Thursday, November 8, 2007

Economy in Cambodia in danger?

Just want to point on this article in Borins Blog about the economy in Cambodia and its facing problems. His theory is that its all based on land sale - and all means a possible crisis too!

* Land and property trading is among the only small group of people buying and selling from each other without money pumped from foreign investor.
* Foreign investor do not like rising in land price because before investing in any project investor consider on many factors such as return on investment, payback period. For example if you invest too much in land and property the amount of time which you can collect your investment back is extremely long.

1 comment:

Deacon said...

I am surprised that banks in Cambodia will lend money to land speculators (for the very reason that you state so clearly). Usually banks will only lend money on property that is either improved or for the purpose of improving it.
Another issue: my understanding is that very few people in Cambodia make enough to have savings. If the banking system collapses it seems to me that it will hurt the wealthy. One would think that if a list of the banks that are engaging in this unprofessional practice were made public that they would soon lack for depositors.