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Category: Announcement

Announcement-CGCC’s New Office Relocation

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC) is pleased to inform all institutions/organizations, banks, and micro-finance institutions that are the Participating Financial Institutions (PFIs) of CGCC and the public that effective from 01 April 2022, CGCC’s office is relocated to a new place, located at the Business Development Center, 19th Floor, Building S, OCIC Blvd, Sangkat Chroy Changvar, Khan Chroy Changvar, Phnom Penh.

CGCC’s new office location: https://goo.gl/maps/GG1sR2gDWK6DEUXo6 

Should you have any inquiries, please contact CGCC via 023 722 123 or [email protected]. 

Announcement-CGCC's New Office Relocation

Press Release – CGCC launches USD 30 million Women Entrepreneurs Guarantee Scheme

Posted on by Sorn Chhorvyvatey

(Phnom Penh, 01 April 2022): Credit Guarantee Corporation of Cambodia (CGCC) is pleased to announce the official launch of the USD 30 million “Women Entrepreneurs Guarantee Scheme (WEGS)”, effective from 01 April 2022, to support women-owned businesses who lack collateral when applying for loans to enhance their access to formal loans for both working capital and business expansion.

WEGS is in line with the “Strategic Framework and Programs for Economic Recovery in the Context of Living with the COVID-19 in a New Normal 2021 – 2023” of the Royal Government of Cambodia to encourage commercial banks and microfinance institutions to increase additional lending by relaxing the credit guarantee requirements and expanding the scope of guarantees with favorable terms.

WEGS is specifically designed for women and women-owned businesses, aiming to narrow the gap between the supply and demand for financing by providing a higher guaranteed coverage of 80% and a lower guarantee fee for all sectors with favorable credit guarantee features. This scheme is eligible for all types of loan facilities including term loans, overdrafts, trade facilities, etc. WEGS is the third credit guarantee scheme offered by CGCC. As of the end of March 2022, CGCC has supported more than 300 businesses, of which 30% are women-owned​ businesses. WEGS is available for download from https://bit.ly/3LqV5TV.

CGCC is the first credit guarantee corporation in Cambodia, established by a sub-degree of the Royal Government of Cambodia in September 2020, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. CGCC’s main mission is to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises.

For more information, please contact CGCC via 023 722 123, or visit CGCC’s official website www.cgcc.com.kh​.

Download: Women Entrepreneurs Guarantee Scheme_PR_ENG

CGCC’s Newsletter Issue 01

Posted on by Sorn Chhorvyvatey

Are you looking for credit guarantee comprehensive information??? Now you can obtain the easy-understanding credit guarantee information, an important part of financial literacy, with CGCC’s newsletter.

Our Newsletter Issue 01 is covered on credit guarantee’s news & information from October to December 2021. Click here to read and download: CGCC’s Newsletter Issue 01

 

 

 

 

 

 

 

 

 

 

 

Press Release of Virtual Seminar on “Credit Guarantee – Benefits & Opportunities to Support SME Development”

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC) is organizing a virtual seminar on “Credit Guarantee – Benefits & Opportunities to Support Small and Medium Enterprises (SME) Development” today with support from the Ministry of Economy and Finance, Asian Development Bank (ADB), and the United Nations Capital Development Fund (UNCDF). The seminar brings together relevant stakeholders including the Government, Development Partners, Financial Institutions, and business representatives to discuss the benefits and opportunities of using credit guarantees to support business survival and expansion.

The extent to which credit guarantees can contribute to restoring the economy depends on the lenders’ and borrowers’ perspectives toward credit guarantees. The seminar, therefore, focuses the discussion on their perspectives toward credit guarantees. All speakers shared a common view that lack of collateral is one of the main challenges for businesses to access formal loans. They agreed that credit guarantees can support banks and Micro-Finance Institution (MFIs) to lend out more to businesses, especially those who lack collateral.

The seminar also digs into stakeholders’ ongoing efforts to improve SME access to finance for the economic re-opening in Cambodia. The Government has introduced many policy interventions to support SME access to finance. In addition, relevant stakeholders have spared​ efforts which include, among others, increasing financial literacy, introducing innovative financial solutions, and upgrading financial sector infrastructure. The panelists demonstrated their commitment to continue supporting SMEs’ access to financial services.

Prominent speakers in this seminar include the President of Federation of Associations of SMEs of Cambodia (FASMEC), Vice President of Cambodia Women Entrepreneurs Association (CWEA), President of Young Entrepreneurs Association of Cambodia (YEAC), Chairman of Cambodia Microfinance Association & CEO of AMK Microfinance, CEO of Canadia Bank, Deputy Director General of General Department of Policy of Ministry of Economy and Finance, and Senior Financial Sector Specialist from the ADB, and Senior Regional Technical Advisor from UNCDF, and CGCC’s management. This seminar attracted more than 300 participants from various institutions – Government, development partners, financial institutions, and business communities.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses. As of 10 December 2021, CGCC has provided guarantees for 173 loans with a total amount of over USD 20 million.

Phnom Penh, 16 December 2021

Credit Guarantee Corporation of Cambodia

Announcement of CGCC’s guarantee fees is no longer subject to Value Added Tax (VAT) effective from 05 November 2021

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC) is pleased to inform banks and micro-finance institutions that are the Participating Financial Institutions (PFIs) of CGCC that effective from 5 November 2021, CGCC’s guarantee fee is not subject to Value Added Tax (VAT) after receiving the confirmation from the General Department of Taxation of the Ministry of Economy and Finance. 

CGCC would like to extend our appreciation to the PFIs who have utilized CGCC’s credit guarantee to provide guaranteed loans to support businesses so far. 

Should you have any inquiry, please contact CGCC via 023 722 123 or [email protected]. Thank you.  

Announcement of CGCC’s guarantee fees is no longer subject to Value Added Tax (VAT) effective from 05 November 2021
Announcement of CGCC’s guarantee fees is no longer subject to Value Added Tax (VAT) effective from 05 November 2021

Press Release: $50 million Co-Financing Guarantee Scheme launched by Credit Guarantee Corporation of Cambodia to Support SMEs

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC) is pleased to announce the launch of the Co-Financing Guarantee Scheme (CFGS). CFGS is specifically designed for the co-financing loans disbursed under the SMEs Co-Financing Scheme Phase II (SCFS II) of the SME Bank of Cambodia. CFGS and SCFS II are the joint efforts of the two state-owned enterprises to improve access to finance for SMEs. While SCFS II aims to lower SMEs’ cost of borrowing, CFGS is a guarantee scheme that will act as collateral/security for 70%-80% of the loan amount; thus, reducing the physical collateral required from the borrowers.

CGCC will launch the 1st tranche of the CFGS amounting to $50 million to guarantee loans under the SCFS II.  This scheme will support the growth of new loans in the banking sector to enable business owners to borrow from the Participating Financial Institutions (PFIs) of CGCC.  PFIs will be able to offer higher loan amounts and the risk exposure will be shared with CGCC up to 80%.

The Co-Financing Guarantee Scheme (CFGS) is the second credit guarantee scheme offered by the CGCC. CGCC launched the USD 200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support the economic recovery during the COVID-19 pandemic. As of 21st September, CGCC has assisted 85 businesses including SMEs by providing credit guarantees for their loan applications from the PFIs amounting to USD 12 million.

H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors states that “the launch of the CFGS by CGCC is timely to provide additional support to the SCFS II of the SME Bank of Cambodia for risk-sharing with the PFIs. The two facilities will complement each other to address two key issues faced by the SMEs in access to finance: (1) high cost of borrowing and (2) collateral issues.”

Cambodian-owned SMEs (>50% ownership) may approach the PFIs of CGCC or contact CGCC through 023 722 123 or [email protected] or go to www.cgcc.com.kh for more information. CGCC’s PFIs includes (in alphabetical order) ABA Bank, Acleda Bank, AMK MFI, Amret MFI, Asia Pacific Development Bank, BRED Bank, Cambodia Post Bank, CAMMA MFI, Canadia Bank, Chamroeun MFI, Foreign Trade Bank of Cambodia, J Trust Royal Bank, LOLC MFI, Phillip Bank, PPCBank, Prince Bank, RHB Bank, Sathapana Bank, and Wing Bank. CGCC looks forward to working closely with all stakeholders to support the growth of SMEs with the CFGS.

Press Release Signing of Credit Guarantee Agreement between CGCC and the 2nd Batch of Participating Financial Institutions (PFIs)

Posted on by Sorn Chhorvyvatey

Today Credit Guarantee Corporation of Cambodia (CGCC) signed the Credit Guarantee Agreement with the 2nd Batch of the Participating Financial Institutions (PFIs) comprising of (in alphabetical order) Amret Micro-Finance Institution (MFI), BRED Bank, Camma MFI, Foreign Trade Bank​ of Cambodia, J Trust Royal Bank, LOLC MFI, and Sathapana Bank. This makes the total number of CGCC’s PFIs increase to fifteen. The signing enables CGCC and the PFIs to collaborate on disbursing guaranteed loans to businesses in Cambodia.

The increasing number of CGCC’s PFIs would provide borrowers with more diverse choices of financial institutions across the country to seek financing under CGCC’s guarantee scheme. CGCC supports PFIs to disburse more loans to the borrowers, who are able to repay the loans but lack of collaterals, by providing 70% to 80% guarantees which could act as collaterals. The existence of CGCC means that borrowers now have a higher chance of getting loans from the PFIs despites lacking collaterals.

H.E. Ros Seilava, Secretary of States of Ministry of Economy and Finance and Chairman of CGCC’s Board of Directors said that “the credit guarantee mechanism is a new financial service in Cambodia that is expected to help resolve the financing challenges and bring new lending culture to banks and microfinance institutions. I would like to encourage the PFIs to seize the opportunity of partnering with CGCC to expand your customer base and market segments through the provision of new loans with the guarantees from CGCC. At the same time, to reap the long-term benefits of this credit guarantee scheme, it is very critical for the PFIs to adhere to professionalism and strengthen the governance on credit assessment and monitoring.”

CGCC launched the USD 200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support businesses including micro, small and medium enterprises, as well as large firms to enhance their access to formal loans from the PFIs for working capital, investment, and business expansion. The Scheme is available until the end of 2022 and the guaranteed loans will be disbursed through the PFIs on a “first-come, first-serve basis”. So far, 18 guarantees have been issued to PFIs under the BRGS.

Eligible borrowers may approach the PFIs for the CGCC’s guarantee schemes or contact CGCC directly via our website www.cgcc.com.kh for more information. The fifteen CGCC’s PFIs includes (in alphabetical order) Acleda Bank, AMK MFI, Amret MFI, Asia Pacific Development Bank, BRED Bank, Cambodia Post Bank, CAMMA MFI, Canadia Bank, Foreign Trade Bank of Cambodia, J Trust Royal Bank, LOLC MFI, Phillip Bank, Prince Bank, RHB Bank, and Sathapana Bank.

 

Phnom Penh, 29 June 2021

Press Release-$200 million Business Recovery Guarantee Scheme launched by Credit Guarantee Corporation of Cambodia to Support Businesses

Posted on by Sorn Chhorvyvatey

Phnom Penh, 29 March 2021

The Ministry of Economy and Finance is pleased to announce the launch of the Business Recovery Guarantee Scheme (BRGS) by Credit Guarantee Corporation of Cambodia (CGCC) today. The BRGS aims to support businesses including micro, small and medium enterprises, and large firms to enhance their access to formal loans from Participating Financial Institutions (PFIs) for working capital, investment, and business expansion. This initiative is in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during the COVID-19 pandemic.

CGCC is the first-ever credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. CGCC’s main mission is to provide credit guarantees to PFIs to support and assist financially viable businesses that lack collateral when applying for loans.

The first tranche of the BRGS will contribute to $200 million​ increase of new loans in the banking sector for business owners to borrow from the following CGCC’s PFIs i.e., ACLEDA Bank, Asia Pacific Development Bank, AMK MFI, Cambodia Post Bank, Canadia Bank, Phillip Bank and Prince Bank. The scheme will also be available at other banks and MFIs that are in the process of becoming CGCC’s PFIs. CGCC’s guarantee will act as collateral/security for 70%-80% of the loan amount borrowed from the PFIs; thus, reducing the physical collateral required from the borrowers.

H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors states that the launch of the BRGS by CGCC is timely to support businesses who plan to borrow from the PFIs during this pandemic. This milestone supports the Government’s policy to maintain sustainable and inclusive economic growth and in line with the Industrial Development Policy 2015–2025. He calls for banks and MFIs to support CGCC by being its PFIs and ensure good credit governance.

Cambodian-owned businesses (>50%​ ownership) may approach the above PFIs for the CGCC scheme or visit CGCC’s website www.cgcc.com.kh for more information. The Ministry of Economy and Finance and CGCC look forward to working closely with all stakeholders to support the growth of businesses with the BRGS.