Crop failures from erratic weather and wildfires are leading farmers to take out loans to survive, with their land — and therefore livelihood — as collateral.
from its all-time high of $4.9 billion in 2019 to just over $184 million in 2021, according to government figures.
Motorists ride past a Sonatra Microfinance Institution Plc branch in Phnom Penh, Cambodia, on Friday, July 31, 2018."The numbers didn't make sense. In a country perceived as developing, that struggled with tourism due to Covid, the MFI sector was still growing at 30% each year, and the average loan went from around $3,000 to $4,000," Pilorge said.
In the capital Phnom Penh, she added, she commonly meets people working seven days a week to pay off spiraling MFI loans. The U.N.'s Ian Fry called on the international finance community to "take strong heed of the recommendations found in this report and seriously rethink their approach to microfinance."
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