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14th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

Posted on by Sorn Chhorvyvatey

On 29 June 2023 at 2:00pm, CGCC organized the 14th Board of Directors Meeting at Rosewood Hotel under the chairmanship of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors, with the presence of members of the Board of Directors and the state controller.

14th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)
14th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

The agendas of this 14th Board of Directors Meeting included: (1) CGCC Progress Report, (2) Internal Audit Report on Centralized Operations, (3) PGS with Canadia Bank Plc., Sathapana Bank Plc., and Prince Bank Plc., (4) Establishment of Investment Committee, (5) Whistle Blowing Policy, and (6) Others.

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 the transparency and efficiency of CGCC.

Meet the Pig Farm Business Owner Who Received a Credit Guarantee from CGCC to Support His Business

Posted on by Sorn Chhorvyvatey

Read and Download in PDF: Mr. Sok Nalen, owner of a pig farm using a large-scale biogas plant Kampong Chhnang province

In 2014, I started this pig farm business. Initially, this farm was a farm raising piglets, but in 2019 this it was transformed into a bigger farm supplying meat.

When starting this business, I faced two main challenges: technical and financial challenges. Technology changes rapidly from one year to another requiring businesses to have enough capital to keep up with it. Based on the technical standard, my farm must have a biogas plant to protect the surrounding environment by reducing emission of toxic fumes and odors. The biogas plant can also recycle waste and other residuals. Fortunately,​​ Biogas Technology and Information Center (BTIC) provided technical support to me to restore and set up a biogas plant for my farm. However, I need more capital. With the cooperation with CGCC, BTIC introduced me to a way to access non-collateralized loans with credit guarantees. With CGCC’s guarantee, I could get a business loan from Canadia Bank as requested on time without collateral. The guaranteed loan served as my working capital, which allowed me to continue building a new biogas plant to support my pig farm.

Obtaining guaranteed loans depends on the potential of my business, namely the possibility of growth, a good credit history, and the required documents that prove the need for the loan for my business. Other business owners who require additional capital, but no collateral can also seek for credit guarantee from CGCC through CGCC’s PFIs.

Understanding CGCC Portfolio Guarantee Scheme

Posted on by Sorn Chhorvyvatey

It has been two years since CGCC launched Cambodia’s first-ever public credit guarantee scheme on 29 March 2021 – the Business Recovery Guarantee Scheme (BRGS) – when Cambodia was at the peak of the COVID-19 Pandemic. Shortly after the launch, Cambodia experienced a 3-week lockdown on 8 April 2021. In that situation, the credit guarantee was more needed than ever when potential businesses struggled to access the required capital to stand on their feet. Two more schemes were then introduced: Co-financing Guarantee Scheme (CFGS) and the Women Entrepreneurs Guarantee Scheme (WEGS) to support businesses. The BRGS, CFGS, and WEGS are regarded as the Individual Guarantee Scheme (IGS), which means the PFI shall seek guarantee approval from CGCC on a piecemeal basis before each guaranteed loan disbursement.

On 1 January 2023, CGCC hit a new milestone by introducing the Portfolio Guarantee Scheme (PGS) after approval was granted by the Deputy Prime Minister, Minister of Economy and Finance. PGS is a scheme under which guaranteed loan criteria are pre-agreed by CGCC and PFI to enable the PFI to enroll multiple loans in PGS without having to get CGCC’s guarantee approval on each loan prior to loan disbursement. As such, PGS enables quicker outreach and turnaround time than the previous Individual Guarantee Schemes (IGS).

Read More: Understanding CGCC Portfolio Guarantee Scheme

CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”

Posted on by Sorn Chhorvyvatey

On 17 September 2022, CGCC and Maybank Cambodia co-organized the “SME Building Capacity and Capability (BCC) Programme” at Maybank Tower, participated by more than 50 SME entrepreneurs to provide business support instruments and technical advisory based on international best practices to support SME growth, productivity and innovation, as well as enhance competitiveness for SMEs.

Mr. No Lida, Deputy CEO of CGCC, remarks on the importance of this program for SMEs beyond the cooperation between CGCC and Maybank Cambodia, and Mr. Duk Sarak, Head of Community Financial Services of Maybank Cambodia, relayed the opening remark for the event. SME participants had the opportunity to learn about the topic of “Business Registration in Cambodia” from SokSiphana & Associates, “The Importance of Financial Discipline for SMEs” from Acclime Cambodia, “Access to Finance and Guarantee Scheme” from Maybank Cambodia.

CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”

Upon the collaboration on providing loans with credit guarantee, on November 2021, CGCC and Maybank Cambodia also co-organized the Business Forum on “Supporting SME Businesses in Cambodia” to discuss more details about the possibility of collaboration on how to support SMEs for greater access to finance despite collateral issue and the support of SME’s capacity Building and long-term growth.

CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”
CGCC and Maybank Co-organized the “SME Building Capacity and Capability (BCC) Programme”

Press Release of Virtual Seminar on “Credit Guarantee – Benefits & Opportunities to Support SME Development”

Posted on by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC) is organizing a virtual seminar on “Credit Guarantee – Benefits & Opportunities to Support Small and Medium Enterprises (SME) Development” today with support from the Ministry of Economy and Finance, Asian Development Bank (ADB), and the United Nations Capital Development Fund (UNCDF). The seminar brings together relevant stakeholders including the Government, Development Partners, Financial Institutions, and business representatives to discuss the benefits and opportunities of using credit guarantees to support business survival and expansion.

The extent to which credit guarantees can contribute to restoring the economy depends on the lenders’ and borrowers’ perspectives toward credit guarantees. The seminar, therefore, focuses the discussion on their perspectives toward credit guarantees. All speakers shared a common view that lack of collateral is one of the main challenges for businesses to access formal loans. They agreed that credit guarantees can support banks and Micro-Finance Institution (MFIs) to lend out more to businesses, especially those who lack collateral.

The seminar also digs into stakeholders’ ongoing efforts to improve SME access to finance for the economic re-opening in Cambodia. The Government has introduced many policy interventions to support SME access to finance. In addition, relevant stakeholders have spared​ efforts which include, among others, increasing financial literacy, introducing innovative financial solutions, and upgrading financial sector infrastructure. The panelists demonstrated their commitment to continue supporting SMEs’ access to financial services.

Prominent speakers in this seminar include the President of Federation of Associations of SMEs of Cambodia (FASMEC), Vice President of Cambodia Women Entrepreneurs Association (CWEA), President of Young Entrepreneurs Association of Cambodia (YEAC), Chairman of Cambodia Microfinance Association & CEO of AMK Microfinance, CEO of Canadia Bank, Deputy Director General of General Department of Policy of Ministry of Economy and Finance, and Senior Financial Sector Specialist from the ADB, and Senior Regional Technical Advisor from UNCDF, and CGCC’s management. This seminar attracted more than 300 participants from various institutions – Government, development partners, financial institutions, and business communities.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses. As of 10 December 2021, CGCC has provided guarantees for 173 loans with a total amount of over USD 20 million.

Phnom Penh, 16 December 2021

Credit Guarantee Corporation of Cambodia

Press Release-$200 million Business Recovery Guarantee Scheme launched by Credit Guarantee Corporation of Cambodia to Support Businesses

Posted on by Sorn Chhorvyvatey

Phnom Penh, 29 March 2021

The Ministry of Economy and Finance is pleased to announce the launch of the Business Recovery Guarantee Scheme (BRGS) by Credit Guarantee Corporation of Cambodia (CGCC) today. The BRGS aims to support businesses including micro, small and medium enterprises, and large firms to enhance their access to formal loans from Participating Financial Institutions (PFIs) for working capital, investment, and business expansion. This initiative is in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during the COVID-19 pandemic.

CGCC is the first-ever credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. CGCC’s main mission is to provide credit guarantees to PFIs to support and assist financially viable businesses that lack collateral when applying for loans.

The first tranche of the BRGS will contribute to $200 million​ increase of new loans in the banking sector for business owners to borrow from the following CGCC’s PFIs i.e., ACLEDA Bank, Asia Pacific Development Bank, AMK MFI, Cambodia Post Bank, Canadia Bank, Phillip Bank and Prince Bank. The scheme will also be available at other banks and MFIs that are in the process of becoming CGCC’s PFIs. CGCC’s guarantee will act as collateral/security for 70%-80% of the loan amount borrowed from the PFIs; thus, reducing the physical collateral required from the borrowers.

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 BRGS by CGCC is timely to support businesses who plan to borrow from the PFIs during this pandemic. This milestone supports the Government’s policy to maintain sustainable and inclusive economic growth and in line with the Industrial Development Policy 2015–2025. He calls for banks and MFIs to support CGCC by being its PFIs and ensure good credit governance.

Cambodian-owned businesses (>50%​ ownership) may approach the above PFIs for the CGCC scheme or visit CGCC’s website www.cgcc.com.kh for more information. The Ministry of Economy and Finance and CGCC look forward to working closely with all stakeholders to support the growth of businesses with the BRGS.