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Author: Sorn Chhorvyvatey

Meet the Business Owner Who Received a Loan Guaranteed by CGCC

Posted on by Sorn Chhorvyvatey

My dream is to invest in a business that can contribute to people’s well-being because good health and mental well-being are essential for a good quality of life. This is the main reason why my wife and I started two businesses, ADK Rice and Muny Clinic. I established ADK Rice company because I believe that rice is the a primary food for many people, and with the increasing population and decreasing agricultural land, ensuring a stable rice supply is crucial. My wife and I jointly established Muny Clinic with the vision of providing affordable and high-quality healthcare services.

Through my experience working for a large rice exporter in Cambodia, I became aware of the challenges faced by farmers in rural areas, so I decided to start retailing rice for local consumption, called Angkor Dey Khmer. In 2021, the business expanded and evolved into ADK Rice (Cambodia), a company that produces high-quality rice that complies with food safety standards and provides farmers with a sustainable market and increased their income by contract farming supply to my company. Muny Clinic is a medical care and treatment clinic that was established in 2018 by my wife and me. We are committed to providing quality and affordable healthcare services to Cambodians, with a particular focus on treating diabetes and offering regular health check-ups to prevent serious diseases.

The goal of doing business is to develop and grow. My clinic business is no different. We want to acquire modern medical equipment to enhance the clinic’s standards and grow our business. We have decided to apply for a loan from a bank to make our dreams a reality. However, we do not have enough collateral or land title to pledge with the bank. This challenge was overcome with the help of CGCC credit guarantees, which alleviated this challenge and enabled me to get a loan from Prince Bank to purchase clinical equipment.

I obtained a CGCC guarantee on my loan not by chance, but because of the knowledge I gained from participating in the CGCC Capacity Building Program called “EPIC” series 1 of 2024 in May 2024. Through EPIC, I learned about CGCC and partner banks that can provide loans to potential businesses with a clear business plan but face challenges due to  lack of collateral. After receiving the guaranteed loan, I purchased additional medical equipment for our new clinic building, which is in line with the purpose of that guaranteed loan, business plan, and investment plan. In addition, I also plan to apply for additional loans for working capital to buy paddy rice from farmers to increase the rice production of my AKD rice in the future.

As a business owner, I acknowledge that understanding financial literacy is very important because it allows us to think in detail about investing in all aspects, such as purchasing assets to generate more income rather than buying any non-income-generating assets. On the other hand, with financial literacy, we can effectively manage human resources by taking into account factors such as the number of employees, salaries, incentives, and benefits.

Read and Download in PDF: Meet the Business Owner Who Received a Loan Guaranteed by CGCC

 

Understanding Market Structure

Posted on by Sorn Chhorvyvatey

What products or services are your business offering? Who else in the market is offering similar products or services? What is your business strategy to stay ahead of the competition? The answers to these questions relate to the market structure in which your business operates. Market structure refers to the characteristics of a market, including the number of firms, the nature of products and services, freedom of entry and exit, and so on. Market structure plays a pivotal role in the strategic decision-making of a business – how to operate and compete.

Perfect Competition

In Phnom Penh, if you wish to purchase a pure drinking water bottle to satisfy your thirst on a hot day, you have many options like Vital, Angkor Puro, Dasani, Oral, Hi-Tech, Aruna, Cambodia, etc. Despite the different branding, these products share a very similar taste and are generally priced at approximately 0.25 cents per bottle, representing the equilibrium price in this market. If sold at the same place and in the same setting, any products priced above this equilibrium price will eventually be out of the market. The customer is indifferent to switching between these products for the lowest cost. This market of pure drinking water can be a close example of perfect competition.

Perfect competition is a market structure where numerous firms offer identical products or services, and no single firm has the power to set the price. Buyers have complete information about the products and services, and the price is determined by supply and demand. Entry and exit into this market are extremely easy. The key to competing in this market is to set the price equal to the marginal cost, an additional cost for an additional output. 

It is indeed rare, if not impossible, to find perfect competition in real life. The conditions for perfect competition, where many firms offer the same products or services, buyers have all the information, and entry and exit are easy, are seldom met. However, perfect competition serves as a theoretical benchmark that helps us understand the dynamics of real-life markets.

Monopoly

When I rejoined the Ministry of Economy and Finance in 2010, I was involved in the first-ever Initial Public Offering (IPO) on the Cambodia Securities Exchange. As the first IPO in Cambodia, the listing process of Phnom Penh Water Supply (PPWSA) was challenging and time-consuming. PPSWA was eventually listed successfully in April 2012, raising around USD 20 million. Equity investment in PPWSA is considered safe because PPSWA is the only licensed water supply operator in Phnom Penh and Ta Khmao. PPWSA offers an indispensable service (clean water supply) and has no competitors in its authorized areas. PPWSA can set the price without worrying about losing customers. In other words, PPSWA is a monopoly.

Monopoly is the opposite of perfect competition. In a monopoly, there is only one seller of a particular product and many buyers. There are barriers to entry. A monopoly maximizes profit by producing outputs when the marginal revenue (an additional earning from selling one extra unit) equals the marginal cost, and by charging the maximum price consumers are willing to pay for that output. However, the pricing strategy of monopolies is usually under strict government regulation to ensure social welfare. Other firms operating in Cambodia that can be considered monopolies include Electricity of Cambodia (EDC), NagaCorp, CINTRI, and the company I am serving, Credit Guarantee Corporation of Cambodia (CGCC).

Oligopoly

If you ask Cambodian people which mobile network service they are subscribed to, chances are they are using either Cellcard, Smart, or Metfone. These are the three leading players in this industry, holding more than 90% of the market share. Cellcard, Smart, and Metfone fiercely compete with one another on all fronts—price, product innovation, and advertising. Several mobile network companies have tried entering the Cambodian market to compete with these players. Most of them withdrew, such as Beelines and QB. The mobile network industry is an oligopoly.

An oligopoly is a market in which a small number of firms dominate and compete. This industry is highly competitive, and entering it is extremely difficult. The strategy of one firm can influence the strategies of other firms. Because there are only a few players, they often cooperate to limit output and charge higher prices to maximize their shared profits. This behavior is called collusion, which refers to the cooperation among firms in an oligopoly to make joint decisions and act as if they were a monopoly.

Other oligopoly industries include grocery store chains (Lucky Supermarket, AEON Supermarket, and CHIP MONG Supermarket), the retailed petroleum industry (TOTAL, TELA, and CALTEX), and movie cinemas (Legends and Major Cineplex).

Firms operating in different market structures require different strategies to compete and operate. So, which market structure is the best? It depends. Each market structure has its pros and cons depending on the industry and the Government’s policy toward the industry.

Summary of Market Structure

Read and Download in PDF: Understanding Market Structure

 

Understanding Credit Guarantee-Interview with Participating Financial Institution (Prince Bank)

Posted on by Sorn Chhorvyvatey

1. What is Prince Bank’s perspective towards the credit guarantee schemes and why does Prince Bank partner with CGCC?

At Prince Bank, we have a clear vision of helping our customers achieve sustainable growth through comprehensive support and flexible lending options. Our strategic partnership with CGCC will bring us closer to this vision by providing entrepreneurs with better access to financing for their business expansion and growth, allowing them to operate with peace of mind. With our credit guarantee schemes, we firmly believe that our financial support will exceed our clients’ expectations.

2. How do the credit guarantee schemes benefit Prince Bank and your customers?

With the availability of credit guarantee schemes, both Prince Bank and its customers benefit from a reduced risk exposure for the bank and increased financing limits to meet business needs, regardless of the customers’ collateral availability.

3. So far, which type of loans does Prince Bank use the credit guarantees to support?

Since the inception of our partnership with CGCC, Prince Bank has utilized the credit guarantee to provide loans to customers as mentioned below:

  • Business Term Loan
  • Overdraft Loan
  • Trade Finance Facilities

4. How should the borrowers prepare themselves in order to get guaranteed loans from Prince Bank?

To borrow from Prince Bank, customers should diligently plan their business and determine their financial needs for growth. They can then consult with lending experts at any nearby Prince Bank branch for more information on available schemes. Once they have discussed and decided on a suitable scheme, they can submit a request to Prince Bank for further processing and approval based on its internal policy. CGCC will ultimately review this request for final approval on the proposed guaranteed scheme and amount, or Prince Bank will perform registration of the customer’s loan for CGCC’s guarantee after its internal approval.

5. What is the Prince Bank strategy/plan to further expand the disbursement of guaranteed loans in 2024 and also for the next year?

2024 was still a tough year for everyone, but Prince Bank is still open to lending to our customers, and we have spoken loud on our social media, website and newsagents on the availability of guaranteed schemes to help them if they don’t have sufficient collaterals for their borrowings. In 2025, we will continue our mission and commitment to provide financial support to our clients with a stronger collaboration with CGCC for existing and future suitable schemes.

Read and Download in PDF: Understanding Credit Guarantee-Interview with Participating Financial Institution (Prince Bank)

 

Job Vacancies with CGCC – Deputy Manager of Business Development (Bond Guarantee), Deputy Manager/Senior Executive of Product Development, Senior Executive of Backend Developer & Executive of Digital Marketing and Creative Contents

Posted on by Sorn Chhorvyvatey

Deputy Manager of Business Development (Bond Guarantee)

Job Overview

The Deputy Manager of Business Development (Bond Guarantee) of Credit Guarantee Corporation of Cambodia (CGCC) will support and report to the Manager of Business Development (Bond Guarantee) on CGCC’s bond guarantee matters.

Job Description

  • Assist the Manager of Business Development (Bond Guarantee) on daily operational work for the execution of the deals including:
    • Reviewing and summarizing applications and documents submitted by issuers
    • Supporting the assessment on issuers by analyzing financial statements and other documents
    • Participating in meetings and writing proposal
    • Participating in due diligence on issuers
    • Coordinating with relevant departments and underwriters during the process
  • Perform research as required for the implementation and improvement of CGCC’s bond guarantee
  • Analyze various industries for assessment and monitoring purposes
  • Assist the department in communication with ministries, regulators, and other institutions on bond guarantee-related matters
  • Maintain knowledge of laws and regulations applicable to bond issuance
  • Develop close working relationships with securities companies, potential issuers, and bond investors to expand CGCC’s bond guarantee opportunities
  • Develop close working relationships with international partners regarding bond guarantee
  • Perform other tasks as assigned by the management

Qualification

  • Master’s degree in accounting, banking, and finance or related field; a CAT (Certified Accounting Technician) is preferred
  • At least five years of working experience in the banking or securities industry, particularly in credit assessment or risk management
  • Experienced in financial statements analysis
  • Working knowledge of accounting and finance
  • Strong analytical and critical thinking skills
  • Strong multitasking skills
  • Strong verbal and written communication skills in Khmer and English
  • Ability to work effectively as a team with a sense of responsibility, flexibility, and adaptability
  • Ability to prioritize tasks, maintain timelines, and manage/plan workloads effectively
  • Competence in Microsoft Office Software

 

Deputy Manager/Senior Executive of Product Development

Key Responsibilities

  • Assist in managing and developing Guarantee products to address the needs of SMEs.
  • Assist in preparing all aspects of the product development, including design, structure, features, pricing, workflows, and approval process.
  • Assist new product launches, including product launch plans, roll-out timings, etc.
  • Conduct product training to internal colleagues and external stakeholders.
  • Conduct market research and analyze market data to provide recommendations on how to design CGCC’s products and provide CGCC’s service to meet the market’s needs.
  • Monitor and analyze sales trends and recommend marketing activities to achieve sales targets.
  • Maintain networking and collaboration with CGCC’s stakeholders, including SMEs, FIS, associations, and governmental institutions to assist the development of SMEs.
  • Undertake all other roles and responsibilities assigned by management from time to time.

Qualification Requirements

  • A minimum of bachelor’s degree holder in Economics, Finance, Business, Management, Public Administration, or other related fields.
  • At least three years of working experience in product development in the banking/financial industry.
  • Proven coordination, communication, interpersonal and diplomatic skills.
  • Ability to work effectively as a team with a sense of responsibility, flexibility, adaptability, and ability to learn and work under pressure.
  • Ability to prioritize tasks effectively, maintain timelines, and manage/plan workloads effectively.
  • Strong verbal and written communication skills in Khmer and English.
  • Competence in Microsoft Office Software

 

Senior Executive of Backend Developer

Key responsibilities

  • S/he shall design, implement, and maintain server-side application logic.
  • S/he shall develop RESTful APIs and services to support front-end requirements.
  • S/he shall optimize application for maximum speed, scalability, and performance.
  • S/he shall manage and ensure the performance, security, and responsiveness of APIs.
  • S/he shall collaborate with front-end developers to integrate user-facing elements.
  • S/he shall troubleshoot and debug complex application issues.
  • S/he write clean, maintainable, and well-documented code.
  • S/he stay up-to-date with backend development best practices and emerging technologies.
  • S/he shall provide general technical support and other assigned tasks

Qualification Requirements

  • Bachelor’s degree in Computer Science, Information Technology, or related field (or equivalent work experience).
  • Proven experience as a Backend Developer or similar role.
  • Proficient in backend programming languages (e.g., Python, Node.js, Java).
  • Experience with frameworks like Express.js, or similar.
  • Strong knowledge of databases (e.g., MySQL, PostgreSQL, MongoDB) and data modeling.
  • Familiarity with cloud platforms (AWS) and microservices architecture.
  • Experience with version control systems (e.g., Git).
  • Strong problem-solving skills and ability to work collaboratively in a team environment.
  • Knowledge of security best practices for web applications.
  • The ability to express complex technical concepts effectively, both verbally and in writing.
  • The proven ability to work independently and be self-motivated with minimal supervision and assistance
  • Strong verbal and written communication skills in both Khmer and English.
  • Competence in Microsoft Office Software.
  • Knowledge in research and data analysis is a plus.

 

Executive of Digital Marketing and Creative Contents

Key Responsibilities

  • Propose, develop, and design creative digital contents, including posters, graphics, video motion, and written contents for promoting CGCC’s services and products.
  • Plan, schedule, and publish creative content that aligns with CGCC’s marketing strategies and objectives.
  • Track monthly social media performance by using analytic tools and provide report insights for improvement.
  • Manage and update CGCC’s website content to ensure accuracy, relevance, and user-friendliness.
  • Work with external developers to troubleshoot and enhance website performance.
  • Track website performance using analytic tools and provide monthly reports to guide improvements.
  • Work closely and support Marketing and Business Development Division of CGCC, including events & outreach, new product/services launching to produce engaging contents and contribute toward set objective.
  • Identify trends and new features available on social media to push CGCC’s social appearance.
  • Conduct market research where possible.
  • Perform other duties as assigned by management

Qualification Requirements

  • Bachelor’s degree in marketing, Communications, Graphic Design, Digital Media, or a related field.
  • At least 2 years of experience in digital marketing, content creation, social media management, or graphic design.
  • Proven skill graphic design tools including Adobe Photoshop, Illustrator, Indesign.
  • Familiarity with social media platform (Facebook, LinkedIn, Telegram, YouTube…)
  • Familiarity with website management, and website monitoring.
  • Ability to prioritize tasks effectively, maintain timelines, and manage/plan workloads effectively.
  • Strong verbal and written communication skills in both Khmer and English.
  • Competence in Microsoft Office Software.
  • Skills in photography and videography are plus.

 

CGCC Sharing on Green and Inclusive Finance in Capacity Building Training on “Better Implementation of Gender Responsive Green Industrial Policies in Cambodia” in Kampot

Posted on by Sorn Chhorvyvatey

On 16th​ January 2025 in Kampot Province, Ms. Pin Manika, Manager of Marketing and Business Development participated as a guest speaker in the Capacity development, Training of Trainer on Better Implementation of Gender Responsive Green Industrial Policies for National Level, co-organized by the Ministry of Industry, Science, Technology & Innovation (MISTI) and Ministry of Women’s Affairs (MOWA) and United Nations Industrial Development Organization (UNIDO) and supported by the  BMZ of Government of Germany. This training aimed to strengthen the capacity development and participation relevant line-ministries to develop and implement practically on Gender responsive policies in Green Economy and Green Industrials.

 

Through this training, Ms. Pin Manika participated as a guest speaker in the session 5 focusing on Key investment in gender responsive green industry and shared about the credit guarantee mechanism to support the Green and Inclusive Finance.

Participants who attended this training gained essential skills to promote a gender-sensitive green economy and foster knowledge exchange. CGCC is also proud to share the importance of credit guarantee mechanisms for contributing in the development of green economic policies and green industries, which are essential for the sustainable development of Cambodia.

CMA and CGCC Forge Strategic Partnership to Enhance Financial Inclusion

Posted on by Sorn Chhorvyvatey

The Cambodia Microfinance Association (CMA) and the Credit Guarantee Corporation of Cambodia (CGCC) have officially signed a Memorandum of Understanding (MoU) to collaborate on promoting sustainable financial inclusion across Cambodia.

This official partnership was announced during the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing” held here on Jan. 23 under the presidency of Ros Seilava, Secretary of State at the Ministry of Economy and Finance and Chairman of CGCC.

According to a joint press release, AKP received this morning, this strategic partnership aims to foster the growth of banking and financial institutions (BFIs) and support micro, small, and medium enterprises (MSMEs) through capacity development, digital financial services, and enhanced financial literacy.

Under the MoU, CMA and CGCC will collaborate to strengthen and develop the capacity of MSMEs, BFIs, and stakeholders through training, workshops, seminars, and research studies.

This partnership will also focus on advancing financial literacy and digital finance and promoting the development of green finance in Cambodia. Both organisations are committed to leveraging their resources to ensure the successful implementation of various initiatives to boost the financial sector’s contribution to the country’s economic development.

Oknha Hout Ieng Tong, a CMA representative, said this partnership marks a significant step toward advancing financial inclusion in Cambodia.

“By combining our expertise and resources, we can create a more robust financial ecosystem that supports the growth of MSMEs and contributes to the country’s sustainable development,” he said.

No Lida, CGCC’S Chief Executive Officer, said that there are opportunities for CGCC, CMA, and CMA’s members to use credit guarantees to increase lending to underserved businesses across the country.

“This MoU is a testament to our shared commitment to fostering economic growth and sustainability in Cambodia,” he said.

The MoU is effective for three years from the date of signing and outlines a framework for cooperation in achieving the shared objectives.

Both parties are dedicated to ensuring the confidentiality of shared information and successfully executing agreed initiatives. AKP

Credit to: Khmer Times, Published on 24 January 2025

 

CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing

Posted on by Sorn Chhorvyvatey

On 23 January 2025, Ministry of Economy and Finance and Credit Guarantee Corporation of Cambodia (CGCC) co-organized the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing”, presided over by H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, high representative of H.E. Deputy Prime Minister, Minister of Economy and Finance, at Hyatt Regency Phnom Penh.

CGCC Annual Seminar was organized to wrap up and celebrate accomplishments, review the progress of public credit guarantee schemes, award top-performing financial institutions, and launch new public credit guarantee product, as well as collect inputs from related stakeholders​ on innovating credit guarantee mechanisms to support green finance and develop small and medium enterprises in Cambodia. Approximately, around 150 participants from public institutions, domestic and international development partners, banks and microfinance institutions, securities firms, business associations, and related stakeholders attended the seminar.

Through this Annual Seminar, H.E. Ros Seilava officially launched the “Wholesale Guarantee Scheme of CGCC”, to provide guarantees on existing business loans of Participating Financial Institutions (PFIs) to share risk with PFIs and reduce the risk weight on the part of the exposure that is guaranteed by CGCC. According to the Prakas Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions of the National Bank of Cambodia on 29 June 2023, exposures denominated in riel or currency that are clearly and unconditionally guaranteed by the Royal Government of Cambodia, including guarantees by credit guarantee schemes established by the Royal Government of Cambodia, are zero percent risk-weighted.

In addition, H.E. Ros Seilava granted the Ministry of Economy and Finance’s Outstanding Awards to participating financial institutions including Prince Bank, Sathapana Bank, Canadia Bank, LOLC Microfinance Institution, and ABA, that have disbursed the most guaranteed accounts and a Special Award to Phillip Bank for maintaining the best Asset Quality in Guaranteed Loans in 2024.

H.E. Ros Seilava mentioned “Ensuring sustainable socio-economic development and building resilience to climate change are strategic goals of the Royal Government of Cambodia, with a priority on increasing sustainable and green finance to increase financial flows towards green investment and the green economy, and promoting climate-resilient and low-carbon public investment, etc. Investing in climate change not only can bring financial returns, but also socio-economic benefits. Therefore, I encourage relevant parties to focus on cooperation with the Royal Government in examining the feasibility of developing financial products, designing and implementing projects, and developing support mechanisms to increase the provision of green finance in Cambodia.”

In this annual seminar, there were also the Signing Ceremony on Credit Guarantee Agreement between CGCC and 2 new Participating Financial Institutions (PFIs), the Small and Medium Enterprise Bank of Cambodia (SME Bank) and Shinhan bank (Cambodia), and the Signing Ceremony on Memorandum of Understanding (MoU) between CGCC and Cambodia Microfinance Association (CMA) to improve financial inclusion and the financial literacy for SMEs.

Another objectives of the CGCC annual seminar is to create a discussion platform for sharing knowledge and experiences through a panel discussion on “Innovation of Credit Guarantee to Promote Green Financing”, shared by Mr. Kittipong Buranasiri , representative of Thai Credit Guarantee (TCG), Ms. Lee Hyeok, representative of Korea Credit Guarantee Fund (KODIT), Mr. Mohamed Azman Mohamed Taufik, representative of Credit Guarantee Corporation of Malaysia (CGC), and Mr. Nhim Soriya, representative of CGCC, moderated by Mr. Shakeel Ahmad, Deputy Resident Representative of UNDP Cambodia.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. CGCC has launched 5 individual guarantee schemes, 17 portfolio guarantee​ agreements, and bond guarantees, as well as the Entrepreneurship Program Initiative of CGCC (EPIC). As of 31 December 2024, after 4 years of operations, CGCC has approved credit guarantees on 3,139 accounts of business loans, amounting to USD 256.58 million across the country. Those businesses provide jobs for more than 30,000 employees.

Credit to: KIRIPOST, Published on 24 January 2025

CMA and CGCC Partner to Enhance Financial Inclusion and Promote Green Financing in Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Cambodia Microfinance Association (CMA) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Memorandum of Understanding (MoU) to advance financial inclusion and sustainability across Cambodia. The partnership, formalized during the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing,” presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, aims to drive financial literacy, promote digital finance, and foster green financing initiatives.

Read More: Cambodia Microfinance Association Catalyzes Global Efforts in Sustainable, Inclusive Finance at 2024 AGM

Strategic Focus on Capacity Building and Green Finance

Under the three-year agreement, CMA and CGCC will collaborate on a range of initiatives to strengthen the capacity of micro, small, and medium enterprises (MSMEs), banking and financial institutions (BFIs), and stakeholders. Key areas of cooperation include:

  • Capacity Development: Joint training programs and workshops for BFIs, MSMEs, and stakeholders to enhance skills and knowledge.
  • Financial Literacy: Increasing awareness and accessibility of financial services among Cambodians.
  • Digital Financial Services: Promoting innovative solutions to improve financial inclusion.
  • Green Sector Initiatives: Encouraging sustainable practices in the financial sector to support environmental objectives.

“This partnership marks a significant step toward advancing financial inclusion in Cambodia. By combining our expertise and resources, we can create a more robust financial ecosystem that supports the growth of MSMEs and contributes to the country’s sustainable development,” said Oknha Hout Ieng Tong, CMA representative.

Enhancing Access to Underserved Businesses

The partnership will leverage CGCC’s credit guarantees to expand access to financing for underserved businesses, supporting their growth and integration into Cambodia’s financial system.

“We are excited to collaborate with CMA to enhance financial literacy and provide better access to financial services. This MoU is a testament to our shared commitment to fostering economic growth and sustainability in Cambodia,” said Mr. No Lida, Chief Executive Officer of CGCC.

By focusing on financial literacy and green financing, the partnership aligns with Cambodia’s broader economic development goals. Both organizations have committed to ensuring the confidentiality of shared information and the effective execution of initiatives outlined in the MoU.

Credit to: Cambodia Investment Review, Published on 24 January 2025

CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing”

Posted on by Sorn Chhorvyvatey

On 23 January 2025, Ministry of Economy and Finance and Credit Guarantee Corporation of Cambodia (CGCC) co-organized the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing”, presided over by H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, high representative of H.E. Deputy Prime Minister, Minister of Economy and Finance, at Hyatt Regency Phnom Penh.

CGCC Annual Seminar was organized to wrap up and celebrate accomplishments, review the progress of public credit guarantee schemes, award top-performing financial institutions, and launch new public credit guarantee product, as well as collect inputs from related stakeholders​ on innovating credit guarantee mechanisms to support green finance and develop small and medium enterprises in Cambodia. Approximately, around 150 participants from public institutions, domestic and international development partners, banks and microfinance institutions, securities firms, business associations, and related stakeholders attended the seminar.

Through this Annual Seminar, H.E. Ros Seilava officially launched the “Wholesale Guarantee Scheme of CGCC”, to provide guarantees on existing business loans of Participating Financial Institutions (PFIs) to share risk with PFIs and reduce the risk weight on the part of the exposure that is guaranteed by CGCC. According to the Prakas Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions of the National Bank of Cambodia on 29 June 2023, exposures denominated in riel or currency that are clearly and unconditionally guaranteed by the Royal Government of Cambodia, including guarantees by credit guarantee schemes established by the Royal Government of Cambodia, are zero percent risk-weighted.

In addition, H.E. Ros Seilava granted the Ministry of Economy and Finance’s Outstanding Awards to participating financial institutions including Prince Bank, Sathapana Bank, Canadia Bank, LOLC Microfinance Institution, and ABA, that have disbursed the most guaranteed accounts and a Special Award to Phillip Bank for maintaining the best Asset Quality in Guaranteed Loans in 2024.

H.E. Ros Seilava mentioned “Ensuring sustainable socio-economic development and building resilience to climate change are strategic goals of the Royal Government, with a priority on increasing sustainable and green finance to increase financial flows towards green investment and the green economy, and promoting climate-resilient and low-carbon public investment, etc. Investing in climate change can not only bring financial returns, but also socio-economic benefits. Therefore, I encourage relevant parties to focus on cooperation with the Royal Government in examining the feasibility of developing financial products, designing and implementing projects, and developing support mechanisms to increase the provision of green finance in Cambodia.”

In this annual seminar, there were also the Signing Ceremony on Credit Guarantee Agreement between CGCC and 2 new Participating Financial Institutions (PFIs), the Small and Medium Enterprise Bank of Cambodia (SME Bank) and Shinhan bank (Cambodia), and the Signing Ceremony on Memorandum of Understanding (MoU) between CGCC and Cambodia Microfinance Association (CMA) to improve financial inclusion and the financial literacy for SMEs.

Another objectives of the CGCC annual seminar is to create a discussion platform for sharing knowledge and experiences through a panel discussion on “Innovation of Credit Guarantee to Promote Green Financing”, shared by Mr. Kittipong Buranasiri , representative of Thai Credit Guarantee (TCG), Ms. Lee Hyeok, representative of Korea Credit Guarantee Fund (KODIT), Mr. Mohamed Azman Mohamed Taufik, representative of Credit Guarantee Corporation of Malaysia (CGC), and Mr. Nhim Soriya, representative of CGCC, moderated by Mr. Shakeel Ahmad, Deputy Resident Representative of UNDP Cambodia.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. CGCC has launched 5 individual guarantee schemes, 17 portfolio guarantee schemes, and bond guarantees, as well as the Entrepreneurship Program Initiative of CGCC (EPIC). As of 31 December 2024, after 4 years of operations, CGCC has approved credit guarantees on loans amounting to USD 256.58 million benefiting approximately 3,139 businesses across the country. Those businesses provide jobs for more than 30,000 employees.