SME Development Archives

Women Entrepreneur Scheme 40% of CGCC Guaranteed Loan Book

Posted on August 19, 2024August 21, 2024 by Sorn Chhorvyvatey

More than 40 percent of all loans guaranteed by the Credit Guarantee Corporation of Cambodia (CGCC) have been given to women entrepreneurs, CGCC CEO KL Wong in an exclusive interview told Khmer Times.

Currently, CGCC has guaranteed loans amounting to $200 million to 2,366 micro, small and medium enterprises (MSMEs) accounts as it marked three years of operation. Started during the Covid-19 pandemic to help businesses tide over the economic downturn, CGCC said it now has an outstanding guaranteed loan amount of $129 million and an outstanding guaranteed amount of $94 million from lending to MSME businesses that have provided jobs to more than 52,000 people in Cambodia.

Under the Women Entrepreneurs Guarantee Scheme (WEGS) there are many benefits for women taking a CGCC-guaranteed loan. Among the benefits are lower interest rates with the bank, a lower guarantee fee for the first year and higher coverage of loan guarantee, said Wong. Expanding, he said, that the guarantee fee for SMEs under the CGCC’s Business Recovery Guarantee Scheme (BRGS) was 1 percent. But for women entrepreneurs, this fee has been reduced to 0.5 percent from 1 percent for the first-year of the loan tenure. Apart from that, for SMEs under the BRGS scheme, about 70 percent of the loan is covered/guaranteed by CGCC. Whereas for the women entrepreneur scheme as high as 80 percent of the loan amount is guaranteed by CGCC.

The CGCC so far has supported many women entrepreneurs in diverse fields. One of the beneficiaries of its scheme is Rithypul founder and CEO Bopha Pen. In 2020, her financial awareness startup had a liquidity crunch. Needing working capital for day-to-day operations, she sought a bank loan. However, her collateral proved insufficient till CGCC stepped in and guaranteed her loan with one of its partner financial institutions CAMMA Microfinance.

Today Bopha, runs Rithypul and has launched training centres and a fintech mobile app Kotluy.

Another woman entrepreneur, who has benefitted from CGCC’s loan guarantee, is Thida Kheav’s SOGE. SOGE (also known as Solar Green Energy (Cambodia) Co), which is a renewable energy semiconductor manufacturer, lacked capital outlay for expansion. Till CGCC stepped in.

CGCC CEO KL Wong has said that the government is keen on giving priority to women-led businesses. When it first launched in 2021, about 23 percent of its total borrowers were women. This number went up to 35 percent of total borrowers in 2022. By the end of 2023, as high as 42 percent of CGCC’s total loan portfolio guaranteed is for women.

“We are proud of the gender diversity in our portfolio,” said Wong. CGCC currently has five loan guarantee schemes. Apart from WEGS and BRGS, CGCC has the Co-Financing Guarantee Scheme (CFGS), the Co-Financing Guarantee Scheme for Tourism (CFGS-TR) and Portfolio Guarantee Scheme (PGS).

CGCC CEO said that their scheme is tailored for SMEs, who form a vital part of Cambodia’s economy. SMEs represent 70 percent of employment opportunities in the country and contribute 58 percent to the country’s GDP. CGCC said that it is currently backing SMEs from diverse fields like agriculture, services, industry and services.

Wong also said the WEGS scheme has a ceiling cap for interest rates on loans. For the first-year interest rate the ceiling, inclusive of the first-year guarantee fees, was 8 percent for riel-denominated loans and 9 percent for dollar-denominated loans. And for microfinance institutions (MFIs) and deposit-taking institutions (MDIs), women could take loans that were fixed at an upper ceiling of 10 percent for riel-denominated loans and 11 percent for dollar-denominated loans.

He said women-led businesses were eligible for all types of loans, including term loans, overdrafts, trade financing facilities, etc. There was the option not just for new loans but also for refinancing old loans. CGCC said that it is currently guaranteeing both secured and unsecured loans. The maximum loan amount for working capital loans is $300,000
and the maximum amount for investment and business expansion plans is $500,000.

Credit to: Khmer Times, Publish on 16 August 2024

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

Posted on August 2, 2024August 2, 2024 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.

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

The Business Owner Who Received a Loan Guaranteed by CGCC

Posted on May 9, 2024June 14, 2024 by Sorn Chhorvyvatey

Agriculture is a key sector in supporting the national economic growth. Rice market also plays an important role in promoting agriculture. Chhun Thom Rice Mill was established in 1997, initially as a family business. After years of operation, customers know the brand and begin to trust our products. I have seen opportunities to expand this business, especially on technologies such as the purchase of additional rice mills and the expansion of the location of the mill.

I was introduced by ABA Bank staff about the loan guaranteed by CGCC which can provide me additional capital even without collateral. Thanks to the credit guarantee from CGCC, I was able to get more capital to expand my rice mill business.

I strongly believe that the CGCC’s credit guarantee really support my business, as well as other potential SMEs that lack collateral to get necessary capital from banks or microfinance institutions for their business expansion.

CGCC and Bridge Bank Signed on Credit Guarantee Agreement to Support Businesses in Access to Guaranteed Loans

Posted on February 7, 2024 by Sorn Chhorvyvatey

On 07 February 2024, Credit Guarantee Corporation of Cambodia (CGCC) and Bridge Bank officially announced the partnership in the signing ceremony on the Credit Guarantee Agreement to provide support to micro, small, and medium enterprises (MSMEs) and large enterprises, in easier access to bank’s loans with CGCC’s Guarantee for business development.

The partnership between CGCC, a state-owned enterprise, under the financial and technical guidance of the Ministry of Economy and Finance, and Bridge Bank, a commercial bank with a commitment to support the local MSMEs, will enable Bridge Bank to expand the opportunity to be confident in providing the loans to financially viable businesses but lack of collaterals, by using credit guarantees of CGCC.

Mr. Wong Keet Loong, Chief Executive Officer of CGCC said: “This partnership with Bridge Bank opens up a new channel for us to reach out to support the Bank’s SMEs in getting loans when they lack collateral. Our participating FIs will evaluate the eligibility of SMEs for guaranteed loans as they know the financial needs and repayment capability of the borrowers. Our guarantees are vital to ensure the continuous supply of credit into the market to support more economic activities.”

Mr. Richard Liew, CEO of Bridge Bank said: “SMEs are one of the backbones of Cambodia’s economy, contributing significantly to the country’s GDP growth as well as providing employment opportunities to all Cambodians. However, some of these businesses often face challenges in accessing financing to support their growth. That is where this partnership between Bridge Bank and CGCC comes in. Through this MoU, we hope to provide MSMEs with easier access to loans by leveraging CGCC’s expertise in credit guarantee services. This will help to mitigate the risk of default and enable us to offer more competitive loan rates, thus increasing the affordability of credit for MSMEs.”

Through this agreement, Bridge Bank has now become one of the 28 Participating Financial Institutions (PFIs) of CGCC, committing to assisting business entities in line with the Government’s direction to support MSMEs. CGCC and Bridge Bank strongly believe that this partnership will be one of the key instrumental in addressing the financing gap faced by many MSMEs and will contribute to the growth and development of the country’s economy.

About CGCC

CGCC is the only credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia. Visit CGCC’s website for more information: www.cgcc.com.kh

About Bridge Bank

Bridge Bank provides a comprehensive range of banking products, such as loan services including home, automotive, personal, and business loans, as well as deposit services, payroll and remittance services.

Bridge Bank’s vision and mission are “to be your preferred financial partner of today and generations to come,” and “to provide financial services you can trust through our global service standards, making banking simple and secure.”

Please visit us for more details via www.bridgebank.com.kh

Meeting Between CGCC ADB, and GGGI exploring the collaboration on Cambodian Green Sustainable Financing

Posted on December 6, 2023December 7, 2023 by Sorn Chhorvyvatey

On 06 December 2023, CGCC, led by Mr. Wong Keet Loong, CEO of CGCC, met with the Asian Development Bank (ADB), and the Global Green Growth Institute (GGGI) to discuss on GGGI’s Switch Garment Project to promote sustainable energy practices in the Garment Sector in Cambodia.

The meeting also aimed to explore collaboration opportunities between CGCC, ADB, and GGGI to implement the Sustainable Green Financing Facility (SGFF), a blended financing facility comprising of credit guarantee, and technical assistance elements, to support sustainable development goal (SDG).

CGCC Participated in the Women Entrepreneurs Day to share on Government’s Mechanism to support women entrepreneurs

Posted on November 14, 2023December 5, 2023 by Sorn Chhorvyvatey

On 11 November 2023, Mr. No Lida, Deputy CEO of CGCC, led CGCC team to participate in the Women Entrepreneurs Day organized by Cambodia Women Entrepreneurs Association under the topic “The Challenges of Taxation on Women Entrepreneurs and Future Outlook”. This meaningful event was attended by more than 150 participants from relevant institutions from the public and private sectors, as well as development partners.

CGCC Team to Participate in the Women Entrepreneurs Day Organized by Cambodia Women Entrepreneurs Association Under the Topic “The Challenges of Taxation on Women Entrepreneurs and Future Outlook”

During this event, Ms. San Sokrina, Manager of Product Development of CGCC, was a guest speaker in a panel discussion on “Government Support to Women Entrepreneurs Facing Global Economic Crisis”. During the panel discussion, Ms. San Sokrina shared CGCC’s Credit Guarantee Schemes, especially the Women Entrepreneurs Guarantee Scheme, which is specifically designed for women entrepreneurs’ access to finance to support their businesses, as well as key recommendations to women entrepreneurs on how to manage and gain access to business loans.

Dissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin Province

Posted on September 20, 2023October 16, 2023 by Sorn Chhorvyvatey

On 15^th September 2023, the Credit Guarantee Corporation of Cambodia (CGCC) and Cambodia Chamber of Commerce (CCC) co-organized a seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin province in collaboration with Pailin Chamber of Commerce with more than 80 participants from Management and staff of participating financial institutions (PFIs) and small and medium business owners in Pailin and other provinces. The seminar was also presided over by H.E. Oknha. Lor Sun Cheang, President of Pailin Chamber of Commerce, Mr. No Lida, Deputy CEO of CGCC, Mr. Hun Vatha, Vice President of Cambodia Agricultural Corporative Alliance (CACA), and the presentations by representatives from LOLC Microfinance Institution and ABA Bank as well.

Through this seminar, small and medium business owners are informed about the benefits of guaranteed loans through CGCC’s participating financial institutions in response to the lack of collateral when applying for a loan to expand and rehabilitate their businesses more.

Dissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin Province

CGCC visits PFIs provincial branches in Kampong Chnang, Pursat, Battambang & Pailin to Enhance Collaboration on the Credit Guarantee

Posted on September 19, 2023October 16, 2023 by Sorn Chhorvyvatey

From 11 September to 14 September 2023, CGCC team led by Mr. Hor Saopiseth, Manager of Centralized Operations of CGCC, visited provincial branches of selected participating financial institutions (PFIs) to discuss with the management and staff of the selected PFIs the implementation of CGCC’s credit guarantee schemes. The selected PFIs in 4 provinces including:

– Kampong Chnang province: ABA Bank and Chamroeun Microfinance

– Pursat province: Prince Bank, Canadia Bank and Chamroeun Microfinance.

– Battambang Province: Prince Bank, FTB Bank, and Maybank

– Pailin Province: LOLC Microfinance, Phillip Bank and ABA Bank.

The discussions with CGCC PFIs’ provincial branches in these 4 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.

CGCC visits PFIs provincial branches in Kampong Chnang, Pursat, Battambang & Pailin to Enhance Collaboration on the Credit Guarantee

CGCC Participated in the 35th Asian Credit Supplementation Institution Confederation (ACSIC) Conference in Mongolia

Posted on August 21, 2023October 19, 2023 by Sorn Chhorvyvatey

On 7 to 11 August 2023, CGCC Delegation, led by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance (MEF), and Chairman of CGCC, attended the 35^th ACSIC Conference in Ulaanbaatar, Mongolia, hosted by Credit Guarantee Fund of Mongolia (CGFM), under the theme “Looking ahead: fostering green financing for sustainable development”.

CGCC Participated in the 35th Asian Credit Supplementation Institution Confederation (ACSIC) Conference in Mongolia

During the conference, H.E. Chairman of CGCC gave a warm greeting remark to all the participants on credit guarantee mechanism, as a supplement to the sustainable financial state in Cambodia.

Moreover, Mr. KL Wong, CEO of CGCC, was also invited as a speaker to the panel discussion on “Design, Implementation and Monitoring: The Role of Credit Guarantee Schemes in Addressing the Perceived Higher Risks Associated with Green Finance Investments”. In this panel discussion, Mr. KL Wong shared the progress of CGCC in developing a guarantee scheme to support green financing for sustainable development by collaborating with various government ministries and development agencies in supporting the country’s commitment to participate in reducing GHG emissions by about

Through this conference, delegates from members/observers also got the chance to share and exchange their respective views on respective topics around green financing for sustainable development through expert insight discussions, plenary discussions, fireside chats, panel discussions, and keynotes, in which to bring the solidarity effort toward building and developing the green financing, a key driver of positive change, as it’s not just relevant but vital in the face of current environmental challenges.

The 35^th ACSIC conference was participated by approximately 120 delegates representing members/observers of ACSIC from 13 countries in Asia including Cambodia, Indonesia, India, Japan, Korea, Malaysia, Mongolia, Nepal, Papua New Guinea, Philippines, Sri Lanka, Taiwan, and Thailand.

ACSIC is the cooperation of largest Asia’s credit guarantee organization established in 1987, designed to improve the credit guarantee system, which currently is participated by 19 credit institutions of 13 Asian countries.

Signing Ceremony on Portfolio Guarantee Scheme Between CGCC and Canadia Bank

Posted on July 18, 2023July 18, 2023 by Sorn Chhorvyvatey

On July 17, 2023, the Credit Guarantee Corporation of Cambodia (CGCC) and Canadia Bank, one of the leading commercial banks in Cambodia, signed an agreement on Portfolio Guarantee Scheme to provide guaranteed loans to micro, small and medium enterprises for retail and wholesale businesses in the country.

Signing Ceremony on Portfolio Guarantee Scheme Between CGCC and Canadia Bank

The agreement between CGCC and Canadia Bank on Portfolio Guarantee Scheme aims to support business including Micro, Small and Medium Enterprises (SMEs) to enhance their quick access without CGCC evaluates on guarantee application from the Participating Financial Institution (PFI) to formal loans even without collateral or insufficient collateral pledges for both working capital and investment or business expansion. By leveraging their respective expertise, both institutions are committed to facilitating the growth and development of SMEs, which are vital contributors to Cambodia’s economy.

In 2021, Canadia Bank was one of the first banks to participate in the Business Recovery Guarantee Scheme (BRGS) led by CGCC under Cambodia’s government initiative to support the recovery of SMEs in various sectors during and post-pandemic. The Bank has been awarded by CGCC as one of the Top Performing Financial Institutions in Cambodia with the highest guaranteed loans disbursed with CGCC for 2022.

With its strong presence in the Cambodian financial sector, the agreement signed between CGCC and Canadia Bank will further enhance their credit cooperation which, in turn, will provide a positive impact to the SME ecosystem as well empower entrepreneurs by providing sustainable financial options for their business growth and expansion.

Mr. Raymond Sia, CEO and Board Director of Canadia Bank, expressed his enthusiasm about the partnership, stating, “We are thrilled to collaborate with CGCC to further our commitment to supporting the growth of SMEs in Cambodia. With this agreement, Canadia Bank hopes that SMEs business owners will have more sustainable financial access to enhance their business capability and efficiency for more sustained operations.”

Mr. Wong Keet Loong, CEO of Credit Guarantee Corporation of Cambodia, also excited of the cooperation. He said “This Portfolio Guarantee Scheme (PGS) is targeted specifically for businesses under the Retail and Wholesale Trade sector. It is designed to enhance lending to enable MSMEs in this sector to grow their business. The PGS reinforces both CGCC and Canadia Bank’s commitment to support the growth of MSMEs, which are vital contributors to Cambodia’s economy and employment opportunities.”

“Canadia Bank has been the top provider of guaranteed loans and this partnership will further solidify the Bank’s position as a trusted and reliable source of financing for businesses in this sector. This joint effort will further cement our commitment to improve financial inclusion and sustainable growth of MSMEs,” he added.

About Canadia Bank

Canadia Bank is a leading local and full-service commercial bank in Cambodia since 1991 and one of the largest commercial banks that holds commanding market shares in loans and deposits. In 2023, Canadia Bank was awarded “Best Retail Bank” by The Asian Banker and “The Best SME Bank” by the Digital Banker. The Bank has been recognized and awarded by The Asian Banker as “The Strongest Bank by Balance Sheet in Cambodia in 2019,” the “Best Managed Bank in 2022”, and “The Best Retail Bank” for 3 consecutive awarding years in 2020, 2021, and 2023.

As of April 2023, Canadia Bank has 68 branches and more than 400 self-service digital devices across Cambodia, such as ATMs, Cash Recycling Machines, Virtual Teller Machines, and Smart Card-Issuing Machines. For more information, please visit our website, www.canadiabank.com.kh.