SME Archives - Page 9 of 15

Maybank and CGCC Organise Capacity Building and Capability Workshops for Around 100 SMEs in Cambodia

Posted on November 21, 2022May 30, 2023 by Sorn Chhorvyvatey

Maybank Cambodia in collaboration with the Credit Guarantee Corporation Cambodia (CGCC) organised two workshops held over the last two months in efforts to strengthen the capacity and capabilities of around 100 SMEs and financial advisors by providing business insights and knowledge as well as new skills, techniques and technologies to improve their business operations.

The SME Building Capacity & Capability workshops, which were held at the Maybank Tower, provided a platform for networking, giving SMEs in attendance opportunities to connect with like-minded peers across industries to develop new insights into building and strengthening their business.

Maybank and CGCC Organise Capacity Building and Capability Workshops for Around 100 SMEs in Cambodia

Mr. Rath Sophoan, CEO of Maybank Cambodia said that the Bank understands that SMEs are confronted with increasing difficulties and challenges post pandemic and have limited access to timely and accurate information as well as the necessary skills to meet the rapidly evolving market to remain competitive and resilient.

“As such, we have introduced a comprehensive programme to help SMEs, which is a strategic and collective initiative that the Bank commits, in addition to the continuous efforts to support them gain access to financial assistance. In line with our mission to Humanise Financial Services and upon the success of our workshops, we plan to organise several more in the future as we see this being beneficial not only to the SMEs but also towards boosting the economy as SMEs are the backbone of the country,” he added.

All entrepreneurs were exposed to various topics including business registration in Cambodia, the importance of financial discipline, branding and digital marketing, as well as the aspects of managing human resources, presented by subject-matter-experts and professionals by law firms, business consultants, advertising agencies and financial institutions.

Mr. Wong Keet Loong, Chief Executive Officer of CGCC, said, “Our partnership with Maybank has enabled both parties to help improve financial literacy to build SMEs’ business operations and provide upskilling and growth opportunities to all the participants. These workshops aim to serve as a platform to fuel the SME growth further in Cambodia.”

He further added that Maybank and CGCC will continue to support local SMEs through various means, including financing facilities, business support instruments and technical advisory based on best practices to support SME growth, productivity and innovation, as well as enhance the competitiveness of SMEs.

Give Non-Collateral a chance! Credit Guarantee Mechanisms and Benefits for Banks, MFIs and Businesses

Posted on November 18, 2022May 31, 2023 by Sorn Chhorvyvatey

Download the Full article in PDF: Give Non-Collateral a chance!

Lack of collateral is the main challenge for businesses in Cambodia to get loans. The Royal Government of Cambodia established the Credit Guarantee Corporation of Cambodia (CGCC) to address this challenge. With credit guarantees, borrowing without collateral is no longer impossible. For CGCC to yield the benefits requires a good understanding from relevant stakeholders about how it works.

Simply put, CGCC provides credit guarantees to share the credit risk with the banks on loans made to businesses. In other words, the banks can claim from CGCC if the guaranteed loan defaults. There are two main types of credit guarantee – individual guarantee whereby the guarantee covers individual loans and portfolio guarantee whereby the guarantee covers a portfolio consisting of multiple loans. Since CGCC itself is not a lending institution, it currently collaborates with banks and micro-finance institutions (MFIs) that are the participating financial institutions (PFIs) to provide guaranteed loans to businesses. As a government-backed institution with adequate capital in its account, CGCC is set to provide a wide range of guarantees on loans disbursed to Cambodian-owned businesses across the country.

Why should the lender need the credit guarantee?

Give Non-Collateral a chance! Credit Guarantee Mechanisms and Benefits for Banks, MFIs and Businesses

When lending, banks normally protect themselves by requiring collateral from the borrowers. When the borrower cannot repay the loan, the banks liquidate the collaterals to cover the loss. If the required collateral is not sufficient, the bank is unlikely to lend. The collateral requirement becomes more stringent, especially during times of uncertainty such as the COVID-19 Pandemic, because businesses are perceived to be riskier, and banks become more risk-averse. Now with CGCC, the banks can protect themselves with the credit guarantee instead of the collaterals. Currently, CGCC provides credit guarantees up to 80% of the outstanding loan principal which means that the bank bears the remaining 20% of the loss if the loan defaults. The credit guarantee empowers banks to remain competitive in the market and to lend out more to underserved borrowers who lack collaterals, what is referred to as “credit additionality.”

Why should the borrower need the credit guarantee?

Credit guarantees increase the borrowing capacity. CGCC provides guarantees that act as collateral on the borrower’s behalf. Needless to say, CGCC cannot be beneficial for every business. By all means, if the business has sufficient collateral and the ability to repay the loan, the chance is that such a business does not need a credit guarantee, and the bank would also be happy to lend even without CGCC’s guarantee. However, it is common that a potential business with the ability to repay the loan is unable to borrow because of insufficient collateral. Businesses simply cannot pledge the collateral on every loan they wish to borrow. The collateral is limited. This is a huge loss to the business and the economy as a whole. With the required loan, the business could have generated more income, employed more workers, and produced goods or services that contribute to the economic growth of the country. When CGCC provides guarantees to the banks, the borrowers now have easier access to loans from the banks because the banks are willing to lend more with less collateral requirement.

Credit guarantees are used by many countries as a policy tool to improve access to finance and financial inclusion. However, never before has a credit guarantee corporation been incorporated in Cambodia. According to the World Bank, “Public credit guarantee schemes (CGSs) are a common form of government intervention to unlock finance for small and medium enterprises (SMEs). More than half of all countries in the world have a CGS for SMEs and the number is growing.” While many credit guarantee schemes have proved successful in supporting the SMEs, many have also failed.

It is still early to assess how far and how fast CGCC can support the businesses. CGCC must continue to strengthen credibility, efficiency, and transparency and adhere to the best practices including the World Bank’s principles for public credit guarantee schemes for SMEs to gain trust and support from all relevant stakeholders. What is also important at this stage is that all the players understand and start to utilize the credit guarantees for the right purposes.

“CGCC and Korea Credit Guarantee Fund Signed a MOU to Enhance the Development of Credit Guarantee and Financial Support for Asian’s SMEs”

Posted on November 14, 2022May 31, 2023 by Sorn Chhorvyvatey

On 09 November 2022 in Daegu, Republic of Korea, with the approval of H.E. Akka Pundit Sopheacha Deputy Prime Minister, Minister of Economy and Finance Guarantee Corporation Cambodia (CGCC) and Korea Credit Guarantee Fund (KODIT) signed a Memorandum of Understanding (MoU) agreeing on a collaboration to support the development of credit guarantee system for the growth of small and medium enterprises (SMEs) of the Kingdom of Cambodia and the Republic of Korea.

The MoU was signed by Mr. Wong Keet Loong, Chief Executive Officer of CGCC, and Mr. Choi Won Mok, Chairman and CEO of KODIT, and witnessed by H.E. Dr. Mey Vann, Secretary of State of the Ministry of Economy and Finance and Chairman of the Board’s Risk Management Committee of CGCC.

The MoU will enable CGCC and KODIT to collaborate on the exchange of information, policy consultation, and assistance with regard to credit guarantee services.

“CGCC and Korea Credit Guarantee Fund Signed a MOU to Enhance the Development of Credit Guarantee and Financial Support for Asian's SMEs” — “CGCC and Korea Credit Guarantee Fund Signed a MOU to Enhance the Development of Credit Guarantee and Financial Support for Asian’s SMEs”

You might be to know more about: CGCC and CGC (Malaysia) signed a MOU to collaborate on credit guarantee development

“CGCC raising awareness on credit guarantee at FinTech Stage of Cambodia Tech Expo 2022”

Posted on November 14, 2022May 31, 2023 by Sorn Chhorvyvatey

CGCC was pleased to co-sponsor the FinTech Stage of Cambodia Tech Expo 2022 and would like to congratulate the success of this EXPO which was held on 11-13 November 2022 at The Koh Pich Convention and Exhibition Center, with the participation of many national and international guests. “Cambodia Tech Expo 2022” is the first and largest Tech Expo in Cambodia which was held as an official sideline event of the ASEAN 40^th and 41^st Summit hosted by Cambodia.

The “FinTech Stage” was co-organized by Ministry of Economy and Finance (MEF), Digital Economy and Business Committee (DEBC), Techo Startup Center (TSC), and Cambodian Association of Finance & Technology (CAFT) under 3 major topics: (1) FinTech Development, (2) Banking and Non-Banking, (3) Cyber Security and DeFi.

“CGCC raising awareness on credit guarantee at FinTech Stage of Cambodia Tech Expo 2022”

During this event, CGCC displayed CGCC’s guarantee schemes to raise awareness of the financing support policy, particularly the credit guarantees on business loans that lack collateral, an initiative of the Royal Government of Cambodia to support the development of SMEs.

Click here to read more about: CGCC participates in the discussion on “SMEs and FinTech Joining Hands to Promote Economic Recovery”

Annual Microfinance Conference 2022 on “Strengthening Responsible Growth in the context of the Post COVID-19 Economic Recovery”

Posted on November 1, 2022May 31, 2023 by Sorn Chhorvyvatey

On 28 October 2022, CGCC has the honor to join the CMA’s Annual Conference on “Strengthening Responsible Growth in the context of post-COVID-19 Economic Recovery’’ at Sokha Hotel, Siem Reap Resort & Convention Center, presided over by H.E. Rath Sovannorak, Assistant Governor and Director of Banking Supervision of National Bank of Cambodia (NBC) and H.E. Dr. Huot Pum, Under the Secretary of State of the Ministry of Economic and Finance (MEF) along with the presence of other MFIs in Cambodia.

Through this conference, Mr. No Lida, DCEO of CGCC, also attended as a panelist in the panel discussion on “Best practices and lesson learned on supporting MSME”. He had raised about CGCC’s credit guarantee experience to support MSMEs, and the benefits of using formal loans, in response to the lack of collateral when applying for loans with CGCC’s PFIs under CGCC’s guarantee schemes to improve and recover their business impacted by the COVID-19 pandemic.

Click here to read more about: CGCC & Key Reflection of Covid-19 response and future perspective to accelerate the economic recovery

CGCC and CGC (Malaysia) signed a MOU to collaborate on credit guarantee development

Posted on October 24, 2022June 22, 2023 by Sorn Chhorvyvatey

On 21 October 2022 in Kuala Lumpur, Malaysia, Credit Guarantee Corporation Cambodia (CGCC) and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a Memorandum of Understanding (MoU) agreeing on a collaboration to enhance the development of credit guarantee services and the growth of MSME in Malaysia and the Kingdom of Cambodia.

CGCC) and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a Memorandum of Understanding (MoU) agreeing on a collaboration to enhance the development of credit guarantee services

The MoU was signed by Mr. Wong Keet Loong, Chief Executive Officer of CGCC, and Datuk Mohd Zamree Mohd Ishak, President/Chief Executive Officer of CGC, and witnessed by H.E. Dr. Mey Vann, Secretary of State of the Ministry of Economy and Finance and Chairman of the Board’s Risk Management Committee of CGCC, and Mr. Anthony Lim Choon Eng, Independent Non-Executive Director and Chairman of Board Risk Management Committee of CGC.

The MoU will enable CGCC and CGC to collaborate on the exchange of information, policy consultation, and assistance with regard to credit guarantee services.

You might be know more about: “CGCC and Korea Credit Guarantee Fund Signed a MOU to Enhance the Development of Credit Guarantee and Financial Support for Asian’s SMEs”

CGCC’s study visit to Malaysia to explore more understanding on related institutions of credit guarantee in Malaysia

Posted on October 24, 2022June 1, 2023 by Sorn Chhorvyvatey

On 20 and 21 October 2022, CGCC delegates led by H.E. Dr. Mey Vann Secretary of State of Ministry of Economy and Finance (MEF), and Chairman of Board of Risk Committee of CGCC, Datuk Michael Lor, Advisory of MEF, Mr. Wong Keet Loong, CGCC’s CEO, and along with CGCC’s management team, conducted a study visit to Malaysia to explore more understanding on related topics of credit guarantee from three institutions such as and the Credit Guarantee Corporation of Malaysia Berhad (CGC), Danajamin Nasional Berhad, Bank of Negara Malaysia.

CGCC’s study visit to Malaysia to explore more understanding on related institutions of credit guarantee in Malaysia

This is the first abroad study visit of CGCC’s delegates after the 2 years operation, that is such a great opportunity for CGCC’s delegates to learn more about strategy and implementation in the credit guarantee context to strengthen the business development and operation, also, CGCC got the opportunity to exchange information sharing on the credit guarantee of Cambodia in the ASEAN context level.

I’m Financially Literate Program receives success after the launch of the 1st cohort to Help Business Owner and especially Women in Business Become Financially Literate and Financial Inclusive

Posted on October 14, 2022June 1, 2023 by Sorn Chhorvyvatey

Sathapana Bank, a leading commercial bank in Cambodia, successfully launched the first cohort of I’m financially Literate (IFL) in partnership with Khmer Enterprise, Manulife Cambodia, and Credit Guarantee Corporation of Cambodia (CGCC) to provide non-financial services to SMEs and MSMEs and especially women in business.

The success of the first cohort is acknowledged by the business owners who attended the class. Business owners gained a new understanding of their business model, cash flow management and the use of capital and debt.

“Throughout the 4-day course over two weekends, there were crucial lessons related to financial management especially on how to read the financial report and financial analysis. I, now, learnt that there are 4 ways to read the financial report,” said Mrs. Kheng Khattavy, Founder and Managing Director of Eternity Title Co., Ltd.

The success of the program is due to the course material designed to solve the pain-points of business owners including a lack of business and financial literacy skills, the lack of confidence or reluctance to apply for loans, improper cash flow management and credit score building. This course is delivered with in-depth knowledge, practical example and case studies lectured by two certified financial literacy and business management trainers in local language.

”Business owner is likely to prioritize the profit gain. Over the times, they ignore the discipline of following the business plan or proper financial planning which leads to unhealthy cashflow management, known as the business pulse. What I have learnt today is practically important and way beyond my self-research study,” said Sopheap, Managing Director and Founder of Akphiwatt Rental Solutions.

H.E. Dr. Chhieng Vanmunin, Chief Executive Officer of Khmer Enterprise mentioned that Khmer Enterprise serves as a national platform to support more Cambodian start-ups and SMEs to grow and scale. All programs are tailored to fit all stages of business from ideation to investment through entrepreneurial promotion, capacity upgrading, networking to seed funding. The collaboration with Sathapana bank on the IFL program will bring our mission closer by fulfilling the financial gap that best prepares Cambodian entrepreneurs for the next stage of business scaling and investment opportunities.

“Sathapana Bank fully supports IFL program which offers tremendous benefits, networking opportunity and in-depth financial knowledge to business owners. We believe that this training course is a good asset for women entrepreneurs to improve, grow and sustain their businesses with enhanced financial skill,” says Mr. Fung Kai Jin, Chief Executive Officer of Sathapana Bank.

Financial literacy allows business owners to make effective decisions with their investments, better manage their resources, and achieve their business goals. Therefore, Manulife is proud to support this program with our strategic partner Sathapana Bank, knowing this initiative will provide financial education to support the development of women entrepreneurs. This also aligns very well with our mission to build a better future for Cambodia. says Mr. Justin Helferich, CEO and General Manager, Manulife Cambodia.

“CGCC strongly supports women entrepreneurs for financial literacy to achieve financial inclusion. We believe that this training program can support women-owned SMEs on all levels of the business spectrum to be financially literate to improve and grow their businesses. This joint effort with Sathapana Bank, which is one of our most active partners in providing guaranteed loans to women-owned SMEs, and the other two sponsors, will provide more opportunities and support towards this segment of SMEs,” says Mr. Wong Keet Loong, Chief Executive Officer of CGCC.

The training course does not only provide practical business training and development but also networking opportunities to help Women in Business (WIB), SMEs and MSMEs better connected for future collaboration. For example, one SME owner who runs a cake shop has already been linked with the Coffee Shop owner during the training course.

Mrs. Gechhoung, Fy Long Electronic Store Owner and Sathapana Bank customer claimed that “If we do not have any fundamental financial knowledge, we just manage our business with no direction. Secondly, I also got to build good connections with many business owners though networking.”

The program is open from September 2022 to January 2023. All business owners are encouraged to register through this link: https://forms.office.com/r/dNausSrKxK or scan here.

Credit to: Khmer Times, Published on 14 October 2022

CGCC Sharing the Credit Guarantee Schemes at the Dissemination of New Measures and Legal Framework and Measures of the Ministry of Tourism

Posted on September 30, 2022June 2, 2023 by Sorn Chhorvyvatey

On Friday, September 30, 2022, Mr. No Lida, Deputy Chief Executive Officer of CGCC, participated as a speaker and shared about the Credit Guarantee Schemes at the Seminar on “Applying for Tourism Licenses via CamDx and Dissemination of New Measures and Legal Framework of the Ministry of Tourism” in Siem Reap Province, presided over by H.E. Song Tong Hap, Secretary of State of the Ministry of Tourism, with the participation of officials from Ministry of Tourism, and representatives from associations of tourism and travel agents.

CGCC Sharing the Credit Guarantee Schemes at the Dissemination of New Measures and Legal Framework and Measures of the Ministry of Tourism

At the seminar, CGCC’s DCEO highlighted the role of credit guarantee as an additional supporting mechanism initiated by the Royal Government of Cambodia to facilitate access to finance for companies/businesses that lack of collateral when applying for loans to banks/microfinance institutions. At the same time, in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during and after the COVID-19 pandemic, CGCC also launched a Co-Financing Guarantee Scheme for Tourism (CFGS-TR) to support the recovery of businesses in the tourism sector affected by the COVID-19.

He also strongly encouraged the Association of Tourism and Travel Agents and participants in this workshop to spread the information about the credit guarantee schemes, especially CFGS-TR, which is specially designed with favorable conditions to address the challenges of business owners in the tourism sector.

You might be to know more about: Give a Day: Credit Guarantee Schemes & Its role in Enterprise Development

CGCC and DGB Bank signed the partnership of credit guarantee agreement to provide more support for business loans that lack of collateral

Posted on September 23, 2022June 2, 2023 by Sorn Chhorvyvatey

(Phnom Penh, 22 September 2022): Credit Guarantee Corporation of Cambodia (CGCC) and DGB Bank has entered into a partnership on a credit guarantee agreement to expand support for businesses in all levels, ranging from micro to large firms in Cambodia that lack collateral in accessing to formal loans for their businesses with CGCC’s guarantees.

CGCC and DGB Bank signed the partnership of credit guarantee agreement to provide more support for business loans that lack of collateral

As a state-owned enterprise, operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF), CGCC has launched credit guarantee schemes to enhance easier access to finance despite collateral challenges and provide the most support to SMEs, aligning with government strategy in SMEs development. Under this partnership agreement, DGB Bank becomes one of the 24 CGCC’s Participated Financial Institutions (PFIs) in providing guaranteed loans to businesses, especially SMEs that lack collateral for their working capital and business expansion.

Chief Executive Officer of CGCC, Mr. Wong Keet Loong mentioned that “The volume of guaranteed loans over the last 6 months has been increasing. This indicates that the credit guarantee has supported SMEs in obtaining loans to grow their business. Our participating FIs are able to share the risks of the loans with CGCC.”

Mr. Wong added that “The collaboration with DGB Bank further reinforces our outreach to support more SMEs throughout the DGB branch network. We are glad that DGB finds the benefits of the credit guarantee to support their loan growth and risk weight.”

Chief Executive Officer of DGB Bank, Mr. Oul Dethsokhom said that “DGB bank is very excited of being able to sign the credit guarantee agreement with CGCC. With credit guarantee, the bank can take part in supporting businesses growth in the country and Cambodia’s economy in the ASEAN region”.

Mr. Oul Dethsokhom continued that “We were poised to enter into another government-led credit guarantee scheme dedicated to supporting SME business which could not procure funding source its own collaterals/guarantee.”

This joint force between CGCC and DGB Bank will enable businesses, especially SMEs, to have greater access to loans for their business growth by increasing borrowing capacity with the risk-sharing of credit guarantee schemes. It allows SMEs to borrow even without collateral and to get a higher loan amount with the same collateral value than they would otherwise get without a credit guarantee.

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 31 August 2022, CGCC has supported 661 businesses by providing credit guarantees for their loan applications, amounting to USD 64.8 million equivalent. CGCC has provided the most guarantee to SMEs, which accounts for 95% of the total businesses receiving the credit guarantee from CGCC.

About DGB Bank

DGB was “inaugurated as commercial bank” on September 01, 2021, with esteemed virtual participation from CEO of Daegu Bank and top management of the Bank. Throughout the year, the Bank unveiled four flagship products: deposits (CASA), remittance (domestic & Oversea), DGB Mobile app and ATMs services.

The Bank has, in line with the NBC’s Prakas, lent hands to the clients by undertaking the plight of loan restructures, easing their grim burden during financial predicament.

Tag: SME