How did Prasac MFI, Ltd. get started?
We were a former credit component of the “PRASAC Project,” which was 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. The PRASAC project concluded in December 2003. What happened to the Prasac Project? To ensure the access to financial services to rural communities and micro-enterprises beyond the closure of the project in 2002, the PRASAC Project Steering Committee made on a strategic decision to transform its credit component in a licensed MFI. In March 2002, the transformation 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.
