Micro-Finance Archives - Page 10 of 16

CBC, CGCC team up on SME, women’s access to finance

Posted on August 14, 2022June 7, 2023 by Sorn Chhorvyvatey

Credit to: The Phnom Penh Post, 14 August 2022

State-owned enterprise Credit Guarantee Corporation of Cambodia (CGCC) on August 11 announced that it had entered into a partnership with independent financial information provider Credit Bureau (Cambodia) Co Ltd (CBC) to improve access to financing for women and smaller businesses.

The two institutions signed a memorandum of understanding (MoU) to that effect on the same day, to enhance financial inclusion for women and small- and medium-sized enterprises (SME), promote the CGCC’s credit guarantee support schemes, and develop data analytics capabilities among formal lenders to improve the decision-making process in credit granting, the state-owned firm noted in a statement.

“The cooperation between CBC and CGCC will expand access to credit, by providing more transparent loan assessment to women and SMEs,” it said.

Under the MoU, CBC will provide credit history information “bridging the information asymmetry between borrower and lenders, thus, reducing transaction costs of lending and promoting access to finance.

“CGCC [will provide] credit guarantees on loans disbursed by participating financial institutions [PFI] to support viable businesses and individuals that lack collateral when seeking access to finance. Especially, in the context of the economic slowdown from the [Covid-19] pandemic, support from CGCC has been instrumental in driving economic growth, fuelling employment and stabilising the economy,” it added.

CBC CEO Oeur Sothearoath said in the statement: “This partnership marks a milestone in enhancing financial inclusion to women and SMEs owners as well as assuring a fair, reliable and data-driven approach in enabling access to finance for in the country.

“This collaboration between CBC and CGCC shall strengthen our financial infrastructure and streamline the much needed support for SMEs,” he said.

Speaking in the statement, CGCC CEO Wong Keet Loong pointed out that “with this MOU, CGCC will be able to build the credit profile of guaranteed loans by using CBC’s K-score as a reference for credit rating of our guaranteed borrowers”.

In a previous interview with The Post, Sothearoath explained that the K-Score, or Khmer Score, is a measure of “applicants’ potential credit risk at the point of application and predicts the likelihood of payment default in the next 12 months”.

Wong added that “when PFIs report the conduct of guaranteed loans in their monthly reporting to CBC, this data would be useful to capture the profile of Cambodian SME borrowers with guaranteed loans. This would further facilitate access to financing for SMEs”.

The statement said the collaboration would enable financial institutions “to use digitalization, advanced reporting, and data analytics tools from CBC to conduct an accurate risk assessment of borrowers and monitor their performance”.

“Through this collaboration, the two institutions also commit to cooperate in financial education and awareness activities to promote financial inclusion in the country,” it said.

You also might interested CGCC’s Co-Financing Guarantee Scheme to help Tourism Sector

CGCC and Credit Bureau partnership to promote SME and women’s access to finance

Posted on August 11, 2022June 7, 2023 by Sorn Chhorvyvatey

Phnom Penh, Cambodia, 11 August 2022 – Credit Guarantee Corporation of Cambodia Plc. (CGCC) and Credit Bureau (Cambodia) Co., Ltd. (CBC) signed a Memorandum of Understanding to strengthen financial inclusion for women and SMEs through the promotion of a credit guarantee support scheme and the adoption of data analytics in credit decision-making by financial institutions across Cambodia. The cooperation between CBC and CGCC will expand access to credit, by providing more transparent loan assessment to women and SMEs.

As the only credit reporting service provider in the country, CBC provides credit history information bridging the information asymmetry between borrowers and lenders, thus, reducing transaction costs of lending and promoting access to finance. Over the years, CBC’s credit reporting services and a portfolio of data analytics solutions have eased barriers to credit for many Cambodians and reduced industry-wide credit risk management. CBC’s role as a key financial infrastructure is significant to maintaining financial sector stability for the country.

CGCC and Credit Bureau partnership to promote SME and women’s access to finance

CGCC provides credit guarantees on loans disbursed by participating financial institutions to support viable businesses and individuals that lack collateral when seeking access to finance. Especially, in the context of the economic slowdown from the pandemic, support from CGCC has been instrumental in driving economic growth, fueling employment, and stabilizing the economy.

Mr. Oeur Sothearoath, Chief Executive Officer of CBC said, “This partnership marks a milestone in enhancing financial inclusion to women and SME owners as well as assuring a fair, reliable and data-driven approach in enabling access to finance for in the country. This collaboration between CBC and CGCC shall strengthen our financial infrastructure and streamline the much-needed support for SMEs.”

Credit Guarantee Corporation of Cambodia Plc. and Credit Bureau (Cambodia) Co., Ltd. ink partnership to promote SME and women’s access to finance — CGCC and Credit Bureau partnership to promote SME and women’s access to finance

Mr. Wong Keet Loong, Chief Executive Officer of CGCC said “With this MOU, CGCC will be able to build the credit profile of guaranteed loans by using CBC’s K-score as a reference for credit rating of our guaranteed borrowers. When PFIs report the conduct of guaranteed loans in their monthly reporting to CBC, this data would be useful to capture the profile of Cambodian SME borrowers with guaranteed loans. This would further facilitate access to financing for SMEs.”

While it is mandatory for every lender to check the credit report of borrowers from CBC during loan assessment, CGCC and CBC will collaborate to enable the financial institutions to use digitalization, advanced reporting, and data analytics tools from CBC to conduct an accurate risk assessment of borrowers and monitor their performance.

Through this collaboration, the two institutions also commit to cooperating in financial education and awareness activities to promote financial inclusion in the country.

About CBC

Since 2012, CBC is the leading provider of financial information, analytical solutions, and credit reporting services to financial institutions and consumers in the Kingdom of Cambodia. CBC assists customers in managing the risks and rewards of commercial and financial decisions through a range of solutions, including Consumer Credit Reports, Commercial Credit Reports, K-Score, Data Analytical Reports, Portfolio Monitoring Services, Portfolio Review Services, and Customized Solutions. CBC serves a member base of 180 financial institutions with credit histories of more than 7 million borrowers.

About CGCC

CGCC is a state-owned enterprise operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF), and officially incorporated in November 2020. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion. As of the end of July, CGCC has supported 591 businesses by providing credit guarantees for their loan applications, amounting to USD 57.4 million equivalent. CGCC has provided the most guarantee to SMEs, which is accounted for 96% of the total businesses receiving the credit guarantee from CGCC.

Also check: CGCC’s Co-Financing Guarantee Scheme to help Tourism Sector

PRESS RELEASE CGCC Launches Co-Financing Guarantee Scheme for Tourism to support the Recovery and Growth of Tourism Sector

Posted on July 12, 2022June 9, 2023 by Sorn Chhorvyvatey

To support the Government’s policy on recovery and growth of the Tourism Sector, the Credit Guarantee Corporation of Cambodia (CGCC) is pleased to launch the “Co-Financing Guarantee Scheme for Tourism (CFGS-TR)” after the highest approval from H.E. Akka Pundit Sapheacha Deputy Prime Minister, Minister 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.

CFGS-TR of CGCC and TRCS of SME Bank are the joint efforts of 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% 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 loan amounts, and the risk exposure will be shared with CGCC up to 80%.

For more information, please contact CGCC via 023 722 123, or visit CGCC’s official website www.cgcc.com.kh.

Phnom Penh, 12 July 2022

Credit Guarantee Corporation of Cambodia

CGCC visits PFIs provincial branches in Battambang, Banteay Meanchey, and Siem Reap, to Enhance Collaboration on the Credit Guarantee

Posted on July 11, 2022June 9, 2023 by Sorn Chhorvyvatey

From 04 July to 08 July 2022, CGCC team led by Mr. No Lida, Deputy CEO of CGCC visits PFIs (selected participating financial institutions) branches 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 Battambang province: AMK Microfinance Institution, ABA Bank, Acleda Bank; Banteay Meanchey province: ABA Bank, Canadia Bank; and Siem Reap Province: ABA Bank, Acleda Bank, AMK Microfinance Institution, Sathapana Bank, and Maybank (Cambodia).

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.

Through these face-to-face discussions with more than hundreds of PFIs’ provincial management and staff, CGCC had 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.

Click here to read about: Loans with Credit Guarantees to Support the Development of SMEs

Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Battambang and Siem Reap Province

Posted on July 11, 2022June 9, 2023 by Sorn Chhorvyvatey

CGCC and Canadia Bank co-organized seminars on “Loans with Credit Guarantees to Support the Development of SME” on 05 July 2022 in Battambang Province and on 07 July 2022 in Siem Reap Province to introduce CGCC’s guarantee schemes and the benefits for both banks and MSMEs in improving access to finance as well as to introduce the bank’s guaranteed loan products to the business owners in these 2 targeted provinces.

Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Battambang and Siem Reap Province — Seminar on “Loans with Credit Guarantees to Support the Development of SMEs” in Siem Reap Province on 07 July 2022

Participants in these seminars included business owners with the coordination of the Cambodia Women Entrepreneurs Associations (CWEA), Young Entrepreneurs Associations of Cambodia (YEAC), and Cambodia Association of Travel Agents (CATA), as well as CGCC team led by Mr. No Lida, DCEO of CGCC, and Canadia Team led by Mr. Song Kimhong, Head of SME Business Division of Canadia Bank.

CGCC hopes that these seminars are helpful for business owners that need loans for their business expansion and working capital but lack collateral when requesting loans to be aware and able to access loans guaranteed by CGCC through the PFIs of CGCC.

Click here to read about: Dissemination Workshop on Access to Credit Guarantee for Businesses in Tourism Sector

9th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

Posted on June 29, 2022June 9, 2023 by Sorn Chhorvyvatey

On 27 June 2022, CGCC organized the 9^th Board of Directors Meeting, under the chairmanship of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, and the chairman of the CGCC’s Board of Directors, with the presence of all members of the Board of Directors.

The agendas of this 9th Board of Directors Meeting included: (1) CGCC Progress Report, (2) Notification of PFIs Application Batch 5, (3) Request for Change of Annual Procurement Plan Implementation, (4) Request for Approval in Principle to Amend Articles of Incorporation of CGCC, (5) Delegation of Approving Authority for Credit Guarantee, and (6) 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 transparency and efficiency of CGCC.

Click here to read about: Dissemination Workshop on Access to Credit Guarantee for Businesses in Tourism Sector

Dissemination Workshop on Access to Credit Guarantee for Businesses in Tourism Sector

Posted on June 28, 2022June 9, 2023 by Sorn Chhorvyvatey

On Friday 24 June 2022, Mr. Wong Keet Loong, CEO of CGCC, together with CGCC’s colleagues participated in the dissemination workshop on “Access to Loans with Credit Guarantees for Businesses in the Tourism Sector”. This dissemination workshop was organized by the Ministry of Tourism and presided over by H.E. Song Tong Hab, Secretary of State of the Ministry of Tourism, with the participation of the management of the Ministry of Tourism, associations, federations, and the business owners in the Tourism Sector.

Mr. No Lida, Deputy CEO of CGCC, presented to the management of the Ministry of Tourism as well as businesses in the Tourism Sector about CGCC’s credit guarantee schemes and mechanism aiming to support tourism businesses’ access to loans with credit guarantees, especially loans without enough collaterals, to order to support the Tourism Sector’s recovery and development.

CGCC has launched 3 credit guarantee schemes to support Micro, Small, and Medium Enterprises (SMEs), large firms, and women-owned businesses for easier access to loans despite collateral challenges through partnerships with banks and Microfinance Institutions (MFIs) to improve financial inclusions and develop SMEs.

Click here to read about: CGCC shares tips to access to guaranteed loans for Women Entrepreneurs

CGCC shares tips to access to guaranteed loans for Women Entrepreneurs

Posted on June 16, 2022June 9, 2023 by Sorn Chhorvyvatey

On 16 June 2022, Mr. Wong Keet Loong, Chief Executive Officer of CGCC, participated as a panelist in the Women Entrepreneurs Forum on “Access to Finance and Markets for Women’s Business Growth”. Mr. Wong has shared the participation of CGCC in supporting financial inclusion for women entrepreneurs, especially in assisting them to get guaranteed loans.

In the panel discussion on “Increase access to information on financial products and services”, Mr. Wong emphasizes the importance of credit guarantees, acting as part of collaterals, to assist women entrepreneurs in obtaining loans from CGCC’s Participated Financial Institutions (PFIs). The credit guarantee mechanism is an additional intervention with favorable features, initiated by the government, to assist women-owned businesses to get formal loans for the purpose of working capital and business expansion, since 61% of the businesses in Cambodia are owned by women.

In addition to the ongoing support for women entrepreneurs from relevant stakeholders, Mr. wong also encourages all women entrepreneurs to be prepared to comply with the conditions of those favorable financing, including the credit guarantee. Credit guarantees that act as parts of collaterals for business loans through CGCC Participating Financial Institutions (PFIs) are eligible for all woman entrepreneurs. In order to obtain this supporting scheme, women entrepreneurs can seek information from CGCC and from CGCC’s 23 PFIs.

This Women Entrepreneurs Forum participates around 200 participants including women and women entrepreneurs, which provides the opportunity for them to access information and solutions addressing business issues, products/services development (e.g. access to finance, product requirements for local chains, how to access legal supports, and digital literacy). CGCC recently launched the third credit guarantee scheme, the Women Entrepreneurs Guarantee Scheme (WEGS), in April 2022, which is specifically designed for women and women-owned businesses, aiming to narrow the gap between the supply and demand for financing by providing a higher guaranteed coverage with favorable credit guarantee features. Women Entrepreneurs can find this scheme information at: https://cgcc.com.kh/en/women-entrepreneurs-guarantee-scheme/

Click here to read about: Courtesy visit by CGCC to NBC to discuss expanding more support to improve financial inclusion

448 Businesses Benefit under Credit Guarantee Scheme

Posted on June 9, 2022June 9, 2023 by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has supported 448 businesses by providing credit guarantees for their loan applications, amounting to $45.5 million as of May 31, according to the latest data.

The total loan amount included both national and foreign currencies with 19.8 billion riels and 40.56 million dollars. The loan sizes were in the range of $6,000 to $1 million. Letters of guarantee for 343 working capital loans, 103 investment expansions, and two capital expenditures were provided, according to a CGCC release.

The CGCC was established by the government in September 2020 as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance.

The scheme is designed to help businesses that have good potential to receive bank loans even if they don’t have any collateral. It provided a merit-based opportunity for Small and Medium Enterprises (SMEs) and Micro and Small Medium Enterprises (MSMEs).

CGCC’s CEO Wong Keet Loong told Khmer Times that a credit guarantee is a financial instrument that supports both financial institutions and small enterprises.

For SMEs and MSMEs, it improves financial inclusion. It enables them to borrow without having the burden of providing collateral whenever their business capacity grows and they have higher loan requirements.

“Small business owners can obtain loans at affordable rates under the scheme. By having access to borrowing, business owners are able to scale up their businesses. We hope to reduce poverty to a certain extent through this,” Loong said.

CGCC launched the $200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support businesses including MSMEs as well as large firms by enhancing their access to formal loans from the Participating Financial Institutions (PFIs) for working capital investment and business expansion.

The scheme is available until the end of this year and the guaranteed loans will be disbursed through the PFIs on a first-come-first-served basis.

Article credit to: Khmer Times, 06 June 2022

Click here to read about: CGCC recommends ways to Access to Guaranteed Loans

CGCC Credit Guarantees Climb to $45.5M

Posted on June 9, 2022June 9, 2023 by Sorn Chhorvyvatey

State-owned Credit Guarantee Corporation of Cambodia Plc (CGCC) has issued credit guarantees totaling $45.5 million to 448 businesses, as of May 31.

Out of the 448 businesses, 431 are small- and medium-sized enterprises (SMEs), and 17 are large, while 138 are owned by women.

CGCC was established by Sub-Decree No 140/ANKR/BK on September 1, 2020, to support businesses, especially SMEs to enable formal loans by guaranteeing lenders that principal and interest payments will be made.

Through its ongoing schemes, CGCC provides credit guarantees on loans disbursed by participating financial institutions (PFI), which include both banks and microfinance institutions (MFI).

In turn, CGCC requests that applicants fully understand PFI’s requirements and make the necessary preparations before taking out loans with credit guarantees.

“Bridging the gap between credit supply and funding demand supports economic growth and CGCC’s missions of providing credit guarantees to businesses and sharing the risk with crediting institutions, and increasing financial inclusiveness,” said CGCC deputy CEO No Lida.

Meanwhile, Hong Vanak, an economic researcher at the Royal Academy of Cambodia, told The Post on June 5 that the provision and receipt of a loan with legal guarantees have played an important role in stabilizing the economy.

The credit guarantee agency also ensured that the process went smoothly, particularly during pandemics.

Vanak said when the financial sector stabilizes, investment and job creation will also increase.

In addition, SMEs with sufficient capital lead to better production processes, resulting in lower imports of goods and increased exports.

“Providing credit guarantees helps lending institutions and lenders [business owners] build confidence in each other,” Vanak said.

He added that prior to guarantees, CGCC requires conditions to be met while it studies the type of business or business. “They [always] ask for clarity first.”

In September, CGCC launched the Co-Financing Guarantee Scheme (CFGS), which is specifically designed for co-financing loans disbursed under the SMEs Co-Financing Scheme Phase II (SCFS II), of Small and Medium Enterprise Bank of Cambodia Plc (SME Bank).

The CFGS is the second credit guarantee scheme offered by the CGCC. The enterprise launched the $200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 in a bid to spur economic recovery during the Covid-19 pandemic.

The CFGS provides a way for CGCC’s PFIs to offer unsecured loans or those that don’t require any form of collateral, to SMEs.

Article credit to Phnom Penh Post, 5 June 2022