The Credit Guarantee Corporation of Cambodia (CGCC) is pleased to announce the extension of the “Business Recovery Guarantee Scheme (BRGS)” from 1 January 2023 until the scheme is fully utilized.
BRGS aims to support businesses, including Micro, Small, and Medium Enterprises (MSMEs) and Large Firms, to enhance their access to formal loans from Participating Financial Institutions (PFIs) for working capital, investment, and business expansion. BRGS, with a scheme size of USD 200 million, was first launched from 29 March 2021 to 31 December 2022. As of 31 December 2022, a total loan of approximately USD 89 million, of which, most of the loans do not have collateral, is guaranteed by CGCC under BRGS.
CGCC received the highest approval from His Excellency Deputy Prime Minister, Minister of Economy and Finance on the extension of the BRGS by updating some scheme features, including the scheme period, the definition of MSMEs and Large Firms, and the maximum loan amount for each guarantee (please visit CGCC’s website www.cgcc.com.kh for detailed information).
CGCC’s credit guarantee under BRGS will continue to act as collateral for 70% – 80% of the loan amount borrowed from the PFIs, thus, reducing the physical collateral required from the borrowers.
CGCC looks forward to working closely with all stakeholders to support the growth of businesses with the BRGS. Thank you.
Phnom Penh, 18 August 2022:Ministry of Economy and Finance (MEF) and Credit Guarantee Corporation of Cambodia (CGCC) co-organized a “Conference on Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia” presided over by H.E. Ros Seilava, Secretary of State, Ministry of Economy and Finance, and Chairman of CGCC, and H.E. Dr. Chea Serey, Assistant Governor and Director General of Central Banking, National Bank of Cambodia, with the participation of representatives from the Government, development partners, financial institutions, business associations, and business owners, especially SMEs, of more than 100 participants. The Conference aims to discuss using credit guarantees to strengthen SME’s financial inclusion, raise awareness of credit guarantees, and share experiences and lessons learned from guaranteed loan disbursements.
H.E. Ros Seilava, Secretary of State, highly appreciated today’s Conference, which is an important forum to raise awareness of the credit guarantees through the discussion and experience sharing among related stakeholders. H.E. Secretary of State said, “The Government launched the public credit guarantee scheme by establishing CGCC more than one year ago. As of July 2022, CGCC has supported the disbursement of about $57 million new loans with credit guarantees to businesses that lack collateral through the Participating Financial Institutions (PFIs). Even though this $57 million is a small amount, it is the starting of new lending practices that do not rely on collateral in Cambodia’s credit market.”
H.E. Dr. Chea Serey mentioned in her keynote address the contribution of the National Bank of Cambodia (NBC) as the regulator who plays a critical role in supervising the banking sector. H.E. Dr. Chea Serey said, “Understanding the importance of SMEs in the economy and their challenges in access to finance to the banking and financial institutions, the Government decided to establish the credit guarantees to support SMEs that lack collateral. CGCC’s credit guarantee is a good policy tool; however, SMEs should not remain laissez-faire. SMEs shall continue to improve their capacity, i.e., by leveraging technology.”
Mr. Wong Keet Loong, Chief Executive Officer of CGCC, expressed his gratitude to the Royal Government of Cambodia, who, through the Ministry of Economy and Finance, has always provided strategic guidance to CGCC to expand the credit guarantees to support the Government’s financing policy. Mr. Wong said, “As of the start of Q3 2022, CGCC has expanded its guaranteed coverages to all over the country, even in the remote provinces, thanks to the vast branch networks of CGCC’s PFIs across the country. However, more still needs to be done to improve financial inclusion for different groups of businesses in other parts of the country.”
During the conference, the representatives from CGCC’s PFIs, Canadia Bank and Sathapana Bank, shared common views on the importance of credit guarantees in supporting banks to disburse more loans to businesses, especially businesses that lack collateral. The banks’ representatives also shared their lending strategies with credit guarantees.
Two SME borrowers were invited to share their practical experiences in access to guaranteed loans with CGCC’s PFIs. Credit guarantees helped both business owners who did not have collateral to get loans for their business’s operations.
Moreover, representatives from relevant stakeholders, including the Government (a representative from the MEF), the regulator (a representative from NBC), the lender (a representative from Maybank Cambodia), the business owners (a representative from the Young Entrepreneurs Associations of Cambodia) and the credit guarantee institution (a representative from CGCC) joined the panel discussion on “Roles of Credit Guarantee in Banking and Business Sector Development.” The panelists discussed the challenges, solutions, and recommendations to improve the effectiveness of using credit guarantees to support business sector development, especially the SMEs, which are the backbone of the economy.
CGCC provides credit guarantees on business loans disbursed by banks and microfinance institutions to support potential businesses that lack collateral. CGCC serves the Government’s policy to improve financial inclusion and develop SMEs in Cambodia. For more information, please contact CGCC via 023 722 123 or 016 242 033 or visit CGCC at www.cgcc.com.kh. Thank you.
To support the Government’s policy on recovery and growth of the Tourism Sector, the Credit Guarantee Corporation of Cambodia (CGCC) is pleased to launch the “Co-Financing Guarantee Scheme for Tourism (CFGS-TR)” after the highest approval from H.E. Akka Pundit Sapheacha Deputy Prime Minister, Minister of Economy and Finance.
CFGS-TR is specifically designed to provide credit guarantees on co-financing loans disbursed by CGCC’s Participating Financial Institutions (PFIs) under the Tourism Recovery Co-Financing Scheme (TRCS) of the SME Bank of Cambodia.
CFGS-TR of CGCC and TRCS of SME Bank are the joint efforts of the two state-owned enterprises to improve access to finance for SMEs in the Tourism Sector. While TRCS aims to lower SMEs’ cost of borrowing, CFGS-TR is a guarantee scheme that will act as collateral/security for 80% of the loan amount; thus, reducing the physical collateral required from the borrowers. CFGS-TR will support new loan disbursements in the banking sector to SMEs. Meanwhile, PFIs will be able to offer higher loan amounts, and the risk exposure will be shared with CGCC up to 80%.
For more information, please contact CGCC via 023 722 123, or visit CGCC’s official website www.cgcc.com.kh.
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.
(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.
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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.
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.
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.
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.
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 millionBusiness 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.