CGCC Archives - Page 18 of 24

CGCC visits PFIs provincial branches in Battambang, Banteay Meanchey, and Siem Reap, to Enhance Collaboration on the Credit Guarantee

Posted on July 11, 2022June 9, 2023 by Sorn Chhorvyvatey

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.

Click here to read about: Loans with Credit Guarantees to Support the Development of SMEs

Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Battambang and Siem Reap Province

Posted on July 11, 2022June 9, 2023 by Sorn Chhorvyvatey

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 Battambang and Siem Reap Province — Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Siem Reap Province on 07 July 2022

Participants in these seminars included business owners with the coordination of the Cambodia Women Entrepreneurs Associations (CWEA), Young Entrepreneurs Associations of Cambodia (YEAC), and Cambodia Association of Travel Agents (CATA), as well as CGCC team led by Mr. No Lida, DCEO of CGCC, and Canadia Team led by Mr. Song Kimhong, Head of SME Business Division of Canadia Bank.

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.

Click here to read about: Dissemination Workshop on Access to Credit Guarantee for Businesses in Tourism Sector

9th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

Posted on June 29, 2022June 9, 2023 by Sorn Chhorvyvatey

On 27 June 2022, CGCC organized the 9^th 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.

Click here to read about: Dissemination Workshop on Access to Credit Guarantee for Businesses in Tourism Sector

Dissemination Workshop on Access to Credit Guarantee for Businesses in Tourism Sector

Posted on June 28, 2022June 9, 2023 by Sorn Chhorvyvatey

On Friday 24 June 2022, Mr. Wong Keet Loong, CEO of CGCC, together with CGCC’s colleagues participated in the dissemination workshop on “Access to Loans with Credit Guarantees for Businesses in the Tourism Sector”. This dissemination workshop was organized by the Ministry of Tourism and presided over by H.E. Song Tong Hab, Secretary of State of the Ministry of Tourism, with the participation of the management of the Ministry of Tourism, associations, federations, and the business owners in the Tourism Sector.

Mr. No Lida, Deputy CEO of CGCC, presented to the management of the Ministry of Tourism as well as businesses in the Tourism Sector about CGCC’s credit guarantee schemes and mechanism aiming to support tourism businesses’ access to loans with credit guarantees, especially loans without enough collaterals, to order to support the Tourism Sector’s recovery and development.

CGCC has launched 3 credit guarantee schemes to support Micro, Small, and Medium Enterprises (SMEs), large firms, and women-owned businesses for easier access to loans despite collateral challenges through partnerships with banks and Microfinance Institutions (MFIs) to improve financial inclusions and develop SMEs.

Click here to read about: CGCC shares tips to access to guaranteed loans for Women Entrepreneurs

Rules in works for loans from tourism recovery scheme

Posted on June 26, 2022June 9, 2023 by Sorn Chhorvyvatey

The government is developing a set of procedures and conditions for tourism-related businesses to obtain a certificate of collateral from the Credit Guarantee Corporation of Cambodia Plc (CGCC) and receive credit from the recently-launched $150 million Tourism Recovery Co-Financing Scheme (TRCS).

The TRCS was financed by a counterpart fund between the government and financial institutions, with $75 million of the national budget to be disbursed in the form of loans issued by state-run Small and Medium-sized Enterprise Bank of Cambodia Plc (SME Bank), and the other $75 million through loans made via commercial banks and microfinance institutions (MFI).

At a June 24 meeting on the matter, Ministry of Tourism secretary of state Song Tong Hap stressed that the procedures and conditions must support the TRCS – rolled out on May 17 – to restore the tourism industry and promote growth.

Tong Hap, who also chairs a sub-working group on tourism industry and labour support, noted that the CGCC launched the Co-Financing Guarantee Scheme (CFGS) on September 22 to provide credit guarantees on business loans, to share risk with lending institutions and foster financial inclusion.

Key offerings of the TRCS include a maximum interest rate of 6.5 per cent per annum, a 12-month grace period, loan term of up to seven years, loan amount of up to $400,000 and the option of receiving funds in either riel or US dollars. According to Tong Hap, no collateral is required either.

He believes that the TRCS, combined with the CFGS, will be an important financial tool to quickly align tourism recovery with the ministry’s expectations that Cambodia will receive seven million foreign visitors and see 11 million domestic trips by 2023.

CGCC deputy director-general No Lida said that the tourism business must meet a number of qualifications, such as: have more than 50 per cent local ownership; be registered with the tax authorities “after obtaining a credit guarantee”; and demonstrate the ability to repay.

He said these businesses can obtain a Letter of Guarantee (LG) by contacting the institution where they applied for the loan, which will in turn request the LG from the CGCC.

Thourn Sinan, chairman of IMCT Co Ltd and Pacific Asia Travel Association Cambodia chapter (PATACC), voiced confidence that the procedures and conditions would be “very attractive” for tourism-related businesses, noting that the industry still faces hurdles in the loan application process.

“The tourism ministry has really worked hard to help tourism businesses. But in the past, we’ve faced some issues, for example, when SME Bank announced an interest rate of 6.5 per cent, but when our members went to apply for a loan, the rate instead stood at 7.5 per cent, and more financial sustainability reports were required, and this is what we’re worried about,” he said.

(Article from Phnom Penh Post: Publication on 26 June 2022)

CGCC shares tips to access to guaranteed loans for Women Entrepreneurs

Posted on June 16, 2022June 9, 2023 by Sorn Chhorvyvatey

On 16 June 2022, Mr. Wong Keet Loong, Chief Executive Officer of CGCC, participated as a panelist in the Women Entrepreneurs Forum on “Access to Finance and Markets for Women’s Business Growth”. Mr. Wong has shared the participation of CGCC in supporting financial inclusion for women entrepreneurs, especially in assisting them to get guaranteed loans.

In the panel discussion on “Increase access to information on financial products and services”, Mr. Wong emphasizes the importance of credit guarantees, acting as part of collaterals, to assist women entrepreneurs in obtaining loans from CGCC’s Participated Financial Institutions (PFIs). The credit guarantee mechanism is an additional intervention with favorable features, initiated by the government, to assist women-owned businesses to get formal loans for the purpose of working capital and business expansion, since 61% of the businesses in Cambodia are owned by women.

In addition to the ongoing support for women entrepreneurs from relevant stakeholders, Mr. wong also encourages all women entrepreneurs to be prepared to comply with the conditions of those favorable financing, including the credit guarantee. Credit guarantees that act as parts of collaterals for business loans through CGCC Participating Financial Institutions (PFIs) are eligible for all woman entrepreneurs. In order to obtain this supporting scheme, women entrepreneurs can seek information from CGCC and from CGCC’s 23 PFIs.

This Women Entrepreneurs Forum participates around 200 participants including women and women entrepreneurs, which provides the opportunity for them to access information and solutions addressing business issues, products/services development (e.g. access to finance, product requirements for local chains, how to access legal supports, and digital literacy). CGCC recently launched the third credit guarantee scheme, the Women Entrepreneurs Guarantee Scheme (WEGS), in April 2022, which 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 with favorable credit guarantee features. Women Entrepreneurs can find this scheme information at: https://cgcc.com.kh/en/women-entrepreneurs-guarantee-scheme/

Click here to read about: Courtesy visit by CGCC to NBC to discuss expanding more support to improve financial inclusion

448 Businesses Benefit under Credit Guarantee Scheme

Posted on June 9, 2022June 9, 2023 by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has supported 448 businesses by providing credit guarantees for their loan applications, amounting to $45.5 million as of May 31, according to the latest data.

The total loan amount included both national and foreign currencies with 19.8 billion riels and 40.56 million dollars. The loan sizes were in the range of $6,000 to $1 million. Letters of guarantee for 343 working capital loans, 103 investment expansions, and two capital expenditures were provided, according to a CGCC release.

The CGCC was established by the government in September 2020 as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance.

The scheme is designed to help businesses that have good potential to receive bank loans even if they don’t have any collateral. It provided a merit-based opportunity for Small and Medium Enterprises (SMEs) and Micro and Small Medium Enterprises (MSMEs).

CGCC’s CEO Wong Keet Loong told Khmer Times that a credit guarantee is a financial instrument that supports both financial institutions and small enterprises.

For SMEs and MSMEs, it improves financial inclusion. It enables them to borrow without having the burden of providing collateral whenever their business capacity grows and they have higher loan requirements.

“Small business owners can obtain loans at affordable rates under the scheme. By having access to borrowing, business owners are able to scale up their businesses. We hope to reduce poverty to a certain extent through this,” Loong said.

CGCC launched the $200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support businesses including MSMEs as well as large firms by enhancing their access to formal loans from the Participating Financial Institutions (PFIs) for working capital investment and business expansion.

The scheme is available until the end of this year and the guaranteed loans will be disbursed through the PFIs on a first-come-first-served basis.

Article credit to: Khmer Times, 06 June 2022

Click here to read about: CGCC recommends ways to Access to Guaranteed Loans

CGCC Credit Guarantees Climb to $45.5M

Posted on June 9, 2022June 9, 2023 by Sorn Chhorvyvatey

State-owned Credit Guarantee Corporation of Cambodia Plc (CGCC) has issued credit guarantees totaling $45.5 million to 448 businesses, as of May 31.

Out of the 448 businesses, 431 are small- and medium-sized enterprises (SMEs), and 17 are large, while 138 are owned by women.

CGCC was established by Sub-Decree No 140/ANKR/BK on September 1, 2020, to support businesses, especially SMEs to enable formal loans by guaranteeing lenders that principal and interest payments will be made.

Through its ongoing schemes, CGCC provides credit guarantees on loans disbursed by participating financial institutions (PFI), which include both banks and microfinance institutions (MFI).

In turn, CGCC requests that applicants fully understand PFI’s requirements and make the necessary preparations before taking out loans with credit guarantees.

“Bridging the gap between credit supply and funding demand supports economic growth and CGCC’s missions of providing credit guarantees to businesses and sharing the risk with crediting institutions, and increasing financial inclusiveness,” said CGCC deputy CEO No Lida.

Meanwhile, Hong Vanak, an economic researcher at the Royal Academy of Cambodia, told The Post on June 5 that the provision and receipt of a loan with legal guarantees have played an important role in stabilizing the economy.

The credit guarantee agency also ensured that the process went smoothly, particularly during pandemics.

Vanak said when the financial sector stabilizes, investment and job creation will also increase.

In addition, SMEs with sufficient capital lead to better production processes, resulting in lower imports of goods and increased exports.

“Providing credit guarantees helps lending institutions and lenders [business owners] build confidence in each other,” Vanak said.

He added that prior to guarantees, CGCC requires conditions to be met while it studies the type of business or business. “They [always] ask for clarity first.”

In September, CGCC launched the Co-Financing Guarantee Scheme (CFGS), which is specifically designed for co-financing loans disbursed under the SMEs Co-Financing Scheme Phase II (SCFS II), of Small and Medium Enterprise Bank of Cambodia Plc (SME Bank).

The CFGS is the second credit guarantee scheme offered by the CGCC. The enterprise launched the $200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 in a bid to spur economic recovery during the Covid-19 pandemic.

The CFGS provides a way for CGCC’s PFIs to offer unsecured loans or those that don’t require any form of collateral, to SMEs.

Article credit to Phnom Penh Post, 5 June 2022

Click here to read about: CGCC recommends ways to Access to Guaranteed Loans

Courtesy visit by CGCC to NBC to discuss on Expanding more Support to Improve Financial Inclusion

Posted on June 7, 2022June 9, 2023 by Sorn Chhorvyvatey

On 7 June 2022, Credit Guarantee Corporation of Cambodia (CGCC), led by Mr. Wong Keet Loong, CEO of CGCC, pay a courtesy visit to H.E. Dr. Chea Serey, Assistant Governor and Director General of Central Banking of the National Bank of Cambodia (NBC), at the NBC.

Mr. Wong is very grateful for the warm welcome of H.E. Dr. Chea Serey and updated H.E. Dr. Chea Serey about CGCC’s latest progress to support SMEs and improve financial inclusion.

H.E. Dr. Chea Serey praised the progress made by CGCC and expressed her support for CGCC’s mission to provide guarantees on loans disbursed by banks and microfinance institutions (MFIs) to businesses, especially SMEs that lack collateral.

Today’s meeting is an excellent opportunity for CGCC to know more about NBC and discuss synergies between NBC, financial institutions, and CGCC in improving financial inclusion and financial literacy amongst micro, small, and medium enterprises in Cambodia.

Click here to read about: CGCC visits Canadia Bank at Kampong Chhnang Branch enhance collaboration on the Credit Guarantee

CGCC visits Canadia Bank at Kampong Chhnang Branch enhance collaboration on the credit guarantee

Posted on May 25, 2022June 20, 2023 by Sorn Chhorvyvatey

On 24 May 2022, CGCC conducted a visit to Canadia Bank at Kampong Chhnang Branch for a meeting and sharing the CGCC’s credit guarantee schemes to the Management team and related bank staff at that branch.

After sharing CGCC’s credit guarantee schemes and the benefits for banks and customers who are business owners, this meeting also brought the opportunity for both CGCC and Canadia bank Kampong Chhnang branch to have a mutual understanding of the importance of credit guarantee, and the practice of the banks in raising awareness of the credit guarantee forbusiness owners who are bank’s customers.

Canadia bank is among the first official CGCC-participated financial institutions (PFI) and is also a supportive partner in providing loans under CGCC guarantee to SMEs and large firms for their working capital and business expansion.

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