The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $240 million to micro, small and medium-sized enterprises (MSMEs) as their working capital for expansion.

“As of the end of October 2024, CGCC has supported 2,858 MSMEs by providing credit guarantees for their loan applications, amounting to $240.59 million,” CGCC said in a press release on Wednesday.

The outstanding guaranteed loan as of October was $142.78 million while the outstanding guaranteed amount was $104.36 million, read the report.

There are 2,683 micro, small and medium enterprises (MSMEs) and 175 large businesses in Cambodia, the report said, adding that 1,247 of the businesses were women-owned.

Ros Seilava, Secretary of State at the Ministry of Economy and Finance, said that the CGCC plays a role in developing credit guarantee mechanisms that lead to the development of financing mechanisms and financial products that can contribute to economic diversification and increasing competitiveness in line with the Pentagonal strategy for growth.

“While the global economic model is changing, the CGCC has an important role to play in supporting small and medium-sized enterprises to have access to adequate financing to seize investment opportunities, increase employment and revenue aims to boost economic growth and achieve Cambodia’s vision in 2030 and 2050,” he said.

The CGCC scheme involves 28 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.

CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.

In January this year, CGCC also launched its guarantee for corporate bonds listed on the Cambodian Stock Exchange.

This marks the diversification of its guarantees beyond bank loans to guarantee corporate bonds issued by larger-sized SMEs.

Credit to: Khmer Times, published on 14 November 2024