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Interview given to BBC by Guy De Launey
8 June, 2006
© 2006 BBC, All Rights Reserved

Three Cambodian Microfinance Institutions have Won Awards for Financial Transparency

(Cue/ Three Cambodian microfinance institutions have won awards for financial transparency. They were among five winners in an annual competition run by a World Bank-affiliated organisation. Microfinance institutions are playing an increasingly important role in developing countries. And in Cambodia they're bucking a trend for widespread corruption. From Phnom Penh, Guy De Launey reports)

Cambodia's problems with corruption are well-known. But the Consultative Group to Assist the Poor says the country's microfinance institutions provide an example for the rest of the world to follow.

There were 175 entries for the awards from a total of 57 countries. Cambodian MFI's dominated the proceedings - with four merit awards as well as the majority of the top prizes.

The judging panel concluded that Cambodian MFI's are among the best managed in the world - and leaders in disclosing financial information. Borrowers understand how much they have to pay back - and savers are confident that their money is safe.

One of the winners, Acleda Bank, has also received an assessment from Moody's Investor Services that ranks it as one of the strongest banks in the region.

Adam Sack is from the World Bank's Mekong Private Sector Development Facility. He thinks the awards will help to reduce levels of corruption in Cambodia

GD_WSB_MFI_Sack
Adam Sack
This group have committed themselves to operate profitably for clients who are poor and the poorest, and also to do so in a way that rejects corruption. And as we've seen in Cambodia and many other countries, transparency is one of the best weapons in the fight against corruption.

The MFI's already have five hundred thousand customers in a country of thirteen million. They hope the international stamp of approval will provide reassurance to would-be clients with a long-standing distrust of the banking system.

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