Cambodia’s microloan sector under scrutiny as poor drown in debt

International Finance Corporation’s watchdog is probing claims loans aimed at hard up are harming communities.

When Sam’s hard-up relatives needed money to buy a plot of land and start their own business several years ago, they turned to Sathapana Bank in Siem Reap to borrow about $20,000.

Now the Siem Reap tuk-tuk driver and his wife are struggling to make monthly repayments of about $500.

“We do not have the capacity to pay, so we missed payments,” Sam, who asked to use a pseudonym, told Al Jazeera. “We could only pay a small amount of the interest.”

In full: https://www.aljazeera.com/economy/2022/5/26/cambodias-microloan-sector-under-fire-as-poor-down-in-debt

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