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Nation of debtors: Here's why Cambodia has a big problem with small loans

Tumbling rates are luring more and more poor farmers into debt

Cambodia
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Hun Sen, Prime Minister of Cambodia

Philip Heijmans | Bloomberg
As the sun rises beyond the Mekong River over the village of Ta Skor near Cambodia’s capital, 60-year-old farmer Sophal and his wife are hard at work trying to revive their flood-damaged corn crop.

Sophal said his harvest was once the lifeblood of his family, providing them with enough food and income to survive, but after a few bad years he began taking out small loans from various microfinance institutions (MFIs) to cover his losses. Now, he doesn’t know if he will ever clear the debt of $2,000.

“This month again has been hard because there is a lot of flooding in