Microlender Prasac has been considered as being in default of more than $800 million in liabilities to funders due to the quality of its assets, according to its interim financial report, as credit risks rise across the microfinance sector amid a Covid-19-driven economic slump.
The financial report, submitted to the Cambodia Securities Exchange, shows the company’s profits falling slightly from $47 million to $37 million for the first half of the year compared to the same period a year earlier.
However, it also discloses major difficulties with the microlender’s own borrowings — the source of the money that is typically then lent on to Cambodian households.
