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Tag: Co-Financing Guarantee Scheme for Tourism

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

Posted on 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 second cohort of this program was organized on 08 & 09 and 15 & 16 October 2022 to provide non-financial services to SMEs and MSMEs and especially women in business.

More than 30 Entrepreneurs and business owners attended the second 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” second cohort
CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” second cohort

CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”

Posted on by Sorn Chhorvyvatey

On 17 September 2022, CGCC and Maybank Cambodia co-organized the “SME Building Capacity and Capability (BCC) Programme” at Maybank Tower, participated by more than 50 SME entrepreneurs to provide business support instruments and technical advisory based on international best practices to support SME growth, productivity and innovation, as well as enhance competitiveness for SMEs.

Mr. No Lida, Deputy CEO of CGCC, remarks on the importance of this program for SMEs beyond the cooperation between CGCC and Maybank Cambodia, and Mr. Duk Sarak, Head of Community Financial Services of Maybank Cambodia, relayed the opening remark for the event. SME participants had the opportunity to learn about the topic of “Business Registration in Cambodia” from SokSiphana & Associates, “The Importance of Financial Discipline for SMEs” from Acclime Cambodia, “Access to Finance and Guarantee Scheme” from Maybank Cambodia.

CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”

Upon the collaboration on providing loans with credit guarantee, on November 2021, CGCC and Maybank Cambodia also co-organized the Business Forum on “Supporting SME Businesses in Cambodia” to discuss more details about the possibility of collaboration on how to support SMEs for greater access to finance despite collateral issue and the support of SME’s capacity Building and long-term growth.

CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”

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.

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.

You might also be interested in Co-Financing Guarantee Scheme to support Tourism Recovery

Co-Financing Guarantee Scheme to support Tourism Recovery

Posted on by Sorn Chhorvyvatey

To support the government’s policy on tourism recovery and growth of the sector, Credit Guarantee Corporation of Cambodia (CGCC) launched the Co-Financing Guarantee Scheme for Tourism (CFGS-TR) after approval by the Ministry of Economy and Finance.

CFGS-TR is specifically designed to provide credit guarantees on co-financing loans disbursed by CGCC’s Participating Financial Institutions (PFIs) under the Tourism Recovery Co-Financing Scheme (TRCS) of the SME Bank of Cambodia.

It is a joint effort by the two state-owned enterprises to improve access to finance for SMEs in the tourism sector. While TRCS aims to lower SMEs’ cost of borrowing, CFGS-TR is a guarantee scheme that will act as collateral/security for 80 percent of the loan amount; thus, reducing the physical collateral required from the borrowers.

CFGS-TR will support new loan disbursements in the banking sector to SMEs. Meanwhile, PFIs will be able to offer higher loans and the risk exposure will be shared with CGCC up to 80 percent.

According to a press release the Co-Financing Guarantee scheme – Tourism is a sub-credit guarantee scheme under the Co-Financing Guarantee scheme offered by the CGCC to participating financial institutions on the loans lent out under the Tourism Recovery Co-Financing schemes of SME Bank of Cambodia.

Hong Vannak, an economic researcher at the Royal Academy of Cambodia, said that the provision and receipt of a loan with legal guarantees have played an important role in the growth of the economy, particularly, in a crisis caused by Covid-19.

When the financial sector is stable, there is a lot of investment and job creation. On the other hand, when small and medium enterprises have sufficient capital, it also helps to increase production processes and reduce imports and increase exports, he added.

He further said that providing credit guarantees has helped both lenders and borrowers to have confidence in each other because before daring to guarantee, the CGCC always has conditions and studies the business first.

(Article from Khmer Times: Publication on July 14, 2022)

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