On 17 September 2022, CGCC and Maybank Cambodia co-organized the “SME Building Capacity and Capability (BCC) Programme” at Maybank Tower, participated by more than 50 SME entrepreneurs to provide business support instruments and technical advisory based on international best practices to support SME growth, productivity and innovation, as well as enhance competitiveness for SMEs.
Mr. No Lida, Deputy CEO of CGCC, remarks on the importance of this program for SMEs beyond the cooperation between CGCC and Maybank Cambodia, and Mr. Duk Sarak, Head of Community Financial Services of Maybank Cambodia, relayed the opening remark for the event. SME participants had the opportunity to learn about the topic of “Business Registration in Cambodia” from SokSiphana & Associates, “The Importance of Financial Discipline for SMEs” from Acclime Cambodia, “Access to Finance and Guarantee Scheme” from Maybank Cambodia.
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
Upon the collaboration on providing loans with credit guarantee, on November 2021, CGCC and Maybank Cambodia also co-organized the Business Forum on “Supporting SME Businesses in Cambodia” to discuss more details about the possibility of collaboration on how to support SMEs for greater access to finance despite collateral issue and the support of SME’s capacity Building and long-term growth.
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
On 13 September 2022, CGCC organized the 11th Board of Directors Meeting, at CGCC’s office, under the chairmanship of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, and the chairman of the CGCC’s Board of Directors, with the presence of all members of the Board of Directors.
11th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)
The agendas of this 11th Board of Directors Meeting included: (1) CGCC Progress Report, (2) PFI Application, (3) Strategic Business and Budget Plan for 2023, (4) Amendment to Finance Manual, (5) Credit Risk Policy, and (6) Other agenda
CGCC’s Board of Directors Meeting is regularly organized to review, endorse, and approve CGCC’s activities and progress, especially the credit guarantee schemes, to ensure transparency and efficiency of CGCC.
“I’m Financially Literate Program” was successfully launched by Sathapana Bank, Co-sponsored by Khmer Enterprise, Manulife Cambodia, and Credit Guarantee Corporation of Cambodia (CGCC). The first cohort of this program was organized on 03 & 04 and 10 & 11 September 2022 to provide non-financial services to SMEs and MSMEs and especially women in business.
More than 30 Entrepreneurs and business owners attended the first cohort, and shared their experiences as well as related financial issues, and they also had the opportunity to learn more about entrepreneurship, prepare financial statements for Business, understand loans with banks and choose the right loan for their businesses.
This training program is specifically designed to provide practical skills and experience related to financial literacy and business management skills, as well as access to business networks that can drive business growth for entrepreneurs, especially women entrepreneurs.
CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” first cohortCGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” first cohort
From 29 August to 02 September 2022, CGCC team led by Mr. No Lida, Deputy CEO of CGCC, visited provincial branches of selected participating financial institutions (PFIs) to discuss with the management and staff of the selected PFIs the implementation of CGCC’s credit guarantee schemes. The selected PFIs in 3 provinces including Kampong Speu province: Canadia Bank and AMK Microfinance Institution; Preah Sihanouk province: ABA Bank, LOLC Microfinance Institution, Sathapana Bank, Canadia Bank, AMK, and Acleda; and Kampot Province: ABA Bank, Acleda Bank, AMK, and LOLC.
The discussions with CGCC PFIs’ provincial branches in these 3 potential provinces provided opportunities for both CGCC and PFIs to enhance mutual understanding of credit guarantees and opportunities for PFIs to increase lending to borrowers that lack collateral when requesting loans, especially where the provinces are the potentials in tourism sector, CGCC got the chance to bring awareness of the newly launched scheme, Co-Financing Guarantee Scheme for Tourism Sector, to enhance the support for businesses in tourism sector in getting guaranteed loans from CGCC’s PFIs.
Through these face-to-face discussions with more than hundreds of PFIs’ provincial managements and staffs, CGCC had such a great opportunity to learn directly about the implementation of credit guarantees by these selected PFIs provincial branches as well as their comments and feedback on CGCC’s credit guarantee schemes. CGCC and PFIs will continue to strengthen cooperation in providing guaranteed loans to business owners.
On 01 September 2022, Ministry of Economy and Finance and CGCC organized a Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector” in Kampot Province, in collaboration with the Ministry of Tourism, through the provincial department of tourism, and SME bank, which was participated by more than 50 business owners in the tourism sector.
This seminar was presided by Mrs. Chin Sopheakla, Deputy Director of Kampot Provincial Department of Tourism, Mr. No Lida, Deputy CEO of CGCC, and Mr. Neav Sokun, Chief Operation Officer of SME Bank.
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”
Through this workshop, SMEs in the tourism sector, including resorts, hotels, guesthouses, restaurants, etc., were informed about the benefits of getting guaranteed loans, in response to the lack of collateral when applying for loans for the purpose of improving and recovering their business that are impacted by COVID-19 pandemic.
SMEs also learned about government’s financial supporting mechanisms on favorable loans conditions such as low-interest rate through SME Bank and guaranteed without collateral by CGCC.SMEs can request for guaranteed loans for their tourism related businesses through CGCC’s “Co-Financing Guarantee Scheme for Tourism Sector” that act as collaterals for business loans in the tourism sector through “Tourism Recovery Co-financing Scheme” of SME Bank.
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”
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.
Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”
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.”
Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”
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.”
Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”
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.”
Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”
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.
Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”
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.
Phnom Penh, Cambodia, 11 August 2022 – Credit Guarantee Corporation of Cambodia Plc. (CGCC) and Credit Bureau (Cambodia) Co., Ltd. (CBC) signed a Memorandum of Understanding to strengthen financial inclusion for women and SMEs through the promotion of a credit guarantee support scheme and the adoption of data analytics in credit decision-making by financial institutions across Cambodia. The cooperation between CBC and CGCC will expand access to credit, by providing more transparent loan assessment to women and SMEs.
As the only credit reporting service provider in the country, CBC provides credit history information bridging the information asymmetry between borrowers and lenders, thus, reducing transaction costs of lending and promoting access to finance. Over the years, CBC’s credit reporting services and a portfolio of data analytics solutions have eased barriers to credit for many Cambodians and reduced industry-wide credit risk management. CBC’s role as a key financial infrastructure is significant to maintaining financial sector stability for the country.
CGCC and Credit Bureau partnership to promote SME and women’s access to finance
CGCC provides credit guarantees on loans disbursed by participating financial institutions to support viable businesses and individuals that lack collateral when seeking access to finance. Especially, in the context of the economic slowdown from the pandemic, support from CGCC has been instrumental in driving economic growth, fueling employment, and stabilizing the economy.
Mr. Oeur Sothearoath, Chief Executive Officer of CBC said, “This partnership marks a milestone in enhancing financial inclusion to women and SME owners as well as assuring a fair, reliable and data-driven approach in enabling access to finance for in the country. This collaboration between CBC and CGCC shall strengthen our financial infrastructure and streamline the much-needed support for SMEs.”
CGCC and Credit Bureau partnership to promote SME and women’s access to finance
Mr. Wong Keet Loong, Chief Executive Officer of CGCC said “With this MOU, CGCC will be able to build the credit profile of guaranteed loans by using CBC’s K-score as a reference for credit rating of our guaranteed borrowers. When PFIs report the conduct of guaranteed loans in their monthly reporting to CBC, this data would be useful to capture the profile of Cambodian SME borrowers with guaranteed loans. This would further facilitate access to financing for SMEs.”
CGCC and Credit Bureau partnership to promote SME and women’s access to finance
While it is mandatory for every lender to check the credit report of borrowers from CBC during loan assessment, CGCC and CBC will collaborate to enable the financial institutions to use digitalization, advanced reporting, and data analytics tools from CBC to conduct an accurate risk assessment of borrowers and monitor their performance.
Through this collaboration, the two institutions also commit to cooperating in financial education and awareness activities to promote financial inclusion in the country.
About CBC
Since 2012, CBC is the leading provider of financial information, analytical solutions, and credit reporting services to financial institutions and consumers in the Kingdom of Cambodia. CBC assists customers in managing the risks and rewards of commercial and financial decisions through a range of solutions, including Consumer Credit Reports, Commercial Credit Reports, K-Score, Data Analytical Reports, Portfolio Monitoring Services, Portfolio Review Services, and Customized Solutions. CBC serves a member base of 180 financial institutions with credit histories of more than 7 million borrowers.
About CGCC
CGCC is a state-owned enterprise operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF), and officially incorporated in November 2020. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion. As of the end of July, CGCC has supported 591 businesses by providing credit guarantees for their loan applications, amounting to USD 57.4 million equivalent. CGCC has provided the most guarantee to SMEs, which is accounted for 96% of the total businesses receiving the credit guarantee from CGCC.
CGCC and Credit Bureau partnership to promote SME and women’s access to finance
From 04 July to 08 July 2022, CGCC team led by Mr. No Lida, Deputy CEO of CGCC visits PFIs (selected participating financial institutions) branches to discuss with the management and staff of the selected PFIs the implementation of CGCC’s credit guarantee schemes. The selected PFIs in 3 provinces including Battambang province: AMK Microfinance Institution, ABA Bank, Acleda Bank; Banteay Meanchey province: ABA Bank, Canadia Bank; and Siem Reap Province: ABA Bank, Acleda Bank, AMK Microfinance Institution, Sathapana Bank, and Maybank (Cambodia).
The discussions with CGCC PFIs’ provincial branches in these 3 potential provinces provided opportunities for both CGCC and PFIs to enhance mutual understanding of credit guarantees and opportunities for PFIs to increase lending to borrowers that lack collateral when requesting loans.
Through these face-to-face discussions with more than hundreds of PFIs’ provincial management and staff, CGCC had a great opportunity to learn directly about the implementation of credit guarantees by these selected PFIs provincial branches as well as their comments and feedback on CGCC’s credit guarantee schemes. CGCC and PFIs will continue to strengthen cooperation in providing guaranteed loans to business owners.
CGCC and Canadia Bank co-organized seminars on “Loans with Credit Guarantees to Support the Development of SME” on 05 July 2022 in Battambang Province and on 07 July 2022 in Siem Reap Province to introduce CGCC’s guarantee schemes and the benefits for both banks and MSMEs in improving access to finance as well as to introduce the bank’s guaranteed loan products to the business owners in these 2 targeted provinces.
Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Siem Reap Province on 07 July 2022
Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Battambang Province on 05 July 2022
CGCC hopes that these seminars are helpful for business owners that need loans for their business expansion and working capital but lack collateral when requesting loans to be aware and able to access loans guaranteed by CGCC through the PFIs of CGCC.
Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Battambang Province on 05 July 2022
Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Siem Reap Province on 07 July 2022
Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Siem Reap Province on 07 July 2022
On 27 June 2022, CGCC organized the 9th Board of Directors Meeting, under the chairmanship of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, and the chairman of the CGCC’s Board of Directors, with the presence of all members of the Board of Directors.
The agendas of this 9th Board of Directors Meeting included: (1) CGCC Progress Report, (2) Notification of PFIs Application Batch 5, (3) Request for Change of Annual Procurement Plan Implementation, (4) Request for Approval in Principle to Amend Articles of Incorporation of CGCC, (5) Delegation of Approving Authority for Credit Guarantee, and (6) Other matters.
CGCC’s Board of Directors Meeting is regularly organized to review, endorse, and approve CGCC’s activities and progress, especially the credit guarantee schemes, to ensure transparency and efficiency of CGCC.
