When we checked today, as we do every Monday, there was only one financial institution in Cambodia that changed their interest rates. Microfinance Institution Amk decided to cut interest rates with terms of 1, 2 and 3 years, for both monthly payout and payout at maturity. Rates for fixed deposits of 3, 6 and 9 months were not affected and remained unchanged. Amk does not offer fixed deposits of more than 3 years, at least not on their website.
Amk is one of only two finance companies in Cambodia that makes no difference between deposits in Khmer riel or US dollar, when it comes to interest rates (the other one is LOLC). In other words: Amk has the same interest rates for both currencies, although of course there’s a difference between maturity and monthly payout. Here’s the table with changes:
| Term (USD or KHR) | Monthly Payout | Change | Maturity Payout | Change | ||
|---|---|---|---|---|---|---|
| 1 year | 7.50% | 7.30% | -0.20% | 8.00% | 7.80% | -0.20% |
| 2 years | 8.00% | 7.80% | -0.20% | 8.25% | 8.20% | -0.05% |
| 3 years | 8.25% | 8.00% | -0.25% | 8.50% | 8.30% | -0.20% |
Those cuts seem quite consistent with interest rates lowered by 0.20-0.25 percentage points.
Except for the maturity payout with a tenure of 2 years. In that case the rate only changes from 8.25% to 8.20%.
We’re wondering whether it’s a typo.
It was only a little over 3 months ago that Amk significantly raised their interest rates on fixed deposits, in an apparent bid to match those offered by Amret, a direct competitor. A little later, Amret raised their rates as well to outperform Amk, at least on fixed deposits in US dollars.