinance sector have increased borrowers’ debts and led to the confiscation of their land when they can’t repay loans, according to a report by two Cambodian human rights NGOs. Much of the growth has led to widespread over-indebtedness with borrowers’ land titles serving as collateral, said “Right to Relief: Indebted Land Communities Speak Out,” a 22-page report that examines the effects of microfinance lending in 14 communities in eight provinces across Cambodia, all of which are struggling with overwhelming levels of microloan debt. Microfinance institutions (MFIs) in Cambodia charge high interest rates, require land titles as collateral, and target poor clients who are vulnerable to land loss, the report says.

Koh kongChea sereyKrang tbaengChi khor kraomWorld bank international finance corporationCambodian microfinance associationMinistry of economyBanking association of cambodiaPhay siphan or national bankCambodian leagueIndebted land communities speak outEquitable cambodiaHuman rightsKampong speuWorld bankInternational finance corporation