How Microloans Betrayed Cambodians
On her bank’s loan sheets Ban Sophear looks like an ideal borrower. At forty-seven, she runs a small business buying fish on the southern edge of Cambodia’s Tonle Sap Lake and also owns some farmland. In the past Sophear borrowed a small amount of money—a microloan—to build up her business. She managed to pay it back in full, qualifying her for larger microloans, which are issued by banks that have turned lending to the poor into a lucrative business. In 2022 Sophear borrowed $3,000. She used the money for her business and to pay her son’s school fees. The interest rate is 18 percent—standard for microloans in Cambodia.… Seguir leyendo »