The business objectives of PRASAC MFI Ltd
are to carry out activities of a
micro-finance institution, by providing
financial services such as credit services
(group loans and individual loans) and
savings (savings and time deposit) services
to rural communities, households and small
and medium size enterprises.
The objectives shall be achieved by strict
adherence of high professional and moral
standards, transparency and good governance.
PRASAC II had agricultural, rural
infrastructure, community development,
institutional strengthening, and credit and
micro-enterprise components. The
implementing agencies on behalf of the Royal
Government of Cambodia ( RGC ) were the
Ministry of Rural Development (domestic
water supply, community development), the
Ministry of Agriculture, Fisheries and
Forestry (sustainable agricultural
productivity), the Ministry of Water
Resources and Meteorology (irrigation
schemes), and the Rural Development Bank
(credit facility).
PRASAC II programme was formally closed in
December 2003. However, the Financing
Agreement (FA) between the EC and the RGC
remained valid until end of December 2004,
which enabled EC to extend its Technical
Assistance up to the same period. The main
task for this assistance was to finalize the
transformation of PCA into a licensed PRASAC
MFI Ltd. It started in 2001 with gradual
transformation into a semi-independent
microfinance operator under the name PRASAC
Credit Association (PCA), registered by the
NBC as a Rural Credit
Operator.
In August 2004,
a new limited liability company PRASAC MFI
Ltd was registered with the MoC
(Certificate No.: 1126 issued on 12.8.04).
It has two initial shareholders – CRDF (a
NGO registered with the MoI ) and Staff
Company Ltd.
PRASAC obtained its
license from the Central Bank (the National
Bank of Cambodia (“NBC”)) to conduct
business as a micro-finance institution in
the Kingdom of Cambodia as set out in
Central Bank’s register No. 10 dated 15
November 2004. This license was expired on 1
December 2007.
The renewal of its
indefinite period of license from National
Bank of Cambodia was obtained on 14
December, 2007. ..Click
here to view the license
The operations, assets and liabilities of
PCA were with effect per 1.1.2005
permanently and irrevocably transferred to
PRASAC MFI Ltd with a MoU between the EC and
the RGC, co- signed by PRASAC MFI Ltd. With
another MoU regarding the Funds (seed
funds and retained earnings) the ownership
has as per 1.1.2005 been transferred from
the EC to the RGC. A condition for the
transfer is that the funds are made
available for PRASAC MFI Ltd as perpetual
subordinated credit facilitating ongoing
operations and sustained access to credit
for the rural poor. A separate Subordinated
Debt Agreement between the RGC and PRASAC
MFI Ltd was signed with effect from
1.1.2005.
