In a bid to give a much-needed boost to micro, small and medium-sized enterprises (MSMEs), the Credit Guarantee Corporation of Cambodia (CGCC) has infused credit guarantees of as much as $149 million as of September 2023. A report issued on October 17 revealed 1,762 businesses benefited from them.
“The Credit Guarantee Corporation of Cambodia has provided guarantees for $149 million in loans for business, investment and business expansion capital to support large, micro and small businesses,” said a report.
A CGCC report put the total outstanding guaranteed loans at $111 million and outstanding guaranteed amount at $80 million. It also put the number of MSMEs at 1,617 and large entities at 145, with 741 being women-owned.
The CGCC scheme involves 27 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.
A Ministry of Economy and Finance undertaking, CGCC was the first credit guarantee institution in the Kingdom set up in August 202 at the height of the Covid-19 pandemic.
The CGCC guarantee ensures easy credit for SMEs and a bigger market for their products, said Te Taing Por, President of the Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC).
“Credit guarantee from the Credit Guarantee Corporation of Cambodia is an opportunity for small and medium-sized enterprises, members of FASMEC, who are facing a lack of collateral to access financing to expand their business,” Taing Por said.
Smooth loan distribution has boosted entrepreneurship and financial inclusion said Mey Vann, Secretary of State at the Ministry of Economy and Finance.
On 10 October 2023, CGCC organized the Third CGCC Town Hall meeting of 2023 to review the progress in Q3 and plan in Q4 2023.
The 3rd Town Hall Meeting was attended by all CGCC staff and a guest of honor, Mr. Oeur Sothearoath, Chief Executive Officer of Credit Bureau Cambodia (CBC). CGCC Town Hall meeting is not only for reviewing and evaluating CGCC’s progress but also a platform for a general discussion on the current situation of the banking and financial sector in Cambodia.
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On October 10, 2023, Management and all staff of CGCC organized a blessing ceremony at CGCC’s office to welcome the upcoming Pchum Ben Festival.
We would like to extend our wishes to CGCC’s staff and beloved families, CGCC’s partners and stakeholders, and all Cambodian people happiness, prosperity, and safe travel to everywhere
Blessing Ceremony to Welcome the Upcoming Pchum Ben FestivalBlessing Ceremony to Welcome the Upcoming Pchum Ben FestivalBlessing Ceremony to Welcome the Upcoming Pchum Ben FestivalBlessing Ceremony to Welcome the Upcoming Pchum Ben FestivalBlessing Ceremony to Welcome the Upcoming Pchum Ben FestivalBlessing Ceremony to Welcome the Upcoming Pchum Ben Festival
On 30 August 2023, CGCC organized a training on “PowerPoint Designs and Presentation Skills” for all staff at CGCC head office.
CGCC hopes this training course will help improving the presentation skills of all CGCC staff and contributing their work performance as well as CGCC development as a whole.
Training on PowerPoint Designs and Presentation Skills for CGCC’s StaffTraining on PowerPoint Designs and Presentation Skills for CGCC’s StaffTraining on PowerPoint Designs and Presentation Skills for CGCC’s StaffTraining on PowerPoint Designs and Presentation Skills for CGCC’s Staff
Credit Guarantee Corporation of Cambodia (CGCC) and the Branch of Kasikornbank Public Company Limited (Phnom Penh) have signed the Credit Guarantee Agreement to support micro, small and medium-sized enterprises (MSMEs).
The signing ceremony was held at CGCC’s office in the presence of Ros Seileva, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, Cherdkiat Atthakor, Ambassador of Thailand to Cambodia and Suwat Techawatanawana, Executive Vice President of Kasikornbank Thailand.
Wong Keet Loong, Chief Executive Officer of CGCC, said that the bank’s branch in Cambodia can tap on their experience in providing guaranteed loans in Thailand.
“The collaboration also opens up opportunities for us to explore cross-border guarantees between businesses in Thailand and Cambodia. We have also plans to collaborate with the Thai Credit Guarantee Corporation, which has more than 30 years of experience, towards the end of this year,” he said.
Ritthiwut Watthanachai, General Manager of Kasikornbank in Phnom Penh, said that the initiative seamlessly aligns with the bank’s business plan for the next phase.
“The partnership with CGCC will be the key enabler for us in extending our reach to a broader entrepreneur base while improving our service capabilities. As the first Thai bank to join the credit guarantee scheme, this partnership underlines Kasikornbank’s aspiration and commitment to supporting the government’s vision for SME development,” he said.
CGCC aims to improve financial inclusion and develop MSMEs with the main mission of providing guarantees for loans given to MSMEs through Participating Financial Institutions (PFIs).
The Kasikornbank in Phnom Penh now become one of the 27 PFIs of CGCC, committing to assisting business entities in line with the Cambodian government’s direction to support MSMEs.
The CGCC has provided credit guarantees of $139.5 million to 1,648 businesses for their working capital expansion as of July 2023.
The Credit Guarantee Corporation of Cambodia (CGCC) and Kasikornbank Public Co Ltd’s (KBank) Phnom Penh branch have formalised a credit guarantee agreement. This move aims to enhance confidence and extend guaranteed financing to business proprietors, particularly micro, small and medium-sized enterprises (MSME).
Among those present at the signing ceremony at the CGCC headquarters in Phnom Penh were Ros Seileva, chairman of the CGCC and secretary of state for the Ministry of Economy and Finance, Thai ambassador Cherdkiat Atthakor and KBank Thailand executive vice-president Suwat Techawatanawana.
Wong Keet Loong, the CEO of CGCC, expressed his enthusiasm about the partnership.
“We’re honoured to collaborate with a top-tier bank to provide credit guarantees to bolster MSME financing in Cambodia,” he stated.
He highlighted the extensive experience of the Thai banking sector in guaranteed loans and hoped this would translate to more financing opportunities for Cambodian businesses.
“This partnership paves the way for cross-border guarantees between Thai and Cambodian enterprises. We’re looking to collaborate and learn from the Thai Credit Guarantee Corp, seasoned with over 30 years of expertise, later this year,” Loong added.
Ritthiwut Watthanachai, the general manager of KBank Phnom Penh, emphasised the strategic importance of Cambodia in the growth plan of the Bangkok-headquartered KBank, one of Thailand’s premier financial institutions formerly known as Thai Farmers Bank.
“Our alliance with CGCC significantly broadens our outreach to entrepreneurs, enhancing our service capabilities. Being the first bank to participate in the credit guarantee plan showcases our commitment to fostering MSME growth in alignment with the government’s vision,” Watthanachai said.
CGCC’s core mission is to augment financial inclusivity and foster MSME growth by ensuring loans through Participating Financial Institutions (PFI) for MSMEs. On the other hand, KBank Phnom Penh offers an array of financial services and solutions catering to individuals and enterprises.
On 29 September 2023, Credit Guarantee Corporation of Cambodia (CGCC) and the Branch of Kasikornbank Public Company Limited (Phnom Penh) signed the Credit Guarantee Agreement. The Signing Ceremony was held at CGCC’s office with the honorable presence of H.E. Ros Seileva, Secretary of State of the Ministry of Economy and Finance, and Chairman of CGCC, H.E. Cherdkiat Atthakor, Ambassador of Thailand to Cambodia, and Mr. Suwat Techawatanawana, Executive Vice President of Kasikornbank Thailand.
CGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed LoansCGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed Loans
Mr. Wong Keet Loong, Chief Executive Officer of CGCC, said: “We are very honored to have this partnership with a leading bank of Thailand to offer credit guarantees to support their MSME financing in Cambodia. The bank branch here can tap on their experience in Thailand, where the banking sector is very experienced in providing guaranteed loans. With this experience, we hope the bank will extend guaranteed financing to benefit Cambodian-owned businesses.
This collaboration also opens up opportunities for us to explore cross-border guarantees between businesses in Thailand and Cambodia. We have plans to understudy and collaborate with the Thai Credit Guarantee Corp, which has more than 30 years of experience, towards the end of this year.”
CGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed Loans
Mr. Ritthiwut Watthanachai, General Manager of the Branch of Kasikornbank (Phnom Penh), said: “Cambodia is at the center of Kasikornbank’s regional expansion strategy. This initiative seamlessly aligns with our business plan for the next phase, which we aim to leverage our experience in supporting small and medium-sized businesses in Thailand and replicate a similar model to serve local Cambodian SMEs. The partnership with CGCC will be the key enabler for us in extending our reach to a broader entrepreneur base, while improving our service capabilities. As the first Thai bank who joins the credit guarantee scheme, this partnership underlines Kasikornbank’s aspiration and commitment in supporting the Government’s vision for SME development.”
CGCC aims to improve financial inclusion and develop MSMEs with the main mission of providing guarantees for loans through Participating Financial Institutions (PFIs) to MSMEs. Meanwhile, the Branch of Kasikorn Bank (Phnom Penh) is a foreign bank branch of Kasikornbank Public Company Limited, known as KBank, one of Thailand’s leading financial institutions. The branch provides a wide range of financial services and solutions to individuals and businesses.
With a strong presence in Cambodia, the Branch of Kasikornbank (Phnom Penh) has now become one of the 27 Participating Financial Institutions (PFIs) of CGCC, committing to assisting business entities in line with the Government’s direction to support MSMEs. CGCC and Kasikornbank are confident that this partnership will help to address the financing gap faced by many MSMEs in Cambodia and contribute to the growth and development of the country’s economy.
CGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed LoansCGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed LoansCGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed Loans
About CGCC
CGCC is the only credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia.
About Branch of Kasikornbank Public Company Limited (Phnom Penh)
The Branch of Kasikornbank Public Company Limited (Phnom Penh) was granted the commercial banking license by National Bank of Cambodia in November 2016. The initial registered capital was MUSD 50, which has been increased to MUSD 80 as of 2023. As an integral of Kasikornbank, the branch aims to provide best in class financial products and services to both local and foreign business in Cambodia. Given Kasikornbank’s presences in China, Indonesia, Vietnam, Lao PDR, and Thailand, the branch also focuses on connecting customers from across the region.
Credit Guarantee Corporation of Cambodia (CGCC), a state-owned enterprise under the Ministry of Economy and Finance was established in November 2020. Since it started operations in March 2021, CGCC has launched several credit guarantee products to support loans extended to MSMEs through its participating Financial Institutions (PFIs). With CGCC’s credit guarantee, it has brought a positive impact on the economic activities of MSMEs with credit additionality of approximately USD145mil guaranteed loans. CGCC has supported financing to about 1,700 MSMEs who provide jobs to more than 27,000 workers.
The impact of CGCC has been steadily growing. Many PFIs are seeing the benefits of providing guaranteed loans as a risk-sharing mechanism and for capital management purposes, as guaranteed loans will carry a zero-risk weight from 2024 onwards. With the support of CGCC, PFIs will be able to extend more credit to business entrepreneurs.
The accomplishments of CGCC have been recognised by the SME Finance Forum with an Honorable Mention in the “Product Innovation of the Year” category of the Global SME Finance Awards 2023. The awards presentation was held in Mumbai recently, endorsed by the G20’s Global Partnership for Financial Inclusion (GPFI), capturing the effective and successful practices of institutions, honouring the innovative products and services for SME clients that have achieved impressive results in expanding finance and services to SMEs and the institutions that undertake those efforts.
Wong Keet Loong, CEO of CGCC, commented “We are honoured to receive this recognition for the work we have done at CGCC. This achievement is testament to our part in supporting MSMEs in getting loans to grow their business”. He added that “this award is dedicated to all CGCC staff who have been committed to being part of a state-owned enterprise to play a role in supporting the growth of MSMEs and nation building. My salute to them for their passion and dedication and I hope that this recognition will continue to inspire them to excel further”.
CGCC has been recently accredited by SERC to be Cambodia’s first bond guarantee institution. With that, CGCC is now able to support all segments of businesses from small to large enterprises in obtaining financing. The credit guarantee is an effective financial tool to improve financial inclusion.
On 15th September 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 Pailin province in collaboration with Pailin Chamber of Commerce with more than 80 participants from Management and staff of participating financial institutions (PFIs) and small and medium business owners in Pailin and other provinces. The seminar was also presided over by H.E. Oknha. Lor Sun Cheang, President of Pailin Chamber of Commerce, Mr. No Lida, Deputy CEO of CGCC, Mr. Hun Vatha, Vice President of Cambodia Agricultural Corporative Alliance (CACA), and the presentations by representatives from LOLC Microfinance Institution and ABA 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.
Dissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin ProvinceDissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin Province
On 7th & 19th September 2023 at 2:00 pm, CGCC organized the 15th Board of Directors Meeting at CGCC 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 agenda of this 15th Board Meeting includes:
(1) CGCC Work Progress Report
(2) Strategic Business and Budget Plan for 2024
(3) SDG Financing Facility with UNDP
(4) 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 the transparency and efficiency of CGCC.
15th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)
