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Tag: business recovery guarantee scheme

CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” first cohort

Posted on by Sorn Chhorvyvatey

“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 cohort
CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” first cohort
CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” first cohort
CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” first cohort

Click here to read more about: CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” second cohort

CGCC visits PFIs provincial branches in kampong Speu, Preah Sihanouk, and Kampot, to Enhance Collaboration on the Credit Guarantee

Posted on by Sorn Chhorvyvatey

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.

Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”

Posted on by Sorn Chhorvyvatey

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”
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.

Detail of “Co-Financing Guarantee Scheme for Tourism Sector”: https://cgcc.com.kh/en/co-financing-guarantee-scheme-for-tourism/

Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector” organized by CGCC on 1 September 2022 in Kampot Province
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector” organized by CGCC on 1 September 2022 in Kampot Province
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”

CGCC’s Co-Financing Guarantee Scheme to help Tourism Sector

Posted on by Sorn Chhorvyvatey

Credit to Khmer Times: Published on 20 July 2022

The scheme is specifically targeted at tourism-related businesses. It provides a higher guarantee cover of 80 percent of the loan amount with a nominal guarantee fee of one percent per annum, says Wong Keet Loong, CEO of CGCC.

Business owners in the tourism sector who lack collateral can apply for a loan with a credit guarantee from a financial institution that is a partner of the Credit Guarantee Corporation of Cambodia (CGCC), according to the Ministry of Tourism.

According to an announcement from the Ministry of Tourism, CGCC launched the Co-Financing Guarantee Scheme for Tourism on 12 July to support the rehabilitation and growth of the country’s tourism sector.

The scheme is a credit guarantee, providing collateral for 80 percent of the loan from banks and financial institutions.

In case the tourism business owner lacks collateral to secure a loan in the co-financing project, they can apply with a loan guarantee from a financial institution that is a partner of CGCC.

The CGCC launched the scheme after receiving approval from the Ministry of Economy and Finance.

Wong Keet Loong, CEO of CGCC, told Khmer Times that the scheme is specifically targeted at tourism-related businesses. “It provides a higher guarantee cover of 80 percent of the loan amount with a nominal guarantee fee of one percent per annum. The scheme is mainly for loans disbursed under the Tourism Recovery Co-Financing Scheme (TRCS) of the SME Bank of Cambodia,” he said.

Loong explained that under CGCC’s current scheme, the Business Recovery Guarantee Scheme (BRGS), tourism is classified as a priority sector. It has guaranteed 15 tourism-related businesses with a loan amount of $1.78 million.

“The scheme was recently launched to complement the SME Bank’s Tourism Recovery Co-Financing Scheme (TRCS).  TRCS provides low borrowing costs whilst the CFGS-TR provides credit guarantees as collateral for the loans. Business owners can obtain loans at low-interest rates without providing physical collateral,” he pointed out.

CGCC’s existing schemes also cover the tourism sector should PFI use its own source of funding and require higher loan amounts to be guaranteed. He said most businesses in this sector that have been impacted by the pandemic have either scaled down or shut down temporarily.

“To recover their business, they would need funding for renovation or refurbishments. When requesting loans from banks, they are required to pledge their collaterals. The requirements for collateral have become more stringent as FIs are more risk-averse toward the sector,” Loong said.

CGCC guarantees 80 percent of the loan and it shares the risk with the financial institution, enabling the borrower to borrow without having to pledge additional collateral.  “Furthermore, the guarantee will give added confidence to the financial institution to lend to this sector,” he added.

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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.