PRASAC was a former credit component of PRASAC’s project funded by the European Union and implemented by three ministries of the Royal Government of Cambodia.

The project started in 1995 to rehabilitate and support agricultural sector in six provinces around Phnom Penh i.e. Kompong Cham, Kompong Chhnang, Kompong Speu, Takeo, Prey Veng, and Svay Rieng. PRASAC’s project phased out in December 2003.

To ensure the access to financial services to rural communities and micro-enterprises, PRASAC’s Project Steering Committee made a strategic decision to transform its credit component into a licensed MFI. In March 2002, the transformation was started by creating PRASAC Credit Association as credit operator registered with the National Bank of Cambodia (NBC).

In 2003, a trust fund called Cambodia Rural Development Foundation (CRDF) and PRASAC Staff Company were established to facilitate the transformation. With two initial shareholders, PRASAC was established by registering with the Ministry of Commerce as a private limited liability company in August 2004 and got its license from the NBC in November 2004 to legally provision financial services to rural communities and micro-enterprises.

To finalize its transformation, PRASAC started to identify and negotiate with investors since 2005 in order to replace the temporary shareholders i.e. CRDF. In 2007, PRASAC completed its transformation by replacing CRDF with new five shareholders such as BIO (Belgian Investment Company for Developing Countries), DGC (Dragon Capital Group Limited), FMO (The Netherlands Development Finance Company), LOLC (Lanka ORIX LEASING Company Ltd), and Oikocredit. Particularly, PRASAC received a permanent license from NBC in December 2007.

MILESTONE

1995 - 1999:
PRASAC I, three EU funded rural development projects in six provinces, with three different credit components.

2000 - 2003:
Extension as PRASAC II, combined to one project, one credit component.

2000:
First strategic decision to create a sustainable institution beyond the closure of PRASAC II project.

2001:
HO and branch offices separated from PRASAC II, with separate management but still as a part of the project.

2002:
Creation of PCA (PRASAC Credit Association), registered with the NBC in March 2002 as Rural Credit Operator.

2003:
Two initial shareholders were created, a Trust Fund called CRDF created by PRASAC II and PRASAC Staff Company created by staff members.

2004:
Registered as PRASAC MFI Ltd with Ministry of Commerce as a private limited liability company and received license from NBC.

2005:
The credit fund was transferred from EC to the government and finally to PRASAC MFI Ltd as Subordinated Debt.

2006:
The commercialization process was to seek for equity investment participation from commercial and social investors.

2007:
PRASAC completed its transformation by replacing CRDF with new five shareholders, BIO, DGC, FMO, LOLC, and Oikocredit. And, PRASAC received a permanent license from NBC in December 2007.

2008:
PRASAC increased its capital to 15 billion riels from six shareholders. PRASAC was extending its financial services throughout the country.

2009:
PRASAC selected Oracle FLEXCUBE Universal Banking to modernize its MIS to build competitive advantages, offer more diversified ranges of products and prepare for the next level.