CGCC Archives - Page 14 of 24

PRESS RELEASE CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”

Posted on January 18, 2023May 30, 2023 by Sorn Chhorvyvatey

(Phnom Penh) ៖ On 17 January 2023 morning, the Ministry of Economy and Finance (MEF) and Credit Guarantee Corporation of Cambodia (CGCC) co-organize CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”. This Seminar is presided over by H.E. Dr. Mey Vann, Secretary of State of MEF, high representative of H.E. Akka Pundit Sopheacha, Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, with the participation of high-level management from the Ministry of Economy and Finance, National Bank of Cambodia, Ministry of Women’s Affairs, Ministry of Industry, Science, Technology and Innovation, National and International Development Partners, Banks and Financial Institutions, and associations of more than 150 participants.

PRESS RELEASE CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”

The purposes of this Seminar are to review CGCC’s annual guarantee progress, discuss the challenges and solutions on the implementation of credit guarantee schemes, share views on credit guarantee schemes in SMEs development as well as study the experiences of credit guarantee schemes in Malaysia and Thailand.

H.E. Dr. Mey Vann, stated, “SMEs are the indispensable driving force to ensure Cambodia’s sustainable, inclusive, and resilient economic growth. SMEs have played important roles in supporting Cambodia’s socioeconomic development and contributed significantly to poverty reduction from 50.2% in 2003 to 17.8% in 2020 through job creation and income growth of the Cambodian people.

In this Seminar, H.E. Dr. Mey Vann, high representative of H.E. Akka Pundit Sopheacha, Deputy Prime Minister, launched the “Portfolio Guarantee Scheme” and presented the awards to outstanding Participating Financial Institutions (PFIs) of CGCC in 2022, consisting of Canadia Bank, Sathapana Bank, AMK Microfinance, ABA Bank, and LOLC Microfinance.

CGCC was established by the Royal Government of Cambodia at the end of 2022 and launched the first credit guarantee scheme in March 2021. By the end of December 2022, CGCC has provided guarantees on 985 business loans with a total loan amount of more than USD 92 million, most of which are loans without sufficient collateral.

Click here to read more about: 12th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC

CGCC Extends Business Recovery Guarantee Scheme

Posted on January 5, 2023May 30, 2023 by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) on Tuesday announced the extension of the Business Recovery Guarantee Scheme (BRGS) from 1 January 2023 until the scheme is fully utilised.

According to the CGCC press release, the BRGS aims to support businesses, including micro, small and medium enterprises (MSMEs) and large firms, by enhancing their access to formal loans from the Participating Financial Institutions (PFIs) for working capital, investment, and business expansion.

The BRGS, with a scheme size of $200 million, was first launched for the 29 March 2021 to 31 December 2022 period. As of 31 December 2022, approximately $89 million in loans, most without collateral, were sanctioned. Loans under the BRGS are guaranteed by the CGCC.

The CGCC received approval from Deputy Prime Minister, Minister of Economy and Finance Aun Pornmoniroth for the extension of the BRGS after updating some scheme features, including the scheme period, the definition of MSMEs and large firms, and the maximum loan amount for each guarantee.

The CGCC’s credit guarantee under the BRGS will continue to act as collateral for 70-80 percent of the loan amount borrowed from the PFIs, thus, reducing the physical collateral required from borrowers.

Wong Keet Loong, CEO of the CGCC, told Khmer Times, “The maximum guaranteed loan amount has been increased to combine both priority and non-priority sectors, like $300,000 for working capital and $500,000 for investment/business expansion for MSMEs, and $500,000 and $700,000, respectively, for large firms.”

On the benefit of this extension, he said, “an additional $111 million of guaranteed loans is available until the scheme is fully utilised. In addition to the 936 MSMEs who obtained guaranteed loans, this would support more MSMEs in obtaining loans for their businesses during the economic recovery.”

“The Cambodian-owned businesses can approach our 25 PFIs for guaranteed loans. The MSMEs must meet the PFIs loan criteria to be eligible for guaranteed loans,” he remarked.

Various credit guarantee schemes have played a crucial role in strengthening entrepreneurship and enhancing financial inclusion in Cambodia, especially during the Covid-19 pandemic, through the smooth disbursal of loans.

The CGCC has come up with three guarantee schemes so far — the Business Recovery Guarantee Scheme (BRGS) launched in March 2022, the Co-Financing Guarantee Scheme (CFGS) unveiled in September 2021 and the Women Entrepreneurs Guarantee Scheme (WEGS) launched in April 2022, besides the extension of the CFGS to tourism. Each scheme was specifically designed to target different market segments.

Credit to: Khmer Times, Publish on 05 January 2023

Press Release – The Extension of the Business Recovery Guarantee Scheme of Credit Guarantee Corporation of Cambodia

Posted on January 3, 2023June 19, 2023 by Sorn Chhorvyvatey

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, 3 January 2023

Press Release - The Extension of the Business Recovery Guarantee Scheme of Credit Guarantee Corporation of Cambodia — Press Release – The Extension of the Business Recovery Guarantee Scheme of Credit Guarantee Corporation of Cambodia

Study Tour to Agricultural Cooperatives and Microfinance Institutions’ Branches in Kampong Cham Province

Posted on December 23, 2022May 23, 2023 by Sorn Chhorvyvatey

From December 20 to 21, 2022, CGCC team got the chance to join the Study Tour to Kampong Cham Province, co-organized by Cambodia Microfinance Association (CMA), and the Cambodia Agricultural Cooperative Alliance (CACA) to Agricultural Cooperatives (ACs) and branches of Microfinance Institutions (MFIs)in Kampong Cham to understand the situations and the access to finance challenges of ACs for developing and enhancing agricultural loan products and building network between ACs,MFIs, and related stakeholders.

Study Tour to Agricultural Cooperatives and Microfinance Institutions’ Branches in Kampong Cham Province

This study tour was organized for three days to visit three ACs in Prey Chhor, Stung Trang, and Cheung Prey districts. In addition, the team also got the chance to visit AMK in Skun, Chamroeun MFI, and LOLC, in Kampong Cham City. Meanwhile, CGCC is pleased to be a part of this study tour and explored various agendas related to financing and market in the agricultural sector. This input will be a key instrument for CGCC in developing strategies to further support the ACs that lack collaterals for pledging at the Financial Institutions (FIs), especially from MFIs.

Click here to read more about: CGCC Annual Staff Retreat 2022

Exposure Visit to a Demonstration Site, Biogas-Based Power Plant of a Pig Farm in Preah Sihanouk Province

Posted on December 16, 2022May 30, 2023 by Sorn Chhorvyvatey

On 13^th December 2022, Mr. No Lida, CGCC’s Deputy Chief Executive Officer, led CGCC’s team to a Biogas-based power plant of a pig farm in Prey Nub District, Preah Sihanouk Province, and shared about CGCC’s credit guarantee schemes to the delegation, honorably participated by H.E. Tin Ponlok, Secretary of State of the Ministry of Environment, and Dr. Sar Chetra, Deputy Secretary General of the Ministry of Agriculture, Forestry and Fisheries. This site visit was coordinated by the United Nations Industrial Development Organization (UNIDO).

Exposure Visit to a Demonstration Site, Biogas-Based Power Plant of a Pig Farm in Preah Sihanouk Province — Exposure Visit to a Demonstration Site, a Biogas-Based Power Plant of a Pig Farm in Preah Sihanouk Province

The field visit is designed to increase participants’ knowledge as well as disseminate an understanding of the benefits and challenges associated with implementing this biogas technology in agriculture, especially in piggery farms in Cambodia. Other than that, this field visit also helps to increase the cooperation between relevant stakeholders, including government institutions, development partners, private sectors, financial institutions, and researchers.

Through this visit, the participants particularly banks gain a better understanding of how biogas-based power plants would benefit farm operations in both economic and environmental aspects. This will encourage banks to create loan products with favorable conditions for business owners in this sector, meanwhile, CGCC is pleased to contribute to providing credit guarantees to support more guaranteed loan disbursement for businesses with environmentally friendly aspects.

CGCC Annual Staff Retreat 2022

Posted on December 13, 2022May 23, 2023 by Sorn Chhorvyvatey

CGCC provides all staff with opportunities beyond knowledge and working experience development, as all staff is valuable and indispensable in achieving CGCC’s vision. As such, CGCC organized the annual staff retreat to Koh Rong Sanloem on December 9 to 11, 2022, to strengthen productivity and solidarity, and to appreciate all staff’s efforts in credit guarantee development.

This annual staff retreat has brought the opportunity for all staff to have a closer understanding of each other and got to share working experience with joyful and good cooperation. CGCC hopes that this meaningful retreat will strengthen solidarity, efficiency, and productivity, contributing to the development of CGCC, in line with the vision to improve financial inclusion and develop SMEs in Cambodia.

Click here to know more about: CGCC participates in the discussion on “SMEs and FinTech Joining Hands to Promote Economic Recovery”

CGCC and CIMB Bank Joint Hands to Provide Guaranteed Loans for Businesses that Lack Collaterals

Posted on December 13, 2022February 7, 2024 by Sorn Chhorvyvatey

(Phnom Penh, 07 December 2022): Credit Guarantee Corporation of Cambodia (CGCC) and CIMB Bank officially announced the partnership with the signing ceremony of the Credit Guarantee Agreement to provide guaranteed loans to support micro, small and medium enterprises (MSMEs) in Cambodia for business expansion, investment, and/or working capital.

The partnership between CGCC, a state-owned enterprise, operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF) and CIMB Bank, a commercial bank with a wide range of networks in Cambodia, will enable CIMB Bank to support and assist business entities which are financially viable requesting for financing by using guarantees under the CGCC’s Credit Guarantee Scheme (CGS) without having to provide collaterals.

CGCC and CIMB Bank Joint Hands to Provide Guaranteed Loans for Businesses that Lack Collaterals

Chief Executive Officer of CGCC, Mr. Wong Keet Loong mentioned that “This partnership with CIMB Cambodia marks our 25th participating FI, to provide guaranteed loans to support the micro, small and medium enterprises (MSMEs) to grow their business.”

“As of 30th November 2022, CGCC has guaranteed loans close to 900 MSMEs amounting to about $85mil of loans. We are optimistic that the credit guarantee will be used as a good risk sharing mechanism for loans to MSMEs during the recovery stage of the economy. The guaranteed loans by CGCC will boost the confidence of FIs in providing loans to support the growth of MSMEs.” said Mr. Wong.

Mr. Bun Yin, Chief Executive Officer of CIMB Bank, said in the ceremony that “This partnership opens an opportunity for CIMB Bank to support Cambodian MSMEs through its innovative banking products and services. The collaboration with CGCC has enabled MSMEs to obtain financing facilities from CIMB Bank at a competitive rate without having the need to provide collaterals.”

“This latest offering also reaffirms CIMB Bank’s commitment to support the development of MSME businesses, which form the backbone of Cambodian economy.” added Mr. Bun Yin.

CIMB Bank has now become one of the 25 Participating Financial Institutions (PFIs) committed to assisting business entities in line with the government’s direction to support SMEs.

The collaboration between CGCC and CIMB Bank will enable businesses and SMEs to borrow without collateral or alternatively getting a higher loan amount than the value of any collateral offered.

About CGCC

CGCC is a state-owned enterprise established by a Sub-Decree of the Royal Government of Cambodia dated 01 September 2020. CGCC is operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF) with the mission 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 November 2022, CGCC has supported 899 businesses by providing credit guarantees for their loan applications, amounting to USD 85.73 million equivalent. CGCC has provided the most guarantee to SMEs, which accounts for 95% of the total businesses receiving the credit guarantee from CGCC.

About CIMB Bank PLC

CIMB Bank PLC was established in Cambodia on 19 November 2010 with the opening of a commercial banking branch in the heart of Phnom Penh. Today, the Bank operates 14 branches across five major cities: Phnom Penh, Siem Reap, Preah Sihanouk, Battambang and Kampong Cham.

We currently serve more than 35,000 corporate and individual customers. In response to growing demand from our customers across Cambodia, the Bank offers a wide range of banking products and services including consumer, commercial, corporate & transaction banking and financial institution group. CIMB Bank PLC is a Cambodian subsidiary of CIMB Group, a leading focused ASEAN bank and one of the region’s foremost corporate advisors.

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

CGCC Supports the Accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” 4th Cohort

Posted on December 12, 2022May 30, 2023 by Sorn Chhorvyvatey

“I’m Financially Literate Program” was successfully launched by Sathapana Bank, in partnership with Khmer Enterprise, Manulife Cambodia, and Credit Guarantee Corporation of Cambodia (CGCC). The fourth cohort of this program was organized on 3 – 4 & 10 – 11 December 2022 to provide non-financial services to SMEs and MSMEs and especially women in business.

More than 20 Entrepreneurs and business owners attended the fourth 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.

CGCC Supports the Accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” 4th Cohort

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.

Click here to know more about: CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” 3rd cohort

12th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

Posted on December 6, 2022May 30, 2023 by Sorn Chhorvyvatey

On 05 December 2022 at 9:00am, CGCC organized the 12th Board of Directors Meeting at CGCC’s Head Office under the chairmanship of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors, with the presence of members of the Board of Directors and the state controller.

The agendas of this 12^th Board of Directors Meeting included: (1) CGCC Progress Report, (2) PFIs Application, (3) New Guarantee Scheme, (4) Bond Guarantee Framework, (5) Amendment to Articles of Incorporation, and (6) Others.

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 the transparency and efficiency of CGCC.