On 17 September, 2024, Credit Guarantee Corporation of Cambodia (CGCC) and the Ministry of Agriculture, Forestry and Fisheries (MAFF) signed a Memorandum of Understanding (MoU) on  Credit Guarantee Services for the Development of Modern Agricultural Cooperatives (ACs) presided over by H.E. Dith Tina, Minister of MAFF, and H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, at MAFF.

The MoU will allow both institutions to achieve common goals in supporting SMEs, especially the modern ACs on agriculture development, and supporting CGCC to improve financial inclusion in Cambodia. At the same time, this cooperation will positively affect Cambodia’s agriculture sector by promoting broader access to formal finance.

H.E. Minister welcomed and was pleased to witness the signing MoU between MAFF and CGCC to jointly develop modern ACs, which is the priority of the government’s policy in the agricultural sector to equip the technical foundation, production according to market demand, good quality, reduce production costs and economic efficiency.

H.E. Secretary of State and Chairman of CGCC expressed his congratulations to the MOU between MAFF and CGCC, which is a very important for the cooperation between both parties to join hands to promote the development of modern ACs in Cambodia by increasing the productivity and efficiency of agricultural production and use the Royal Government’s credit guarantee mechanism to improve access to finance for the modern ACs in order to support Cambodia’s economic growth.

Agriculture is the priority sector in obtaining the credit guarantee through CGCC’s Participating Financial Institutions (PFIs). As of end of August 2024, CGCC provided guarantee on more than 2600 accounts, in total guaranteed loans USD 224 million, in which 87 accounts are the businesses in the agriculture sector, approximately USD 15 million.