April 2010

As the global recession picked up, we noticed our PAR (portfolio at risk) rates creep up as the sources of income which clients had previously been able to rely on slowly dried up. More and more clients have been put in a position where they are unable to pay back their loans on time. At AMK we noticed that our delinquency problems were concentrated in certain villages. This put us in a unique position to help our over indebted clients in a relatively efficient manner. If we could come up with a plan to help these villages, we could lower our PAR rates without resorting to pressuring our clients to sell their land or houses as we have seen other MFIs do over the last year.

Recently we launched a Delinquent Client workout program where we hire teachers to train our clients to make sellable goods. We provide them with an additional loan, which we call a workout loan, to purchase equipment such as sewing machines. Then our trainer teaches them to make quality goods. We provide them with the material and they get paid on a per-piece basis.

Luckily for us, an AMK employee, Sanjaya Punyasena, has been working on a side-project Ahkun.org. Ahkun.org is a website which sells goods make by recipients of microloans that have been funded on Kiva.org. With the blessing of our board, AMK will partner with Ahkun to sell the goods made by these delinquent clients on the website. Normally, AMK receives 25% of the profits sold on the site, but we are going to give that 25% to the clients so that they will receive 50% of the profits. They will use that money to pay off their loans.

For us to stay in business we need to collect the money that we lend.  This strategy gives clients the opportunity to work out of their situation.

We hope that you will support us in this venture. Look out for products made by our clients on ahkun.org.


In the 2009, MIX Global 100 Composite rating, AMK was the top ranked MFI in Cambodia and #16 in the world based on outreach, efficiency and transparency. AMK was rated #1 in Cambodia for the third year in a row and is one of only two organizations who finished within the top 20 worldwide for the last three years.

The other four MFIs and Bank in Cambodia are AMRET was in 2nd place in Cambodia and 48th in the world, VFC was in 3rd place in Cambodia and 51th in the world, TPC was in 4th place in Cambodia and 54th in the world, and finally ACLEDA was in 5th and 95th in the world.

For the third year running, MIX presented its Composite Ranking of the performance of 955 MFIs from over 100 different countries. Based on data published on MIX Market, the MIX Global 100 Composite Ranking attempts to provide a composite picture of all the MFIs based on specific attributes related to measuring outreach, efficiency, and transparency.

AMK is a financially sound institution with the mission of “helping large numbers of poor people to improve their livelihood options through the delivery of appropriate and viable microfinance services”. It is expanding outreach to clients at the lowest possible cost, and doing it in the public arena so that others may learn from the experience.

AMK currently provides financial services covering the whole country, serving more than two hundred and twenty two thousand (220,000) clients with a loan portfolio of almost twenty five millions US dollars ($25,000,000).

AMK received a license from the National Bank of Cambodia to take deposits from the general public and now is offering some of the best rates in the country.

For further information, please visit: 2009 MIX Global 100 Composite