$8 Billion of Personal Loans Push Cambodia to Brink of Crisis

Skyrocketing micro-finance debt in Cambodia has left millions of people at risk of losing their homes, leading to fears of a potential political and economic crisis, Bloomberg News reported. With a median of $3,370 per loan, Cambodia now has the highest average for small loans in the world, according to a report from the Cambodian League for the Promotion and Defense of Human Rights and Samakum Teang Tnaut on Wednesday. Altogether, nearly 15% of the population held at least $8 billion in micro loan debt at the start of the year, the data show. "It is a big issue and it’s one that could have political ramifications," said Ou Virak, director of Phnom Penh-based think-tank Future Forum. Read more