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Interest Cap Poses Body Blow for Cambodian Microfinance

Just months ahead of local elections, the Cambodian government has ordered the microfinance industry to cap interest rates on new and refinanced loans at 18 percent a year starting April 1. Unless she refinances, that probably won’t matter to 32-year-old garment worker In Sokai, given that she took out her four-year loan just a few months ago. “I borrowed $5,000 and I bought chickens, built the house, and my husband bought a boat, fishing nets and other items,” she said of her loan,...

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