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Tag: Financial Inclusion

Entrepreneurship Program Initiative of CGCC (EPIC) 3rd Series of 2024

Posted on by Sorn Chhorvyvatey

On 06 December 2024, at the Business Development Center, Credit Guarantee Corporation of Cambodia (CGCC), and J Trust Royal Bank, co-organized the EPIC 3rd Series of 2024 on “Effective Business Operation in the Digital Age for MSMEs”, participated by around 50 trainees from the Micro, Small, and Medium Enterprises (MSMEs), in which approximately 65% are women entrepreneurs, and around 10 students from the AMT scholarship-Alumni Association.

The EPIC 3rd Series of 2024 was attended with high honor for the certificate presentation ceremony to all participants, trainers and distinguished speakers by His Excellency Dr. Mey Vann, Secretary of State, Ministry of Economy and Finance and the chair of the Group 6 of the A.M.T Scholarship Students-Alumni Association, and under the honor presence of Lok Chumteav You Bory, Vice President of the Cambodian Women’s Association, Mr. No Lida, CEO of CGCC, Ms. Hang Chuon Narita, Chief of Corporate Banking of J Trust Royal Bank, Mr. Pea Vanchhay, Head of SME of Corporate Banking of J Trust Royal Bank, and the management teams of both CGCC and J Trust Royal Bank.

Through this EPIC 3rd Series of 2024, all participants learned about “Business Operations in the Digital Age for MSMEs” shared by Ms. Sem Sreytouch, Founder of EPL Pollinate Enterprise and President of Cambodia Honey Association. Ms. Sreytouch shared comprehensive digital tools to streamline business operations, how to use digital tools to increase sales, business operation management, customer relations and promotion of products or services, cyber security, and shared strategies for adapting to future market trends and digitalization to stay sustainable and competitive in the digital era. All participants also shared their own practical experiences with each other through active group discussions on topics surrounding the importance of using digital tools and systems, challenges in transitioning to digital, and suggestions or requests for enhancing the performance of MSMEs.

In addition, participants also learned about “Credit Guarantee Mechanisms to Support Access to Finance for SMEs” through a presentation by Ms. Lim Chanthida, Director of Centralized Operations of CGCC. In line with the credit guarantee mechanism, Mr. Poch Pisal, Relationship Manager of SME of Corporate Banking of J Trust Royal Bank, also shared  “Credit Assessment Process and Financial Solutions for Businesses, and in particular, Support for Women Entrepreneurs.” with participants.

Capacity-building is one of the priorities of CGCC in the mission of improving financial inclusion and developing SMEs in Cambodia. EPIC is the flagship entrepreneurs’ capacity-building program of CGCC that will provide training to MSMEs on relevant and practical topics of business operations and management for entrepreneurs in collaboration with related stakeholders/Participating Financial Institutions/participants.

 

Maybank’s New Financing Scheme to Boost SMEs

Posted on by Sorn Chhorvyvatey

Maybank Cambodia, in partnership with the USAID-funded Feed the Future Cambodia Harvest III project and the Credit Guarantee Corporation of Cambodia (CGCC), on Saturday launched the ‘SME Export Finance Solution’ to support the growth of Small and Medium Enterprises (SMEs) in the country.

This initiative also includes the Building Capacity and Capability (BCC) programme for SMEs.

The partnership between the three parties aims to elevate the competitiveness of local SMEs on the global stage, fostering sustainable growth and strengthening Cambodia’s presence in international markets.

By offering tailored financial products—such as working capital loans, trade finance, competitive foreign exchange in 21 currencies, remittance solutions, and export credit facilities—the initiative equips SMEs with resources to overcome financial barriers.

The launch of the ‘SME Export Finance Solution’ was marked by the signing of an agreement between Rath Sophoan, Chief Executive Officer and Country Head of Maybank Cambodia and Nimish Jhaveri, Chief of Party of Feed the Future Cambodia Harvest III.

In his welcoming remarks, Sophoan said that the SME Export Finance Solution will be a game-changer for Cambodian businesses aiming to expand exports to existing or new international markets.

“By empowering SMEs to overcome traditional barriers to finance, this partnership advances individual business growth while contributing to the broader economic development of Cambodia,” he stated.

“As SMEs are the backbone of the Cambodian economy, by equipping them to succeed in export markets, this collaboration will fuel job creation, foster sustainable economic growth, and strengthen Cambodia’s position as a competitive player in the ASEAN region and beyond,” Sophoan noted.

“This initiative also reinforces Maybank’s commitment to its role as the Best ASEAN Bank in Cambodia, leading the way in regional economic empowerment,” he added.

Nimish Jhaveri, Chief of the Party of Feed, the Future Cambodia Harvest III, said the new trade financing solution would provide SMEs with the necessary capital to manage production costs, invest in quality improvements, and fulfil international orders.

“An effective trade financing solution is crucial for these enterprises, as it not only helps bridge cash flow gaps but also enables them to compete more effectively by facilitating timely deliveries and expanding their market reach,” he noted.

“Together, we ensure that these enterprises are equipped not only with financial resources but also with the knowledge and expertise required to succeed globally,” Jhaveri added.

In conjunction with the SME Export Finance Solution, Maybank Cambodia, CGCC, and Harvest III also announced the ‘SME Building Capacity & Capability (BCC) Programme 2024 & 2025’, a flagship initiative designed to further equip SMEs with essential business skills and knowledge.

Since its inception in 2021, the BCC Programme has trained hundreds of SMEs on business fundamentals, advanced techniques, and modern technologies.

Building on this success, in 2024 and 2025, the programme aims to deliver specialised sessions on trade finance solutions, financial management, and strategic planning, led by industry experts from the accounting and business, consulting, and finance sectors. This training empowers SMEs with practical insights and skills needed to enhance their operations and optimise their growth potential.

No Lida, CGCC’s Chief Executive Officer, expressed his strong support for this initiative, stating that the BCC programme equips SMEs with essential skills and knowledge, empowering them to access finance and expand their businesses.

“Through this initiative, we can help improve financial literacy and lay the groundwork for SMEs to thrive locally and internationally. This programme is a crucial step toward our shared vision of fostering a resilient and dynamic SME sector that significantly contributes to Cambodia’s economic growth,” Lida said.

With this initiative, Maybank Cambodia, Harvest III, and CGCC are building a robust support ecosystem for Cambodian SMEs, positioning them to thrive in domestic and global markets.

This initiative provides SMEs with the resources, knowledge, and confidence to scale their businesses and pursue international opportunities through the combined power of financial solutions, capacity-building programmes, and reduced collateral requirements through credit guarantees.

 

Credit to: Khmer Times, published on 25 November 2024

CGCC Provides $240 Million Worth Credit Guarantees for MSMEs

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $240 million to micro, small and medium-sized enterprises (MSMEs) as their working capital for expansion.

“As of the end of October 2024, CGCC has supported 2,858 MSMEs by providing credit guarantees for their loan applications, amounting to $240.59 million,” CGCC said in a press release on Wednesday.

The outstanding guaranteed loan as of October was $142.78 million while the outstanding guaranteed amount was $104.36 million, read the report.

There are 2,683 micro, small and medium enterprises (MSMEs) and 175 large businesses in Cambodia, the report said, adding that 1,247 of the businesses were women-owned.

Ros Seilava, Secretary of State at the Ministry of Economy and Finance, said that the CGCC plays a role in developing credit guarantee mechanisms that lead to the development of financing mechanisms and financial products that can contribute to economic diversification and increasing competitiveness in line with the Pentagonal strategy for growth.

“While the global economic model is changing, the CGCC has an important role to play in supporting small and medium-sized enterprises to have access to adequate financing to seize investment opportunities, increase employment and revenue aims to boost economic growth and achieve Cambodia’s vision in 2030 and 2050,” he said.

The CGCC scheme involves 28 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.

CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.

In January this year, CGCC also launched its guarantee for corporate bonds listed on the Cambodian Stock Exchange.

This marks the diversification of its guarantees beyond bank loans to guarantee corporate bonds issued by larger-sized SMEs.

 

Credit to: Khmer Times, published on 14 November 2024

 

Empowering Local SMEs to Compete Globally: New Export Finance Solution and Capacity-Building Programme Launched

Posted on by Sorn Chhorvyvatey

Phnom Penh, 23 November 2024 – Maybank Cambodia, in partnership with the USAID-funded Feed the Future Cambodia Harvest III project, is proud to announce the launch of the SME Export Finance Solution, providing tailored SME and trade financing options to empower Cambodian SME exporters to the global market. This programme also includes the Credit Guarantee Scheme and the Building Capacity & Capability (BCC) programme for SMEs, developed in collaboration between Maybank Cambodia and the Credit Guarantee Corporation of Cambodia (CGCC).

This partnership aims to elevate the competitiveness of local SMEs on the global stage, fostering sustainable growth and strengthening Cambodia’s presence in international markets. By offering tailored financial products—such as working capital loans, trade finance, competitive FX in 21 currencies, remittance solutions, and export credit facilities—the initiative equips SMEs with essential resources to overcome financial barriers and pursue international growth. This marks a transformative milestone for Cambodian SMEs, providing a pathway to expand operations, increase revenue, and secure their place in the global marketplace.

Mr. Rath Sophoan, Chief Executive Officer and Country Head of Maybank Cambodia, commented on the partnership, stating, “The SME Export Finance Solution is a game-changer for Cambodian businesses aiming for expanding exports to existing and or new international markets. By empowering SMEs to overcome traditional barriers to finance, this partnership advances individual business growth while contributing to the broader economic development of Cambodia.”

“SMEs are the backbone of the Cambodian economy, and by equipping them to succeed in export markets, this collaboration will fuel job creation, foster sustainable economic growth, and strengthen Cambodia’s position as a competitive player in the ASEAN region and beyond. This initiative also reinforces Maybank’s commitment to its role as the Best ASEAN bank in Cambodia, leading the way in regional economic empowerment,” he added.

Aligned with the objectives of Feed the Future Cambodia Harvest III —a five-year USAID-funded Activity focused on fostering inclusive and sustainable growth in Cambodia’s agriculture and SME sectors—this collaboration supports diversification, resilience, and competitiveness among Cambodian SMEs. By engaging private-sector partners and key stakeholders, the project aims to strengthen SMEs’ capacity to contribute meaningfully to Cambodia’s economic development and ultimately improve livelihoods for Cambodians.

Mr. Nimish Jhaveri, Chief of Party of Feed the Future Cambodia Harvest III, remarked, “With this new trade financing solution, we can provide SMEs with the necessary capital to manage production costs, invest in quality improvements, and fulfill international orders. An effective trade financing solution is crucial for these enterprises, as it not only helps bridge cash flow gaps but also enables them to compete more effectively by facilitating timely deliveries and expanding their market reach. Together, we ensure that these enterprises are equipped not only with financial resources but also with the knowledge and expertise required to succeed globally. This partnership plays a pivotal role in enhancing Cambodia’s export potential and advancing the country’s sustainable economic growth.”

In conjunction with the SME Export Finance Solution, Maybank Cambodia, CGCC, and Harvest III also announce ‘SME Building Capacity & Capability (BCC) Programme 2024 & 2025’, a flagship initiative designed to further equip SMEs with essential business skills and knowledge. Since its inception in 2021, the BCC Programme has provided hundreds of SMEs with training on business fundamentals, advanced techniques, and modern technologies. Building on this success, in 2024 the programme will deliver specialized sessions on trade finance solutions, financial management, and strategic planning, led by industry experts from accounting & business, consulting, and finance sectors. This training empowers SMEs with practical insights and skills needed to enhance their operations and optimize their growth potential.

Mr. No Lida, Chief Executive Officer of CGCC, expressed his strong support, stating, “The BCC Programme equips our SMEs with essential skills and knowledge, empowering them to access finance and expand their businesses. Through this initiative, we can help improve financial literacy and lay the groundwork for SMEs to thrive both locally and internationally. This programme is a crucial step toward our shared vision of fostering a resilient and dynamic SME sector that significantly contributes to Cambodia’s economic growth. Furthermore, the initiative is strengthened by CGCC’s Credit Guarantee Scheme, which addresses one of the biggest challenges faced by SMEs: insufficient collateral. By easing collateral requirements, we expand financing options, allowing SMEs to access the capital they need for sustainable growth.”

Together, Maybank Cambodia, Harvest III, and CGCC are building a robust ecosystem of support for Cambodian SMEs, positioning them to thrive in both domestic and global markets. Through the combined power of financial solutions, capacity-building programmes, and reduced collateral requirements through credit guarantee, this initiative provides SMEs with the resources, knowledge, and confidence to scale their businesses and pursue international opportunities.

This strategic alliance demonstrates a shared commitment to building a resilient, inclusive, and globally connected SME in Cambodia. Maybank Cambodia, CGCC, and Harvest III are paving the way for a future where Cambodian businesses are equipped to contribute significantly to the national economy while enhancing the country’s presence on the global stage.

CGCC Participated in the 36th Asian Credit Supplementation Institution Confederation (ACSIC) Conference in Nepal

Posted on by Sorn Chhorvyvatey

From 20 to 25 September 2024, CGCC delegation led by H.E Dr. Mey Vann, Secretary of State of the Ministry of Economy and Finance and Chairman of the CGCC Risk Management Committee attended the 36th Asian Credit Supplementation Institution Confederation (ACSIC) in Kathmandu, Nepal, organized by the Deposit and Credit Guarantee Fund of Nepal under the theme “Financing Innovations for Economic Growth”.

Through this conference, HE Dr. Mey Van was invited to deliver a speech of interest after the official announcement of CGCC being the ACSIC member from 2024 onwards, thanking all ACSIC members for their support and welcoming CGCC as an official member and expressing the commitment for Cambodia to hosting the ACSIC Training Program for 2026.

Moreover, Mr. No Lida, CEO of CGCC, was also invited as a keynote speaker to share about CGCC’s credit guarantee and bond guarantee, especially to support small and medium enterprises through priority work on green financing projects. In addition, Mr. No Lida shared about the CGCC Capacity Building Program, which aims to support businesses, the involvement of credit guarantee mechanisms to increase employment opportunities, address climate change and gender equality, and consider financing solutions, sustainability and innovation through learning from good experiences from the member countries.

Through this conference, delegations from ACSIC member countries / observers presented on the progress of their respective credit guarantee schemes, as well as discussions on key topics such as financial innovation mechanisms, institutional risk management, credit guarantee, the use of digital systems (AI) and sustainable development.

The 36th ACSIC Conference was attended by more than 100 representatives of ACSIC members and relevant institutions such as the World Bank, the Central Bank of Nepal. It should also be noted that ACSIC is the largest association of credit guarantee institutions or similar institutions in Asia, established in 1987 to promote the development of credit guarantee systems for small and medium enterprises through information sharing, consulting and capacity building between the member institutions.

 

No Lida Appointed as CEO of Credit Guarantee Corporation of Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Credit Guarantee Corporation of Cambodia (CGCC) has appointed Mr. No Lida as its new CEO during a formal ceremony held at Oakwood Premier Phnom Penh. The event was presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance (MEF) and Chairman of CGCC, and attended by more than 100 participants, including members of CGCC’s Board of Directors, local and international partners, financial institutions, and business associations. The event marked the official transition of leadership from Mr. Wong Keet Loong, who has led CGCC since its inception.

Mr. Wong, who has been instrumental in building CGCC’s foundation, expressed his gratitude during the ceremony, stating, “I’m honored to have had the opportunity to lead CGCC from its inception to where it is today. CGCC has achieved many milestones, from being the first credit guarantee and bond guarantee institution in Cambodia. It will continue to play a critical role in developing the growth of MSMEs by improving financial access and financial literacy.” Under his leadership, CGCC launched several key initiatives aimed at improving access to credit for small and medium enterprises (SMEs), a cornerstone of Cambodia’s economic development.

New Leadership and Vision

Mr. No Lida, who served as CGCC’s Deputy CEO for the past four years, officially took over as CEO following his appointment, confirmed by Sub-Decree No. 872 ANKR.TT. This decision was approved by Prime Minister Samdech Moha Borvor Thipadei Hun Manet, based on the recommendation of H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister and Minister of the MEF. Mr. No has been a key figure in the development of CGCC and brings more than a decade of experience from his time at the Ministry of Economy and Finance, where he gained significant experience in financial policy and management.

In his acceptance speech, Mr. No stated, “I am deeply honored to have earned the trust of the Board of Directors of CGCC, the Deputy Prime Minister, Minister of Economy and Finance, and most importantly, Samdech Moha Borvor Thipadei Hun Manet, Prime Minister of Cambodia, who appointed me as the CEO of CGCC. I am fully committed to doing my best for CGCC. I will utilize all my abilities to bring CGCC forward as a merit and principle-based institution and always uphold CGCC’s core values of TRUSTS – Trustworthy, Responsible, United, Sustainable, Transparency, and State Policy-Oriented.”

Launch of Sustainable Green Financing Facility

Alongside the leadership transition, CGCC also officially launched the Sustainable Green Financing Facility (SGFF) during the ceremony. This blended financing model, developed in collaboration with the United Nations Development Program (UNDP), aims to support green sector investments in Cambodia. The SGFF will enable development partners and financial institutions to establish a blended financing fund with CGCC, providing capital for green initiatives at favorable terms. The facility is designed to support sustainable development goals by offering financing options to businesses working in the green economy.

Read more: SERC and CGCC Sign MoU to Promote Guaranteed Bonds in Cambodia

As of the end of August 2024, CGCC had provided guarantees for 2,678 loan accounts, amounting to approximately USD 225 million. The organization, which was established in November 2020, continues to play a crucial role in supporting Cambodia’s SMEs, particularly in improving access to financing and promoting financial literacy.

Mr. No Lida’s appointment as CEO is expected to further strengthen CGCC’s position in the financial sector and drive its mission to support the growth of SMEs and green investment opportunities across Cambodia.

 

Credit to: Cambodia Investment Review, Published on 04 October 2024

 

Outgoing CEO Reflects on Remarkable Changes Introduced to CGCC

Posted on by Sorn Chhorvyvatey

Starting out as a government organisation that wanted to support SMEs in Cambodia during the pandemic, the Credit Guarantee Corporation of Cambodia (CGCC) has grown from credit guarantees to green financing and bond guarantees under the leadership of its CEO Wong Keet Loong. He’s been with CGCC since its inception to set up the company in October 2020. Today, CGCC has guaranteed an impressive $230 million in credit in 2,800 guarantees. Wong, of course, is no newbie to the world of credit given his prior experience working for the Credit Guarantee Corporation (CGC) of Malaysia. With 25 years of experience in banking, he’s a global expert on finance with stints in countries like Sri Lanka, Zimbabwe, among others. A certified chartered account, Wong has been a member of the Association of Chartered Certified Accountants (ACCA) since 1994.

The Credit Guarantee Corporation of Cambodia (CGCC) today has become a vital cog in Cambodia’s economy. Starting in the middle of Covid-19, the state-owned company’s guarantees provided a buffer of safety for many banks and financial institutions to continue lending to the country’s economy.

Wong Keet Loong – who earlier worked with the Credit Guarantee Corporation of Malaysia – was with the founding team of CGCC to start the enterprise from scratch. As the first CEO of CGCC, Wong has certainly left a towering legacy for the industry. Ministry officials, who spoke to Khmer Times, hailed the role he’s played in steering CGCC.

In an exclusive interview with Khmer Times, Wong says he also had the guidance of Ros Seilava, Secretary of State, Ministry of Economy and Finance and Chairman of CGCC, among other officials to help him navigate his new role.

CGCC’s journey started in July 2020 at the policy level and Wong was brought in – in an official capacity in October 2020. In the next nine months, Ministry officials set about creating a policy framework and guidelines for operations. “By March 2021, we launched our first credit guarantee scheme,” says Wong.

“When we started, our vision was clear: to establish the first credit guarantee institution in Cambodia. I am proud to say that we turned that vision into reality, laying the groundwork for a financial landscape that would support SMEs across the nation,” said Wong, adding, “CGCC was incorporated on November 3, 2020, and we started operations after four months when we launched our first Business Recovery Guarantee Scheme (BRGS).”

While 2021 had a slow start as CGCC tried to bring awareness to market participants on the need for credit guarantees, by 2022 the pace of its loan guarantees picked up. “In 2021, we guaranteed loans amounting to $21.3 million for 194 accounts. By 2022, we’d accelerated and guaranteed loans amounting to $71.4 million to 791 businesses,” said Wong, adding, “We maintained this pace in 2023 and guaranteed $72 million in loan amount for 943 accounts.” In total, CGCC guaranteed loans amounting to $164 million to 1,928 micro, small and medium enterprises (MSMEs) as of June 2024.

Today CGCC’s efforts have resulted in the approval of 2,800 guarantees, amounting to an impressive $230 million across all provinces. “A credit guarantee mechanism was much needed in the country. Today, as we enter our fourth year of operation, CGCC has proven to be a vehicle for sustainable financing of MSMEs,” said Wong.

In Cambodia, SMEs represent 70 percent of employment opportunities and contribute 58 percent to the country’s GDP. These SMEs are from diverse fields like agriculture, industry and services.

“But, the government noticed that there was a credit gap. Many were unable to get bank loans, so the government to address this problem created CGCC,” said Wong.

Some of the common hurdles SMEs face to accessing credit is their lack of credible financial records like credit scores and collateral. “They are also impacted by lack of financial literacy and good corporate governance models. But with CGCC backing them, deserving SMEs can now get much-needed credit to expand their business or get fresh capital for new ventures,” said Wong.

Looking at the portfolio of businesses that CGCC guarantees as high as 50 percent were SMEs in services and trade, 3 percent from agriculture, 7 percent from industry with miscellaneous other SMEs formed the remaining 40 percent.

CGCC has also played a vital role in job creation. In 2021, CGCC was instrumental in creating 4,671 jobs among SMEs. This number quadrupled in 2022 to 19,921 and by 2023 went up 40 percent to 28,148 jobs. “In total, CGCC has been instrumental in creating more than 52,740 jobs in Cambodia,” said Wong.

This year, CGCC also launched an “entrepreneurship programme initiative” to promote entrepreneurship and financial literacy among SME owners. In 2023, we reached another remarkable milestone by becoming the first Bond Guarantee institution in Cambodia. As part of that initiative, earlier this month, CGCC signed an MoU with the Securities and Exchange Regulator of Cambodia (SERC) to support Cambodia’s securities market by diversifying credit guarantee services to bond guarantees. It also signed an MoU last month with GuarantCo to provide guarantees for local bonds, an international guarantee company funded by several European countries namely the UK, the Netherlands and Switzerland to provide additional bond guarantee capacity and technical assistance to CGCC.

“A guarantee from us will be reassuring for institutional investors and the public – as CGCC has got a local credit rating of khAAA. It would also be reassuring to prospective bond investors that our partner GuarantCo is a Fitch “stable” and “AA” rated entity,” Wong said. “This achievement marks our support towards all segments of SMEs including larger SMEs by raising bonds guaranteed by CGCC.”

“Our vision has expanded now and we’ve also set up a Sustainable Green Financing Facility and this bond guarantee scheme for which we hope we’ll have a valuable partner in SERC, CSX and partners like GuarantCo,” said Wong.

Ros Seilava, Secretary of State, Ministry of Economy and Finance and Chairman of CGCC, in an earlier interaction, said, “CGCC’s guarantees will promote innovative financing and financial products which will support economic diversification and improve Cambodia’s competitiveness in line with the Pentagonal Strategy-Phase 1 for Growth, Employment, Equity, Efficiency and Sustainability of the Royal Government of Cambodia of the Seventh Legislature of the National Assembly.”

Wong said, he finds it “hard to believe that it has been four years since I first arrived in Cambodia during the Covid lockdowns and reported to work at the Ministry on October 1, 2020. I can still remember those days when it was much quieter and less traffic. It has been an incredible journey together, and what a journey it has been for me!”

In 2020, CGCC launched its first scheme the Business Recovery Guarantee Scheme (BRGS). Today it has as many as five individual guarantee schemes eg. Women’s Entrepreneur Scheme, Co-Financing Guarantee Scheme to support SME Bank’s Co-Financing Scheme and Post-Harvest Fisheries Guarantee Scheme.

“We also launched the Portfolio Guarantee Scheme specially tailored for specific FIs and notably the Rice Export Guarantee Scheme to support the rice exports of 1 million tonnes in 2025. Our current launch of the Sustainable Green Financing Facility (SGFF), our blended financing facility to support Green financing, a facility targeted to promote green technology in addressing climate change.

These guarantee schemes position CGCC to play a vital role in empowering entrepreneurs and developing various sectors,” said Wong.

Wong also said over the years, CGCC has forged strong partnerships with 27 Participating Financial Institutions (PFIs), collaborating to create a robust ecosystem that supports our SMEs.

“I am also pleased to share that CGCC has recorded good financial performance with its total equity increasing from $200 million to $235 million with a growth of 15 percent. With the increase in our equity, it increases our guarantee capacity and sustainability,” said Wong, adding, “This growth is a testament to the hard work, dedication, and unwavering support from every staff member of CGCC and the Ministry.”

Wong said that he is grateful to CGCC’s Chairman, Board of Directors and all our stakeholders and partners ie. development partners eg. World Bank, ADB, UNDP, UNIDO, financial institutions and SME associations. “It has been a privilege to work alongside such dedicated partners and stakeholders who share our vision for a vibrant and inclusive economy. Your collaboration, insights and unwavering support have been the backbone of CGCC’s achievements. I urge you all to continue this journey with us, to keep supporting CGCC as we strive to empower even more SMEs and enhance financial inclusion across Cambodia,” he said.

Wth the new CGCC CEO No Lida all set to take over, Wong said, “I wish CGCC continued success in playing a critical role in developing our SMEs. Together, we can build a brighter future for our entrepreneurs and our economy.”

 

Credit to: Khmer Times, Published on 30 September 2024

 

Appointment and Transfer Ceremony of CEO of CGCC

Posted on by Sorn Chhorvyvatey

On 27 September 2024, Credit Guarantee Corporation of Cambodia (CGCC) organized the “Appointment and Transfer Ceremony of CEO of CGCC”, presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance (MEF), Chairman of CGCC, and honorable presence of the members of Board of Directors (BoDs) of CGCC, local and international partners, financial institutions, business associations, and related stakeholders approximately​ more than 100 participants at the Oakwood Premier Phnom Penh.

This ceremony marked Mr. Wong Keet Loong‘s official farewell and the announcement of CGCC’s new CEO. It was organized to express CGCC’s gratitude for Mr. Wong’s participation in establishing and leading CGCC as the CEO and an opportunity to express his appreciation for related stakeholders’ support and collaboration during his tenure, and also to officially announce the appointment and transfer of the CEO of CGCC through the Sub-Decree No. 872 ANKR.TT, highly approved by Samdech Moha Borvor Thipadei Hun Manet, Prime Minister of the Kingdom of Cambodia, with the recommendation from H.E. Akka Pundit Sopheacha Aun Pornmoniroth, Deputy Prime Minister, Minister of MEF, to appoint Mr. No Lida to be the CEO of CGCC, a key person in the development of CGCC and leading CGCC as the deputy CEO in the last 4 years, and previously served at the MEF for more than 10 years with full of experiences and capacity to continue leading CGCC.

Through this ceremony, CGCC also officially launched the “Sustainable Green Financing Facility (SGFF),” a blended financing model developed in collaboration between CGCC and the United Nations Development Program (UNDP), which will enable development partners and Participating Financial Institutions (PFIs) to establish a blended financing facility with CGCC to provide financing to green sector investments in favorable terms to support the Sustainable Development Goals (SDG). The launching ceremony was highly witnessed by H.E. Chairman and members of the BoDs of CGCC, Mr. Shakeel Ahmad, Deputy Country Representative of UNDP, and CEO of CGCC.

H.E. Ros Seilava mentioned, “The success and growth of CGCC so far have not come by chance; it has come from the professional roles, responsibilities, and commitment of all CGCC management and staffs at all levels, especially the support from good cooperation of all stakeholders, including the government institutions, development partners, associations, participating financial institutions, and SMEs.”

Mr. Wong Keet Loong remarks, “I’m honored to have the opportunity to lead CGCC from its inception to where it is today. CGCC has achieved many milestones, from being the first credit guarantee and bond guarantee institution in Cambodia. It will continue to play a critical role in developing the growth of MSMEs by improving financial access and financial literacy.”

Mr. No Lida mentioned, “I am deeply honored to have earned the trust of the Board of Directors of CGCC, the Deputy Prime Minister, Minister of Economy and Finance, and most importantly, Samdech Moha Borvor Thipadei, HUN MANET, Prime Minister of Cambodia, who appointed me as the CEO of CGCC. I am fully committed to doing my best for CGCC. I will utilize all my abilities to bring CGCC forward as a merit and principle-based institution and always uphold CGCC’s core values of TRUSTS – Trustworthy, Responsible, United, Sustainable, Transparent, and State Policy-Oriented.”

CGCC was incorporated in November 2020 and launched the first credit guarantee scheme on 29 March 2021. As of the end of August 2024, CGCC had approved 2,678 guaranteed accounts on guaranteed loans amounting to approximately USD 225 million.

 

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MAFF, CGCC ink pact to Develop Modern Farming Community

Posted on by Sorn Chhorvyvatey

Ministry of Agriculture, Forestry and Fisheries (MAFF) and Credit Guarantee Corporation of Cambodia (CGCC) Tuesday signed a Memorandum of Understanding (MoU) to promote the development of the modern farming community.

The MoU signing ceremony was presided over by Dith Tina, Minister of Agriculture, Forestry and Fisheries (MAFF) and Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of the Board of Credit Guarantee Corporation of Cambodia (CGCC) at the Ministry of Agriculture.

Underlining the essence of the MoU, Tina said the new cooperation will have a production based on market demand, good quality, reduce production cost and economic efficiency.

Tina further said that developing the modern farming community is the priority of the Royal Government of Cambodia.

“Modern farming community plays an important role and acts as a strong shield in helping farmers who lack technology, face climate change challenges, lack credit and face market risks. Farmers who volunteer to become members of the modern farming community will receive sufficient investment and capital for potential agricultural products such as rice, cassava and cashews,” the minister said.

Applauding the Credit Guarantee Corporation of Cambodia (CGCC), Tina said CGCC is a good partner in evaluating and providing key inputs to the business plan for the modern farming community to become a reality and be successful.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises.

Khim Finan, Undersecretary of State and spokesman for the MAFF wrote on his social media on Tuesday that the MoU between the Ministry of Agriculture and the CGCC will open the way for modern farming communities to have capital to cover their operating expenses and as well as receive lower interest rates than other general loans.

“Due to the robustness of the business plan and the clear marketing contracts in advance, CGCC is prepared to provide a credit guarantee service on behalf of the community, which will allow the community to have enough resources to run its operations with no need for each member to have bank debt. This is another important step for our modern community,” said Finan.

Speaking at the ‘7th Cambodia Rice Forum 2024’ under the theme ‘Transforming the Cambodia Rice Supply Chain to be Resilient, Inclusive and Sustainable’, Prime Minister Hun Manet lauded the efforts and achievements of modern farming communities and called for more such farming communities across the country.

He added that so far, the development has taken place with 8 modern farming communities covering almost 2,000 hectares in the first phase, and he called on keep continuing to do so to grow even more.

 

Credit to: Khmer Times, Published on 19 September 2024

 

SERC, CGCC Sign Pact to Promote Issuance of Guaranteed Bonds

Posted on by Sorn Chhorvyvatey

The Securities and Exchange Regulator of Cambodia (SERC) and Credit Guarantee Corporation of Cambodia Friday partnered to promote the issuance of guarantee bonds.

The memorandum of understanding was signed by SERC Director-General Sou Socheat and Wong Keet Loong, Chief Executive Officer of Credit Guarantee Corporation of Cambodia (CGCC).

The MoU aims to promote the development of the securities sector and the issuance of guaranteed bonds by supporting companies and financial institutions to obtain additional capital through the issuance of bonds including green bonds, social bonds, sustainability-linked bonds and sustainability bonds which are supported and guaranteed of repayment in case default by local guarantor to enhance local capital mobilization more effectively.

Both institutions also co-organized a workshop on “Benefits and Opportunities of Issuing Guaranteed Bonds in Cambodia” to raise awareness and disseminate the requirements to obtain guarantees for bonds and for small and medium enterprises (SMEs) and related institutions as well as highlight the benefits and opportunities of issuing guaranteed bonds.

Socheat said, “The MoU will attract more companies, including SMEs, to seek financing through the securities market and provide additional benefit for listed companies having demands for additional sources of financing in the form of bond issuance or other forms of debt, with the opportunities to obtain guarantees with special rates.”

Wong said that as the first and only bond guarantee institution in Cambodia, CGCC will play a key role in developing the growth of bond issuance listed on the Cambodia Securities Exchange (CSX). “This MoU with SERC is strategic to develop and work towards enhancing the securities framework to promote higher bond issuance to raise funding and attract more domestic and foreign investors,” he said.

This MoU will enable both parties to achieve the shared goal in terms of mutually supporting SERC for the development of the bond market, and CGCC to be the leading bond guarantee institution in Cambodia for improving financial inclusion and developing SMEs in Cambodia, said Ros Seilava, Secretary of State of the Ministry of Economy and Finance.

“This cooperation will bring a positive impact on the bond market in Cambodia by encouraging the issuance and investment of more bonds, including green bonds, social bonds, and sustainable bonds,” Seilava said.

 

Credit to: Khmer Times, Published on 02 September 2024