CGCC Archives - Page 7 of 24

$150M in Loans Guaranteed for SMEs by CGCC

Posted on December 25, 2023January 15, 2024 by Sorn Chhorvyvatey

As of November 30, the state-owned Credit Guarantee Corporation of Cambodia Plc (CGCC) has issued a total of 1,880 Letters of Guarantee (LG) for loans worth $159.69 million. The guarantees were in support of small- and medium-sized enterprises (SMEs) affected by the Covid-19 pandemic.

According to figures released on December 22, the total of outstanding loans equal $113.96 million, with a non-performing loan (NPL) ratio of 5.41. Total claim payouts came to $123,336. The businesses supported included 1,731 micro, small and medium enterprises (MSMEs), and 149 larger firms.

Mey Vann, secretary of state at the Ministry of Economy and Finance, recently explained that SMEs have played an important role in supporting Cambodia’s socio-economic development. They contributed to the reduction of poverty by 50.2 per cent in 2003 to just 17.8 per cent in 2020, by increasing employment and income for Cambodians.

He said the CGCC was established to share risks with financial institutions, in order to increase the accessibility of loans to businesses, especially SMEs.

“The government considers that the use of the state budget to support financing through the credit guarantee mechanism has the first major advantage of a ‘Leverage Effect’. By using the capital of the CGCC to secure rotating loans, the capital is used only when a secured loan is lost. The state budget of $200 million provided by the CGCC supports the issuance of loans with a far greater value,” he said.

“Second, it serves as a ‘Countercyclical Crisis Tool’ by maintaining market confidence, especially during a crisis, to balance economic activity,” he added.

Toch Chaochek, CEO of Cambodia Post Bank Plc (CPBank), a CGCC partner, explained that SMEs which are correctly registered and seek loans with the assistance of the CGCC are less risky creditors than their counterparts that do neither.

The National Bank of Cambodia expressed support for lending to smaller businesses, noting that the benchmark risk weight was reduced to 75 per cent for properly registered SMEs that could produce appropriate financial statements.

The CGCC was established by Sub-Decree No 140/ANKR/BK on September 1, 2020, and its $200 million Business Recovery Guarantee Scheme (BRGS) was launched on March 29, 2021 in a bid to widen access to formal loans from participating financial institutions (PFI) for working capital, investment and business expansions.

In early January, the finance ministry announced the ongoing BRGS to MSMEs, as well as large enterprises. The project will continue until the initial capital of $200 million is gone.

Credit to: The Phnom Penh Post, Published on 25 December 2023

CGCC Participated in the Annual Training Program Under the Theme “SME Finance and Support Measure of Korea” Organized by KODIT in Seoul, Republic of Korea

Posted on December 21, 2023 by Sorn Chhorvyvatey

From November 26 to December 1, 2023, under the cooperation between Korea Credit Guarantee Fund (KODIT) and Credit Guarantee Corporation of Cambodia (CGCC), Mr. Nhim Soriya, Director of Finance and Business Analytics and Ms. Pin Manika, Manager of Marketing and Business Development of CGCC, together with one representative from the General Department of Policy of the Ministry of Economy and Finance, and one representative from the Non-Banking Financial Services Authority, participated in the annual training program under the theme “SME Finance and Support Measure of Korea” organized by KODIT in Seoul, Republic of Korea.

This training program focused on the institutional framework, laws and regulations, schemes/products, procedures, risk management, and mechanisms related to credit guarantee, especially KODIT’s programs and activities in supporting small and medium enterprises and the Environmental, Social, and Governance (ESG) in the Republic of Korea. This training program provided an opportunity for the CGCC team and other participants to learn about experiences, best practices, and new credit guarantee mechanisms to strengthen the efficiency of CGCC’s credit guarantees.

Dissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Kratie Province

Posted on December 20, 2023 by Sorn Chhorvyvatey

On 12th December 2023, the Credit Guarantee Corporation of Cambodia (CGCC) and Cambodia Chamber of Commerce (CCC) co-organized a seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Kratie province in collaboration with Kratie-Steung Treng-Ratanakiri Chamber of Commerce with more than 60 participants from Management and staff of participating financial institutions (PFIs) and small and medium business owners in Kratie and other provinces. The seminar was also presided over by Mr. Keo Sothearith, President of Cambodia Chamber of Commerce, chapter based in Kratie, Steung Treng, and Ratanakiri province, Mr. No Lida, Deputy CEO of CGCC, Mr. Hoy Saksa, General Secretary of Cambodia Agricultural Cooperative Alliance, and the presentations by representatives from Prince Bank and Phillip Bank as well.

Through this seminar, small and medium business owners are informed about the benefits of guaranteed loans through CGCC’s participating financial institutions in response to the lack of collateral when applying for a loan to expand and rehabilitate their businesses more.

Credit Guarantee Corporation Cambodia (CGCC) Signed a Memorandum of Understanding (MoU) with Thai Credit Guarantee Corporation (TCG)

Posted on December 8, 2023December 8, 2023 by Sorn Chhorvyvatey

On 29 November 2023 in Bangkok Thailand, upon the approval from H.E. Deputy Prime Minister, Minister of Economy and Finance, Credit Guarantee Corporation Cambodia (CGCC) signed a Memorandum of Understanding (MoU) with Thai Credit Guarantee Corporation (TCG) witnessed by H.E. Dr. Mey Vann, Secretary of State of the Ministry of Economy and Finance, and Chairman of Board Risk Management Committee of CGCC, to establish cooperation between CGCC and TCG to develop credit guarantee mechanism through information exchange, knowledge exchange, technical assistance and consultation with one another.

The Business Owner Who Received a Loan Guaranteed by CGCC

Posted on December 1, 2023September 13, 2024 by Sorn Chhorvyvatey

Agriculture is one of the key sectors in supporting Cambodia’s economic growth. Seeing the potential to promote Cambodian products and support Cambodian farmers, I decided to start a Cambodia Safety Vegetable Union of Agricultural Cooperative in 2021.

When starting this business, my main challenge was the lack of human resources to prepare documents and handle administrative work since most of the community union members were farmers. Another major challenge was the lack of working capital to expand the business and product exports. The solution for me was a loan from a financial institution.

At first, because my collateral was not enough for the loan, I could not obtain the necessary loans to support my business. However, later with a guarantee from CGCC, I was able to receive a sufficient business loan from Chamroeun Microfinance Institution. I used the guaranteed loan as a working capital, which allowed me to grow my Cambodia Safety Vegetable business to serve my customers and distributors in many provinces and cities on time. I also gained the trust of various development partners on my business.

Obtaining a guaranteed loan from CGCC depends on the potential of my business, namely the possibility of growth, building a good credit history, as well as completing the required documents that can confirm the need to use a loan for my business. Other business owners who need capital but lack collateral can also seek credit guarantees from CGCC through CGCC partner banks or microfinance institutions.

Courtesy Visit by CGCC to Kasikornbank in Thailand

Posted on December 1, 2023December 12, 2023 by Sorn Chhorvyvatey

On 01 December 2023 in Bangkok, Thailand, CGCC’s delegation, led H.E. Dr. Mey Vann, Secretary of State of the Ministry of Economy and Finance and Chairman of the Board’s Risk Management Committee of CGCC, paid a courtesy visit to the Kasikornbank (KBank) Public Company Limited based in Thailand, highly represented by Mr. Suwat Techawatanawana, Executive Vice President of KBank in Thailand, at the KBank’s Building in Bangkok, Thailand, with the participation from the management of KBank in Thailand and Phnom Penh Branch, which in one of CGCC’s PFI.

Courtesy Visit by CGCC to Kasikornbank in Thailand

H.E. Dr. Secretary of State expressed his appreciation for the warm welcome of the management of KBank Thailand, and also exchanged views about the economic situation in Cambodia and Thailand, and H.E. raised on the collaboration between CGCC and the Branch of Kasikornbank (Phnom Penh), which recently became one of CGCC’s PFIs in 2023.

In response, Mr. Executive Vice President of KBank Thailand expressed gratitude and appreciation for the courtesy visit of CGCC’s delegation, and especially shared with CGCC the progress of KBank as well as the experience of providing loans guaranteed by Thai Credit Guarantee Corporation in Thailand.

This courtesy visit provided such a great opportunity for both CGCC and KBank for a mutual understanding of the current economic situation in both countries, especially for strengthening the collaboration between both institutions for the like-minded vision in supporting MSMEs.

Understanding Guarantee Management System (GMS) of CGCC

Posted on December 1, 2023September 13, 2024 by Sorn Chhorvyvatey

A business cannot grow to its full potential without technology. CGCC is not an exception. “Information technology and business are becoming inextricably interwoven. I don’t think anyone can talk meaningfully about one without talking about the other”, said Bill Gates, founder of Microsoft. Since the first day of its operation, CGCC has embraced information technology, starting with the basic functions of Excel spreadsheets and Microsoft SharePoint to manage credit guarantee operations. Today, CGCC hit a new milestone by launching the Guarantee Management System (GMS) to further leverage information technology for effective credit guarantee operation. Technology adoption is our commitment to play a small part in supporting the key priorities – People, Road, Water, Electricity, and Technology – of the “Pentagonal Strategy – Phase I” of the new Royal Government of Cambodia.

What is GMS?

GMS is a digital platform that automates and streamlines the credit guarantee process, making it more convenient, faster, and more secure. It is the first-ever and only digital platform to manage a credit guarantee operation in Cambodia, tailored explicitly to CGCC’s credit guarantee model. It is a web-based system developed using microservices architecture and modern technologies to improve the guarantee process’s efficiency, accuracy, and security.

How was GMS developed?

. End-to-end automation: The GMS automates the guarantee application process, from PFI’s submission to CGCC’s approval. Furthermore, auto validation of CGCC’s scheme features is integrated to reduce error and time consumption when composing and reviewing the guarantee application.

. Real-time tracking: The GMS provides real-time monitoring of the status of all guarantee applications, allowing users to stay updated on the progress of each application and request.

. Comprehensive reporting: The GMS provides comprehensive reporting on all credit guarantee activities, allowing users to track the performance of guaranteed loans and identify areas for improvement.

. High security: The GMS is hosted on a secure platform and uses the latest security technologies to protect user data.

“CGCC Annual Staff Retreat 2023 in Siem Reap”

Posted on November 14, 2023November 15, 2023 by Sorn Chhorvyvatey

On November 9 to 12, 2023, CGCC organized the annual staff retreat along with a training program on “Action Leadership for Growth,” as well as a team building at Siem Reap province on November 9 to 12, 2023, to strengthen productivity, solidarity, and appreciation to all staff’s efforts in credit guarantee development.

“CGCC Annual Staff Retreat 2023 in Siem Reap”

This annual staff retreat provided all staff with a closer understanding of each other, shared working experiences, and increased capacity building and knowledge on action leadership for the growth to improve their productivity, as well as to contribute to the development of CGCC, in line with the vision to enhance financial inclusion and develop SMEs in Cambodia too.

CGCC Participated in the Women Entrepreneurs Day to share on Government’s Mechanism to support women entrepreneurs

Posted on November 14, 2023December 5, 2023 by Sorn Chhorvyvatey

On 11 November 2023, Mr. No Lida, Deputy CEO of CGCC, led CGCC team to participate in the Women Entrepreneurs Day organized by Cambodia Women Entrepreneurs Association under the topic “The Challenges of Taxation on Women Entrepreneurs and Future Outlook”. This meaningful event was attended by more than 150 participants from relevant institutions from the public and private sectors, as well as development partners.

CGCC Team to Participate in the Women Entrepreneurs Day Organized by Cambodia Women Entrepreneurs Association Under the Topic “The Challenges of Taxation on Women Entrepreneurs and Future Outlook”

During this event, Ms. San Sokrina, Manager of Product Development of CGCC, was a guest speaker in a panel discussion on “Government Support to Women Entrepreneurs Facing Global Economic Crisis”. During the panel discussion, Ms. San Sokrina shared CGCC’s Credit Guarantee Schemes, especially the Women Entrepreneurs Guarantee Scheme, which is specifically designed for women entrepreneurs’ access to finance to support their businesses, as well as key recommendations to women entrepreneurs on how to manage and gain access to business loans.

CGCC & Maybank Cambodia Collaborated on the Second Workshop of “SME Building Capacity and Capability (BCC)” Program

Posted on October 30, 2023October 30, 2023 by Sorn Chhorvyvatey

On 28 October 2023, CGCC, in collaboration with Maybank Cambodia, held the second workshop as part of its “SME Building Capacity and Capability (BCC)” program, with the participation of two esteemed guest speakers, Mr. Sam Kosal and Mrs. Lim Kimchea, along with over 100 SMEs.

This BCC program is a collaborative initiative between CGCC, Maybank Cambodia, BNI-Super and CWEA under an MOU to capacitate SMEs with skills to elevate their entrepreneurship and provide credit guarantees to SMEs.

This second workshop features among others special sharing sessions on the topics of “Marketing Strategy for Recession-Proofing and Business Competition during Economic Expansion” and “Online Business in Cambodia”.

Tag: CGCC