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Understanding Credit Guarantee-Interview with Participating Financial Institution (FTB Bank)

Posted on by Sorn Chhorvyvatey

1. What is FTB Bank’s perspective towards the credit guarantee schemes and why does your bank partner with CGCC?

As the first commercial bank in Cambodia, a truly local bank trusted since 1979, FTB has been consistently contributing to develop the local market and economy through relentless supporting projects initiated by the Royal Government of Cambodia (RGC). The Credit Guarantee Corporation of Cambodia (CGCC) is a great initiative of the RGC, which focuses on business owners typically possessing no or insufficient collateral to access credit in a manner that they would otherwise be unable to obtain.

Being one of the earlier Participating Financial Institution (PFI), there are various opportunities presented to FTB, which are inclusive of:

  • Having further participation in the RGC’s initiatives to promote national economic growth by continuing to provide loans to customers who have real financing needs with solid business plan but do lack of collateral to pledge.
  • Contributing to the opportunities of creating jobs and employment for people through offering access to finance through credit guarantees scheme to Small and Medium-Sized Enterprises (SMEs) and Large Enterprises to enable them to enhance productivity and expand their business operations.
  • Creating new business opportunities for the Bank’s own operation through supporting new and existing clients to expand credit portfolio in alignment with the Bank’s strategic plan.

 

2. How do the credit guarantee schemes benefit FTB Bank and your customers?

The credit guarantee schemes offer benefits to FTB and the customers in numbers of ways:

For Bank:

  • Introducing new credit opportunities for customers who need funding but lack of collateral to pledge, as well as represents a significant development in the banking sector, transitioning from traditional collateral-based loans, such as those secured by real estate and other property, to loan covered by the guarantee under this new scheme.
  • Maintaining the existing customers and attracting new potential ones to use FTB Bank’s services by providing flexible loans tailored to their needs and investment plans.
  • Mitigating credit risk by obtaining credit guarantees up to 80% of the loan amount from CGCC

For the Customers:

  • Enabling potential customers access to new loans through financial institutions licensed by the National Bank of Cambodia, even without sufficient collateral.
  • Getting comprehensive financial advice from bank experts who have received proper training from relevant institutions.
  • Empowering customers to expand their businesses according to their set plan.

 

3. So far, which type of loans the Bank use the credit guarantees to support SMEs?

Since being a Participating Financial Institution, FTB has been actively providing all types of loans to customers, such as Business Term Loans, Overdraft Loans and Revolving Loans to support credit guarantee schemes as follows:

  • Rice Export Guarantee Scheme (REGS)
  • Women Entrepreneurs Guarantee Scheme (WEGS)
  • Business Recovery Guarantee Scheme (BRGS)
  • Co-Financing Guarantee Scheme for Tourism (CFGS-TR)

 

4. How should the borrowers prepare themselves to get guaranteed loans from the Bank?

To obtain the guaranteed loans from the FTB Bank, business owners shall meet the following key criteria among various requirements:

  • Businesses with a Cambodian shareholder (shareholding of more than 50%) and sufficient capital to participate in investment projects, intending to utilize the loan in accordance with the CGCC’s requirements.
  • Business registration issued by the legalized government authorities.
  • Unregistered businesses must be registered with relevant authorities after receiving the loan.
  • Businesses with sufficient income to ensure their ability for loan repayment to the bank.

 

5. What is the Bank’s strategy/plan to further expand the disbursement of guaranteed loans in 2024?

In alignment with our strategic plan, FTB will continue to offer guaranteed loans with numbers of key priorities and actions including:

  • Continuing to actively promote our services to both existing and new customers who have a potential and solid plan to expand the business.
  • Developing a training program for all related lending staff to ensure they have a clear understanding and are well equipped to support the customers with their financing needs.
  • Continuing to collaborate with relevant parties to streamline the process of obtaining guaranteed loans to ensure convenience and speed from the CGCC.

 

Read and Download in PDF: Interview with participating Financial Institution (FTB Bank)

 

CGCC Collaborates With GuarantCo and PIDG to Accelerate Financial Inclusion and Enhance Investment in Sustainable Infrastructure in Cambodia

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) GuarantCo and the Private Infrastructure Development Group (PIDG) have signed a Memorandum of Understanding (MoU) which is intended to accelerate sustainable financial inclusion and increase investment opportunities in Cambodia. The collaboration will also facilitate the scale up of CGCC’s capacity through involvement in a range of transaction types with GuarantCo and PIDG Technical Assistance (TA).

Having completed three transactions in Cambodia, GuarantCo is seeking to develop CGCC’s capital market guarantee capability via the PIDG Credit Enhancement Facility initiative. This programme aims to increase the availability of onshore local currency guarantees in target markets through partnering with local entities and utilizing products from across the PIDG Group, in this case re-guarantee facilities from GuarantCo and technical assistance from PIDG TA.

The MoU being signed is the first step towards a broader Framework Agreement, which both parties hope to close and execute later this year, covering syndication of GuarantCo guarantee exposure to CGCC and vice versa, as well as technical assistance.

The Technical Assistance programme will assist CGCC to develop key guarantee documents and engage a transaction counsel to advise on the facility documentation, as well as provide capacity building support on credit, investment and Sustainable Development Impact management processes.

Philippe Valahu CEO of PIDG, said: “Local financing solutions are an essential part of our 2030 strategy and the establishment of in-country credit enhancement facilities is a key objective to help develop local markets. Signing this Memorandum of Understanding with the Credit Guarantee Corporation of Cambodia will help expedite this work.”

Layth Al-Falaki, CEO of GuarantCo, said: “We are proud to have signed this Memorandum of Understanding with the Credit Guarantee Corporation of Cambodia and to be able to mobilise guarantee capacity to help CGCC expand to undertake transactions in progressive sustainable financing through the local capital markets, in line with PIDG and GuarantCo’s strategic plans. GuarantCo’s engagement in Cambodia started in 2022 through transactions with First Finance and Royal Railway followed by Cellcard in 2023. Through this MoU with CGCC, we are continuing our momentum in the country to the advantage of Cambodians who will benefit from improved infrastructure.”

Wong Keet Loong, CEO of the Credit Guarantee Corporation of Cambodia, said: “We are honoured to have the opportunity to work with GuarantCo, an established international guarantee provider, funded by seven G12 governments including the United Kingdom, Switzerland, Sweden, Australia, the Netherlands, Canada and France. CGCC will benefit from the technical expertise to embed best practices into our bond guarantee processes. We are excited with this collaboration and look forward to the structured facility which will expand our guarantee capacity.”

About GuarantCo

www.guarantco.com

About PIDG

www.pidg.org

About Credit Guarantee Corporation of Cambodia

www.cgcc.com.kh

Credit to: KIRIPOST, Publish on 02 August 2024

CGCC, GuarantCo Sign MoU to Promote Bond Market in Cambodia

Posted on by Sorn Chhorvyvatey

State-owned enterprise Credit Guarantee Corporation of Cambodia (CGCC) signed an MoU on Thursday with GuarantCo for a structured facility that enhances guarantee capacity in the bond market space.

Cambodia is unusual in that its bond market is larger than its equities market when in most countries it would be the other way around. The Cambodia Securities Exchange (CSX) has 23 listed companies – 11 offering their equity shares and 12 offering their bonds. But it’s the bond market that is set to see a boost as five more companies are expected to list, which would take the total number of listed bond players to 17 versus 11 equity players.

CGCC said it has a total guarantee capacity of $200 million. “CGCC had an unusual beginning in that it started right in the middle of Covid. We started guaranteeing loans to SMEs. Today we’ve guaranteed loans amounting to $164 million to 1,928 micro, small and medium enterprises (MSMEs) as we mark three years of operation. But 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 GuarantCo,” said KL Wong, CEO, CGCC. He added that it would be reassuring to prospective bond investors that their partner GuarantCo is a Fitch “stable” and “AA” rated entity.

With the partnership, speakers at the events said that CGCC would get technical assistance from GuarantCo on navigating the bond issuances and the bond market. GuarantCo could potentially combine its resources with CGCC to enhance its combined bond guarantee capacity. Also present at the event were Hong Sok Hour, the Royal Government Delegate in Charge as CEO of Cambodia Securities Exchange (CSX) and Seang Thirith, Deputy Director General of Securities and Exchange Regulator of Cambodia (SERC).

“At GuarantCo we are keen on enabling sustainable infrastructure in Africa and Asia. So far we’ve encouraged infrastructure development in low-income countries through the provision of credit guarantees that enable infrastructure projects,” said Nishant Kumar, Managing Director (Asia) of GuarantCo, part of the Private Infrastructure Development Group (PIDG).

“And in many countries we work like Nigeria and Pakistan we’ve had to set up a credit guarantee facility from scratch. But, Cambodia already has a credit guarantor in CGCC. An extremely innovative approach by the government that I’m not sure I’ve seen replicated anywhere else in this region,” said Denesh Srishanker, Credit Enhancement Facility Director, PIDG. “We’re more keen on local solutions to help local markets. And we do want to close the infrastructure funding gap in countries like Cambodia,” he added.

Innovation in funding is something the UK Government is keen on, said Dominic Williams, British Ambassador to Cambodia, while citing Britain’s role as Cambodia’s long-term development partner. “Cambodia has traditionally had a model of relying on the government budget and its external/international development partners. But, guaranteeing bonds for investor confidence could ensure the country gets other sources of funding too for its critical infrastructure projects,” said Williams.

GuarantCo Managing Director Kumar also talked about other projects they have done in the country, including providing a $70 million bond guarantee to CamGSM (popularly known as Cellcard) to finance its telecom infrastructure; its $24 million bond guarantee to Royal Railway Cambodia to invest in the national railway system; and $7 million in debt financing to MFI First Finance for building affordable housing for low-and-middle income groups in Cambodia.

“We are keen on credit enhancement, providing technical assistance to CGCC and creating viable opportunities for private investors in frontier markets,” said Philippe Valahu, CEO, PIDG.

On the timeframe of execution, CGCC CEO Wong said that they (CGCC and GuarantCo) are hoping to do their first combined bond guarantee this year. “On tax incentives, we are not the authority to comment. But I can tell you that we have approached the General Department of Taxation (GDT) and made a representation asking if it would be possible for the government to give some sort of tax incentives for bond investors and those keen on green financing,” said Wong.

Credit to: Khmer  Times, Publish on 02 August 2024

Guarantco and PIDG Partner With CGCC To Boost Sustainable Investment & Boost Onshore Local Currency Guarantees in Cambodia

Posted on by Sorn Chhorvyvatey

GuarantCo, the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) have formalized a partnership aimed at accelerating financial inclusion and enhancing investment in sustainable infrastructure in Cambodia. The three entities signed a Memorandum of Understanding (MoU) outlining their collaborative efforts to expand CGCC’s capabilities through a variety of transaction types supported by GuarantCo and PIDG Technical Assistance (TA).

This MoU marks an initial step towards a broader Framework Agreement anticipated to be finalized later this year. The agreement will include the syndication of GuarantCo’s guarantee exposure to CGCC and vice versa, alongside technical assistance to bolster CGCC’s operational capacity. GuarantCo, which has previously completed three transactions in Cambodia, aims to enhance CGCC’s capital market guarantee capabilities through the PIDG Credit Enhancement Facility initiative.

Boost The Availability Of Onshore Local Currency Guarantees

This initiative seeks to boost the availability of onshore local currency guarantees by partnering with local entities and leveraging products from across the PIDG Group, including re-guarantee facilities from GuarantCo and technical assistance from PIDG TA.

Read more: Royal Group Securities and Credit Guarantee Corporation of Cambodia Forge Strategic Partnership to Support Capital Market Development

The Technical Assistance program is set to provide CGCC with essential support, including the development of key guarantee documents, engagement of a transaction counsel for facility documentation, and capacity-building in credit, investment, and Sustainable Development Impact management processes.

Philippe Valahu, CEO of PIDG, emphasized the significance of local financing solutions in their 2030 strategy. “Local financing solutions are an essential part of our 2030 strategy and the establishment of in-country credit enhancement facilities is a key objective to help develop local markets. Signing this Memorandum of Understanding with the Credit Guarantee Corporation of Cambodia will help expedite this work,” Valahu stated.

Layth Al-Falaki, CEO of GuarantCo, expressed pride in the collaboration. “We are proud to have signed this Memorandum of Understanding with the Credit Guarantee Corporation of Cambodia and to be able to mobilise guarantee capacity to help CGCC expand to undertake transactions in progressive sustainable financing through the local capital markets, in line with PIDG and GuarantCo’s strategic plans. GuarantCo’s engagement in Cambodia started in 2022 through transactions with First Finance and Royal Railway followed by Cellcard in 2023. Through this MoU with CGCC, we are continuing our momentum in the country to the advantage of Cambodians who will benefit from improved infrastructure.”

Enhancing Cambodia’s Financial and Infrastructural Landscape

Wong Keet Loong, CEO of CGCC, highlighted the benefits of the partnership. “We are honoured to have the opportunity to work with GuarantCo, an established international guarantee provider, funded by seven G12 governments including the United Kingdom, Switzerland, Sweden, Australia, the Netherlands, Canada, and France. CGCC will benefit from the technical expertise to embed best practices into our bond guarantee processes. We are excited with this collaboration and look forward to the structured facility which will expand our guarantee capacity.”

This partnership signifies a strategic move towards enhancing Cambodia’s financial and infrastructural landscape, promoting sustainable development, and increasing investment opportunities within the region.

 

Credit to: Cambodia Investment Review, Published on 01 August 2o024

 

Entrepreneurship Program Initiative of CGCC (EPIC) 2nd series of 2024

Posted on by Sorn Chhorvyvatey

On 20 July 2024, at the Business Development Center, Credit Guarantee Corporation of Cambodia (CGCC) and the Young Entrepreneurs Association of Cambodia (YEAC) co-organized the Entrepreneurship Program Initiative of CGCC (EPIC) 2nd series of 2024 on “MSME’s Best Practices in Obtain and Effectively Managing Formal Financing”, supported by Feed the Future Cambodia Harvest III of USAID,  highly participated by Mr. NimishJhaveri, Chief of Party of Cambodia Harvest III, Mr. Sar Kinal, Executive Vice President of YEAC, and Mr. No Lida, Deputy Chief Executive Officer of CGCC, and distinguished speakers and 51 trainees from Micro, Small, and Medium Enterprises (MSME) in Agriculture sector from Phnom Penh, and 12 Provinces.

Through the EPIC 2nd Series of 2024, all trainees had the opportunity to learn the main training topic “MSME’s Best Practices in Obtaining and Effectively Managing Formal Financing” by Mrs. Chau Lon Molika, CEO and Founder of Cambodian Standard Development & Supply Co., Ltd., and BoD in charge of Commission Access to Finance of YEAC. As also a business owner, Mrs. Molika shared the strategy in financial management and her experience in obtaining formal financing through grants, loans, and other financing options, and also encouraged the trainees to share their experiences as practical inputs to other trainees to get maximum and comprehensively advantages from the formal financing. Trainees also shared their personal experiences through a group discussion on effective financial management.

In addition, trainees also learned about CGCC’s Credit Guarantee Mechanism to Support the Access to Formal Financing of MSMEs especially in the agriculture sector, which is one of the priority sectors of the Royal Government and a core sector of national economic development, through sharing from Ms. Chum Selarath, Manager of Business Development (Bond Guarantee) of CGCC.

In line with the CGCC Credit Guarantee Mechanism, Ms. Mak Davy, Deputy Chief of Medium Business Lending Officer of ABA Bank, also shared the bank’s support for MSMEs in access to the guaranteed loans and the bank loan approval procedures to increase the awareness of MSMEs in obtaining formal financing from the bank and to increase their financial literacy.

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 for entrepreneurs in collaboration with related stakeholders/Participating Financial Institutions.

 

Job Vacancy with CGCC – Head of Credit Management, Deputy Manager of Procurement

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia Plc. (CGCC) is a state-owned enterprise established under the Ministry of Economy and Finance. CGCC was recently set up to improve financial inclusion and develop the growth of SMEs in Cambodia. It plays an important role in the economic development of the country.

We are expanding our team! Join us, If you want to be part of the team, CGCC is urgently seeking qualified candidate for the following positions:

Head of Credit Management

1. Job Overview

  • Will be responsible for overseeing on credit evaluation, credit administration, claim management, Non-Performing Loan and recovery management, management of reporting, and operational credit documentation, supporting the development and enhancement of GMS (Guarantee Management System), managing team, and building a good relationship with PFI.
  • The internal ranking of this position is Manager.

2. Key Responsibilities:

  • Reporting to the Director of Centralized Operations (DCOP) in managing all aspects of centralized operations, including branch operations (if any) credit evaluation and credit administration, loan monitoring and recovery management, claim management, customer satisfaction, feedback management etc.
  • Assist the DCOP to be accountable for all credit evaluation and credit administration related matters e.g., ensure loan is approved within the provided Turn Around Time (TAT), manage claim request and proceed with claim settlement upon all term and conditions are fulfilled and accurate etc. and authorize all core systems data input (data amendments etc.)
  • Support and assist the DCOP on implementing operational matters of all CGCC’s credit guarantee schemes and bond guarantee to ensure the sustainability of CGCC’s product and service.
  • Assist the DCOP in supporting the development & enhancement of GMS (Guarantee Management System) and derive greater productivity and cost efficiency across all operational processes, including the review for process automation.
  • Assist the DCOP in management of reporting and operational credit documentation and periodic review on Portfolio Guarantee scheme (PGS).
  • Assist the DCOP to develop all credit management and loan monitoring related policies, standard operating procedures and framework and ensure the quality of credit documentation, specifically facility offer letters in line with the approved credit application, credit policies and procedures, prudential guidelines, and other relevant legislation.
  • Support and assist the DCOP to build and supervise a team of appropriate skills to assist him/her in carrying out his/her duties and ensure that they are trained accordingly.
  • Responsible for dealing with issues related to centralized operational matters with proper timeframe and building good relationships with PFIs.
  • Responsible for providing training to existing or new PFIs related to Guarantee Application Form (GAF) filing process and/or monthly report submission to ensure speed up the turnaround time.
  • Carry out any other duties and ad-hoc assignments assigned to him/her by the DCOP or Managements of the CGCC as and when required for CGCC.

3. Qualification Requirements

  • At least 5 years’ experience in the financial industry or banking sector related credit evaluation, credit admin, non-performing Loan, and recovery management.
  • Experience of managing team.
  • Bachelor’s degree in finance, business administration, or a related field
  • Proficiency in relevant software and systems.
  • Analytical and problem-solving skills
  • Attention to detail and accuracy.
  • Ability to work under pressure and meet targets.
  • Age from 30s up to 40s.

 

Deputy Manager of Procurement

Key responsibilities:

  • Organize and prepare annual procurement plan to submit to the Ministry of Economy and Finance (MEF) for review and approval.
  • Supervise and manage the implementation of the procurement plan and prepare quarterly, semi-annual, and annual procurement reports to submit to MEF.
  • Set up, develop, prepare, implement, and improve procurement policies and procedures.
  • Organize annual procurement plans and/or amendment of procurement plans in case of necessity.
  • Organize, monitor and manage all bidding processes for each type of procurement that is determined by the CGCC.
  • Organize to open the public competitive bidding with taking charge in reviewing by procurement committee.
  • Issue the notification on the decision to award contract to the successful bidders by copying it to all failed bidders & organize to advertise the result of bidding.
  • Prepare the report regarding procurement implementation as in Monthly, Quarterly, Semester, and Annual report.
  • Coordinate and facilitate all aspects of procurement procedures.
  • Ensure the CGCC’s procurement is in accordance with the applicable laws and regulations in Cambodia.
  • Carry out any other duties and ad-hoc assignments assigned by the Director of HCA.

Qualification Requirements

  • Bachelor’s degree in Finance, Economics, Accounting, Business Administration, or a related field.
  • At least 3-5 years of experience in Procurement, Finance, or Administration.
  • Strong Communication and negotiation
  • Knowledge of MS. Word, Excel, PowerPoint, Project.
  • Good in English, Writing & Speaking.

 

Deadline: 31st July 2024

 

Investment Support for Post-Harvest Fishery Sector

Posted on by Sorn Chhorvyvatey

PHNOM PENH – An Investment Support Facility (ISF) scheme was launched on May 29 to support fisheries operators with technology, financing, and value chains after the fishing season. 

The aim is to respond to challenges which include inadequate fish-processing technologies, limited value addition, and food safety concerns that impact consumer’s trust and global competitiveness, the UN Industrial Development Organization (UNIDO) says.

It is designed from the CAPFISH-Capture project that is built on the success of its current Value Chain Investment Support, also known as VCIS. It targets over 100 eligible enterprises in the fisheries value chain in addition to the 50 enterprises already being supported by VCIS.

Mey Vann, secretary of state of the Ministry of Economy and Finance and a council member of the Credit Guarantee Corporation of Cambodia (CGCC), said ISF is important in enhancing the fishery sector, as eligible enterprises will be able to access technical support, capacity building and financial assistance.

These include a grant and guaranteed loans with favorable conditions.

The scheme is a blended financing initiative co-founded by the European Union, the Fisheries Administration, UNIDO and CGCC.

It aims to assist fisheries enterprises after the fishery season, input suppliers, and value chain partners, as well as increase productivity with high quality and safety.

Dith Tina, Minister of Agriculture, Forestry and Fisheries, said ISF will contribute to fishers at all levels in processing products in the post-fisheries season, because high quality and safety are the requirements for exports that will help expand productivity sustainably and responsibly.

Meanwhile, Dejene Tezera, UNIDO’s director of agri-business and infrastructure development, believes that such an initiative will “elevate the value and quantity of safe, high-quality fishery products, enabling fish processors to thrive in global markets.”

Investments in innovation and capacity building pave the way for a future where the sector “stand tall on the world stage, delivering excellence, reliability, and prosperity to local communities and beyond,” he said.

Igor Driesmans, EU Ambassador to Cambodia, believes that the ISF, aligned with the global market requirements, will boost the sector’s competitiveness and sustainability and reinforce economic expansion, public health safeguards and job creation.

Credit to: Cambodianess, Publish on 30 May 2024

New Project Boosts 100 Fisheries Enterprises

Posted on by Sorn Chhorvyvatey

A new scheme by the EU-funded CAPFISH-Capture programme aims to support the Kingdom’s post-harvest fisheries sector by improving access to capital.

Through CAPFISH, the Fisheries Administration (FiA), the UN Industrial Development Organization (UNIDO) and the Credit Guarantee Corporation of Cambodia (CGCC) will work together to launch an investment support facility (ISF) scheme.

Building on the success of its current investment support of 50 small enterprises, the ISF scheme will provide technical support and guaranteed business loans to 100 additional businesses.

The funding will allow the small enterprises to overcome challenges such as inadequate fish-processing technologies and limited value addition, as well as food safety concerns which impact consumer trust and the sector’s competitiveness on a global scale, according to a joint statement from the CAPFISH and its partner organisations.

The scheme blends co-financing from the enterprises’ own resources, guaranteed business loans distributed by the local financial institutions and grant support from the project itself. It is co-funded by the EU.

“The ISF will play a pivotal role in enhancing Cambodia’s fisheries sector. Through it, eligible enterprises will be able to access technical support, capacity building, and financial assistance, including grants and loans with favourable conditions,” Mey Vann, member of the CGCC board of directors, was quoted as saying in the statement.

“Ultimately, these efforts will contribute to the government’s overarching goal of securing food supplies and elevating the standard of living for the Cambodian people,” he added.

Dejene Tezera, UNIDO director of agri-business​​ and infrastructure development, expressed his pride in the introduction of the scheme.

“Through investments in innovation and capacity building, we are paving the way for a future where Cambodian fisheries stand tall on the world stage, delivering excellence, reliability, and prosperity to local communities and beyond,” he said.

“The ISF will not only help boost competitiveness and sustainability but also underpin economic expansion, public health safeguards and local job creation. I am optimistic that its success will inspire replication and scale up in other agricultural sub-sectors,” added EU ambassador Igor Driesmans.

In the statement, Dith Tina, Minister of Agriculture, Forestry and Fisheries, acknowledged the invaluable support of the EU and UNIDO.

“This is a great initiative and will support current collaborations between the ministry’s FiA, UNIDO and the private sector,” he was quoted as saying.

“I am positive that this project, which will be implemented by the CAPFISH-Capture programme, will raise the standards and quality of post-harvest fishery products, providing economic benefits to fishermen and the owners and employees of processing enterprises,” he added.

Credit to: The Phnom Penh Post, Published on 29 May 2024

CGCC Participating in the 47th Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)

Posted on by Sorn Chhorvyvatey

Mr. Wong Keet Loong, CEO of CGCC, led the CGCC’s team to participate in the 47th ADFIAP Annual Meeting from 15 to 17 May 2024, at Sofitel Phnom Penh, hosted by the Agricultural and Rural Development Bank (ARDB) of Cambodia.

The 47th ADFIAP Annual Meetings is attended by more than 400 participants from more than 40 countries who are ADFIAP members, representatives from developing partners, representatives from the private sector, and other relevant stakeholders to share experiences from the countries in the Asia Pacific under the topic “DFIs’ Role in Sustainable Finance Ecosystem: Cultivating a climate-smart and sustainable future”. CGCC also submitted an application to be a member of ADFIAP through this annual meeting as well.

 

$30M Credit Guarantee Scheme for Rice Inked

Posted on by Sorn Chhorvyvatey

The state-owned Credit Guarantee Corporation of Cambodia (CGCC), Cambodia Rice Federation (CRF) and participating financial institutions (PFIs) signed an agreement on the $30 million Rice Export Guarantee Scheme (REGS) to help millers stockpile rice for milling, processing, exporting and making local value-added products.

The signing ceremony was held last Friday in the presence of Ros Seilava, Secretary of State of the Ministry of Economy and Finance, the Board of Directors of the CGCC and the management and members of CRF, PFIs and CGCC.

The official cooperation by the three parties on REGS is aimed at increasing the productivity and competitiveness of Cambodia’s rice industry and boosting rice exports in line with the Royal Government of Cambodia’s policy on agriculture.

CGCC launched REGS as a portfolio guarantee scheme, having seven financial institutions participating including AMK Microfinance Institution, Canadia Bank, Foreign Trade Bank of Cambodia (FTB), Maybank (Cambodia), Prince Bank, Sathapana Bank, and Wing Bank (Cambodia).

The scheme will address the financing needs of rice exporters and millers having no collateral to avail of loans from financial institutions, especially during the harvest season.

At the ceremony, Ros Seilava said that the launch of the project is a reflection of the government’s strong commitment to support Cambodian rice production and rice exports through the public credit guarantee scheme, of which CGCC is the operator, by providing guarantee coverage of 80 percent with a maximum loan of up to $3 million.

“The REGS will support the financing needs of rice exporters and rice millers to purchase paddy from farmers to produce rice for exports in line with the government’s policy to increase rice production and exports,” he said.

Chan Sokheang, President of CRF said the rice credit guarantee package will help millers expand their businesses and use the by-products to other sectors such as aquaculture and livestock farming.

“The guarantee package is also an additional incentive for expanding exports to one million tonne per year as set by the rice production policy of the Royal Government, and we believe that this plan will be achieved by 2025,” he added.

Wong Keet Loong, CEO of CGCC, said that the scheme comes with special features – lower guarantee fees, higher guarantee covers and loan interest rate not exceeding 11 percent a year.

“We are supporting the aspirations of the government to export one million tonne of rice by 2025. This is our first tranche for the scheme and we can increase the scheme size if there is higher demand,” Wang said.

Cambodia exported more than 248,000 tonnes of milled rice in the first four months of 2024, earning a total revenue of $170 million, a CRF report showed.

The exported rice varieties included fragrant rice, white rice, parboiled rice and organic rice, among others.

Credit to: Khmer Times, Published on 13 May 2024