PHNOM PENH, March 29 (Xinhua) — State-owned Credit Guarantee Corporation of Cambodia (CGCC) on Monday launched a 200-million-U.S.-dollar Business Recovery Guarantee Scheme (BRGS), aiming to support businesses during the COVID-19 pandemic.

The BRGS was designed 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, said a CGCC’s press statement.

CGCC is the first-ever credit guarantee corporation in Cambodia under the technical and financial guidance of the Ministry of Economy and Finance, the statement said, adding that its 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.

It said that the first tranche of the BRGS will contribute to 200 million U.S. dollars increase of new loans in the banking sector for business owners to borrow from the following CGCC’s PFIs including ACLEDA Bank, Asia Pacific Development Bank, AMK microfinance institution, Cambodia Post Bank, Canadia Bank, Phillip Bank and Prince Bank.

The scheme will also be available at other banks and microfinance institutions that are in the process of becoming CGCC’s PFIs.

CGCC’s guarantee will act as collateral or security for 70 percent to 80 percent of the loan amount borrowed from the PFIs; thus, reducing the physical collateral required from the borrowers, the statement said.

“The launch of the BRGS by CGCC is timely to support businesses who plan to borrow from the PFIs during this pandemic,” Economy and Finance Ministry secretary of state and CGCC’s chairman Ros Seilava said in the statement.

“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 added.