Co-Financing Guarantee Scheme for Tourism
CFGS-TR aims to support the recovery and survival of businesses in the tourism sector which was impacted by the Covid-19 pandemic. CFGS-TR is in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during and after the COVID-19 pandemic.
Benefits of CFGS-TR
- Supporting SMEs in tourism sector survival and economic recovery during the COVID-19 pandemic in line with Government's policies.
- Acting as collateral/security for 70%-80% of the loan amount borrowed from the PFIs, making SMEs in tourism sector more bankable.
- Helping SMEs in tourism sector access to financing and improving financial inclusion in Cambodia
- Sustaining SMEs in tourism sector operation during COVID-19 outbreak and providing capital investment for business expansion
- Serving as a policy tool for long-term growth of SMEs in tourism sector.
- Diversifying and sharing risks with PFIs, allowing more loans to be approved for SMEs in tourism sector.
Priority Sectors
Agriuculture
- Growing and cultivation of crops
- Livestock farming
- Aquaculture
Industry
- Agro-processing
- Food manufacturing and processing
- Waste recycling
- Production of goods for the tourism sector
- Manufacturing of local consumable goods
- Manufacturing of finished products, spare parts, or assembling parts
Services
- Transportation and logistics
- Digital and ICT
- Tourism
- Education
Noted: *Non-Priority Sectors are those sectors besides the sectors listed above. Non-Priority Sectors are also eligible for the BRGS.
Eligible Borrowers
For loans to be qualified for the CFGS-TR, the borrowers must fall into the following criteria:
The Borrower must be a majority Cambodian-owned business, shareholding of more than fifty (50) percent.
The Borrower must produce a business registration issued by appropriate government authorities.
The Borrower who is a non-registered SME must proceed with the registration after the guarantee is approved. If the borrower remains a non-registered SME, an additional guarantee fee of 0.5% per annum of the guaranteed amount will be imposed on every anniversary of the guarantee.
All Borrowers should be financially viable.
How to apply for CFGS-TR?
Step 1:
Borrower need to apply for a loan under CFGS-TR from any mutual Participating Financial Institutions (PFIs) of CGCC and SME Bank of Cambodia.
Step 2:
After approving the loan using their own appraisal method, PFIs shall submit the Guarantee Application Form to CGCC for guarantees not more than 60 days from the approval date.
Step 3:
CGCC shall review the loans and Guarantee Application to decide whether to approve the guarantee or not. In the case the guarantee is approved, CGCC shall issue a Letter of Guarantee and billing to the PFIs.
Step 4:
CGCC shall review the loans and Guarantee Application to decide whether to approve the guarantee or not. In the case the guarantee is approved, CGCC shall issue a Letter of Guarantee and billing to the PFIs. In case the Tourism Recovery Co-financing loan drawdown is rejected by the SME Bank of Cambodia, the Letter of Guarantee issued by CGCC will become invalid.
CFGS-TR Scheme Features
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