Cambodian Banks and International Rating

Bankers say ‘Profits are up, loan portfolios are growing at a fast tick and non-performing loans are shrinking’

Moody’s, and Standard and Poor’s, two rating agencies recently downgraded two of Cambodia’s major banks, Acleda Bank and Canadia despite increased performance of both the banks from 2010 in relation to their loan portfolio sizes and the falling percentage of non-performing loans.  Mr Billmeier (vice president of Canadia Bank) commented loaning conditions allowing extra collateral other than just land titles to be used as collateral, does increase some short term risk.

 

Both Acleda and Canadia said that most of their profits were coming from lending to the export services and agricultural sectors.  In the downgrading rating agencies cited the conditions in the USA and Europe, Cambodia’s largest export market as having the potential to be detrimental upon the banks performances.

 

Despite this country head of Cambodian Public Bank, Phan Ying Tong said in an e-mail

 

“We expect the outlook for this year and 2012 to be positive… The banking sector is expected to perform better overall as most banks reported higher growth in deposits and loans and overall improvements in their financials.”

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Mekong Gardens Party Coming Soon

The new serviced apartment and condominium complex will be hosting its launch party at Mekong Gardens on the 25th of November. 

Details of the event to follow

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Property Tax

The Ministry of Economy and Finance will begin appealing to property owners to pay their taxes after too few property owners registered for tax payment by the original September 30th deadline said Mey Vann the Ministry’s Finance Director. 

The Ministry is to launch a media campaign to educate property owners and the Ministry has vowed to punish tax evaders.  A lack of transparent tax information and guidelines to help people understand has been, in part, blamed for the lack of property tax payers registering.

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