The International Monetary Fund (IMF) praised Cambodia’s steps to increase financial inclusion.
IMF managing director Christine Lagarde spoke at the “Belt and Road Forum for International Cooperation” in Beijing on Friday and noted the Kingdom’s tripling of MFIs through public-private partnerships involving mobile finance.
“Many of these citizens had never had a bank account. Now they can save for the future and perhaps even start a business of their own,” she said.
“These are ideas that can work everywhere. But countries have to be willing to partner and learn from each other.”
Real Estate Capital Flows Steady
An IMF report released in December found capital continued its steady flow into the construction sector.
Construction investment in the real estate sector reached over $1.36 billion in the first quarter alone.Real estate investment in Cambodia has benefited from 7 to 8 per cent of return of investment.
“Credit growth to the real estate sector, a key transmission channel linking credit and economic growth, has averaged around 35 percent since 2016, driven by few banks,” the report stated.
It also reported that developers are offering easier lending conditions for domestic buyers to enter the market and stricter monitoring measures needed to be enacted in the future.
The banking sector has seen much growth much in part due to the real estate boom in the Kingdom.
“Investments in property and development projects are the key drivers of the growth of banks,” said PPCBank president Shin Chang Moo.