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CGCC visits PFIs provincial branches in kampong Speu, Preah Sihanouk, and Kampot, to Enhance Collaboration on the Credit Guarantee

Posted on by Sorn Chhorvyvatey

From 29 August to 02 September 2022, CGCC team led by Mr. No Lida, Deputy CEO 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 3 provinces including Kampong Speu province: Canadia Bank and AMK Microfinance Institution; Preah Sihanouk province: ABA Bank, LOLC Microfinance Institution, Sathapana Bank, Canadia Bank, AMK, and Acleda; and Kampot Province: ABA Bank, Acleda Bank, AMK, and LOLC.

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, especially where the provinces are the potentials in tourism sector, CGCC got the chance to bring awareness of the newly launched scheme, Co-Financing Guarantee Scheme for Tourism Sector, to enhance the support for businesses in tourism sector in getting guaranteed loans from CGCC’s PFIs.

Through these face-to-face discussions with more than hundreds of PFIs’ provincial managements and staffs, CGCC had such 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.

Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”

Posted on by Sorn Chhorvyvatey

On 01 September 2022, Ministry of Economy and Finance and CGCC organized a Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector” in Kampot Province, in collaboration with the Ministry of Tourism, through the provincial department of tourism, and SME bank, which was  participated by more than 50 business owners in the tourism sector.

This seminar was presided by Mrs. Chin Sopheakla, Deputy Director of Kampot Provincial Department of Tourism, Mr. No Lida, Deputy CEO of CGCC, and Mr. Neav Sokun, Chief Operation Officer of SME Bank.

Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”

Through this workshop, SMEs in the tourism sector, including resorts, hotels, guesthouses, restaurants, etc., were informed about the benefits of getting guaranteed loans, in response to the lack of collateral when applying for loans for the purpose of improving and recovering their business that are impacted by COVID-19 pandemic.

SMEs also learned about government’s financial supporting mechanisms on favorable loans conditions such as low-interest rate through SME Bank and guaranteed without collateral by CGCC.SMEs can request for guaranteed loans for their tourism related businesses through CGCC’s “Co-Financing Guarantee Scheme for Tourism Sector” that act as collaterals for business loans in the tourism sector through “Tourism Recovery Co-financing Scheme” of SME Bank.

Detail of “Co-Financing Guarantee Scheme for Tourism Sector”: https://cgcc.com.kh/en/co-financing-guarantee-scheme-for-tourism/

Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector” organized by CGCC on 1 September 2022 in Kampot Province
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector” organized by CGCC on 1 September 2022 in Kampot Province
Dissemination Seminar on “Guaranteed Loans to support SMEs Development in Tourism Sector”

CGCC participates in the discussion on “SMEs and FinTech Joining Hands to Promote Economic Recovery”

Posted on by Sorn Chhorvyvatey

On 03 May 2022, Mr. No Lida, Deputy Chief Executive Officer of Credit Guarantee Corporation of Cambodia (CGCC), participated as a speaker in the panel discussion on “SMEs and FinTech Joining Hands to Promote Economic Recovery”, organized during the MoU signing ceremony between Cambodia Asia Bank (CAB) and SME Bank of Cambodia on SMEs Co-Financing Scheme Phase II.  

The panelists in the discussion included the Chief Operation Officer of CAB, Head of Credit of SME Bank of Cambodia, and Chief Executive Officer of Bankograph.  

SMEs and FinTech Joining Hands to Promote Economic Recovery

Mr. No Lida shared the importance of narrowing the financing gap between demand and supply for the economic development and CGCC’s mission of providing credit guarantees to banks/MFIs on loans made to businesses to share the risk with lenders and to improve financial inclusion. In addition, he also provided some recommendations to businesses in order to gain access to guaranteed loans.   

In September 2021, CGCC launched the Co-financing Guarantee Scheme (CFGS), which is specifically designed for the loans disbursed under the SMEs Co-Financing Scheme Phase II of the SME Bank of Cambodia. CFGS helps the PFIs to disburse more unsecured loans to SMEs.  

SMEs and FinTech Joining Hands to Promote Economic Recovery

SMEs and FinTech Joining Hands to Promote Economic Recovery

Know about: CGCC and Access to Finance for Women Entrepreneurs

Press Release: $50 million Co-Financing Guarantee Scheme launched by Credit Guarantee Corporation of Cambodia to Support SMEs

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC) is pleased to announce the launch of the Co-Financing Guarantee Scheme (CFGS). CFGS is specifically designed for the co-financing loans disbursed under the SMEs Co-Financing Scheme Phase II (SCFS II) of the SME Bank of Cambodia. CFGS and SCFS II are the joint efforts of the two state-owned enterprises to improve access to finance for SMEs. While SCFS II aims to lower SMEs’ cost of borrowing, CFGS is a guarantee scheme that will act as collateral/security for 70%-80% of the loan amount; thus, reducing the physical collateral required from the borrowers.

CGCC will launch the 1st tranche of the CFGS amounting to $50 million to guarantee loans under the SCFS II.  This scheme will support the growth of new loans in the banking sector to enable business owners to borrow from the Participating Financial Institutions (PFIs) of CGCC.  PFIs will be able to offer higher loan amounts and the risk exposure will be shared with CGCC up to 80%.

The Co-Financing Guarantee Scheme (CFGS) is the second credit guarantee scheme offered by the CGCC. CGCC launched the USD 200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support the economic recovery during the COVID-19 pandemic. As of 21st September, CGCC has assisted 85 businesses including SMEs by providing credit guarantees for their loan applications from the PFIs amounting to USD 12 million.

H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors states that “the launch of the CFGS by CGCC is timely to provide additional support to the SCFS II of the SME Bank of Cambodia for risk-sharing with the PFIs. The two facilities will complement each other to address two key issues faced by the SMEs in access to finance: (1) high cost of borrowing and (2) collateral issues.”

Cambodian-owned SMEs (>50% ownership) may approach the PFIs of CGCC or contact CGCC through 023 722 123 or [email protected] or go to www.cgcc.com.kh for more information. CGCC’s PFIs includes (in alphabetical order) ABA Bank, Acleda Bank, AMK MFI, Amret MFI, Asia Pacific Development Bank, BRED Bank, Cambodia Post Bank, CAMMA MFI, Canadia Bank, Chamroeun MFI, Foreign Trade Bank of Cambodia, J Trust Royal Bank, LOLC MFI, Phillip Bank, PPCBank, Prince Bank, RHB Bank, Sathapana Bank, and Wing Bank. CGCC looks forward to working closely with all stakeholders to support the growth of SMEs with the CFGS.