[kiripost] The Cambodia Microfinance Association (CMA) is actively addressing critical issues within the microfinance sector, focusing on the implementation of improved lending standards and reforms that prioritize a borrower's repayment capacity over collateral. A key initiative is the prohibition of Indigenous Communal Land Titles (ICLTs) as collateral, aimed at protecting vulnerable communities from land loss. These efforts are part of a broader consultation led by the National Bank of Cambodia (NBC) and the UN, which seeks to resolve challenges like over-indebtedness and land-related financial risks.

This collaborative initiative, involving over 100 stakeholders from various sectors, is now in its active phase, working to enhance lending practices and ensure the long-term sustainability of the microfinance sector. The CMA is committed to collaborating with national and international partners to safeguard vulnerable populations and maintain microfinance as a crucial tool for economic empowerment, emphasizing responsible lending and consumer protection.

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