Category: ព័ត៌មានថ្មីៗ

Credit Guarantee Corporation of Cambodia (CGCC) 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 per cent – 80 per cent of the loan amount; thus, reducing the physical collateral required from the borrowers.

CGCC will launch the first 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 per cent.

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

Ministry of Economy and Finance secretary of state HE Ros Seilava, who is also the chairman of CGCC’s board of directors, said 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 – high cost of borrowing and collateral issues.”

Cambodian-owned SMEs (>50 per cent ownership) may approach the PFIs of CGCC, contact CGCC at 023 722 123 or [email protected] or visit www.cgcc.com.kh for more information. CGCC’s PFIs includes 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.

Credit to: Phnom Penh Post, 22 September 2021 

Khmer Times: June 30, 2021

The Credit Guarantee Corporation of Cambodia (CGCC) has signed a credit guarantee agreement with a second batch of participating financial institutions (PFIs) comprised of (in alphabetical order) Amret Micro-Finance Institution (MFI), BRED Bank, Camma MFI, Foreign Trade Bank of Cambodia, J Trust Royal Bank, LOLC MFI and Sathapana Bank. This increases the total  number of CGCC PFIs to 15.

The signing enables the CGCC and PFIs to collaborate on disbursing guaranteed loans to businesses in Cambodia.

The increased number of CGCC PFIs will provide borrowers with a more diverse choice of financial institutions across the country to seek financing under the corporation’s guarantee scheme. CGCC supports PFIs in disbursing loans to borrowers who are deemed able to repay them but lack  collateral, by providing 70 to 80 percent guarantees that take the place of traditional collateral.

Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC’s board of directors Ros Seilava said: “The credit guarantee mechanism is a new financial service in Cambodia that is expected to help resolve the financing challenges and bring [a] new lending culture to banks and microfinance institutions. I would like to encourage the PFIs to seize the opportunity of partnering with CGCC to expand [their customer bases] and market segments through the provision of new loans with the guarantees from CGCC. At the same time, to reap the long-term benefits of this credit guarantee scheme, it is very critical for the PFIs to adhere to professionalism and strengthen the governance on credit assessment and monitoring.”

CGCC launched the $200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support businesses including micro, small and medium enterprises, as well as large firms, to enhance their access to formal loans from the PFIs for working capital, investment and business expansion.

The scheme is available until the end of  2022 and the guaranteed loans will be disbursed through the PFIs on a “first-come, first-serve basis”. So far, 18 guarantees have been issued to PFIs under the BRGS.

Eligible borrowers may approach the PFIs for the CGCC’s guarantee scheme or contact it directly via its website www.cgcc.com.kh for more information.

The 15 CGCC’s PFIs include (in alphabetical order) ACLEDA Bank, AMK MFI, Amret MFI, Asia Pacific Development Bank, BRED Bank, Cambodia Post Bank, CAMMA MFI, Canadia Bank, Foreign Trade Bank of Cambodia, J Trust Royal Bank, LOLC MFI, Phillip Bank, Prince Bank, RHB Bank and Sathapana Bank.

Credit to: Fresh News, 21 June 2021

ធនាគារ អ អេច ប៊ី (ខេមបូឌា) ម.ក និង សាជីវកម្ម ធានាឥណទាន កម្ពុជា (ស.ធ.ក.) បានធ្វើពិធីចុះហត្ថលេខាលើកិច្ចព្រមព្រៀងភាពជាដៃគូពាណិជ្ជកម្ម ដោយបានរៀបចំឡើងនៅទីស្នាក់ការកណ្តាលរបស់ ធនាគារ អ អេច ប៊ី ។

តាមរយៈកិច្ចព្រមព្រៀងនេះដែរ ធនាគារ អ អេច ប៊ី នឹងចូលរួមក្នុងយុទ្ធនាការ គម្រោងធានាឥណទានដើម្បីស្តារអាជីវកម្ម(BRGS) ជាមួយសាជីវកម្មធានាឥណទានកម្ពុជា (ស.ធ.ក.) ដែលមានគោលដៅគាំទ្រអាជីវកម្ម ទាំងអាជីវកម្មខ្នាតមីក្រូ សហគ្រាសខ្នាតតូចនិងមធ្យម និងសហគ្រាសខ្នាតធំ ក្នុងការពង្រីកលទ្ធភាពទទួលបានហិរញ្ញប្បទានពីគ្រឹះស្ថានហិរញ្ញវត្ថុចូលរួម (PFIs) សម្រាប់ការកៀរគរទុនបង្វិល, វិនិយោគ, និងការពង្រីកអាជីវកម្ម។ BRGS នឹងដើរតួជាទ្រព្យបញ្ចាំចាប់ពី ៧០% ទៅ ៨០% នៃទំហំប្រាក់កម្ចីដែលផ្តល់ដោយ PFIs ដល់អាជីវកម្មដែលបានស្នើកម្ចី។

លោក WONG KEE POH អគ្គនាយក / នាយកប្រតិបត្តិនៃធនាគារ អ អេច ប៊ី បានលើកឡើងថា សហគ្រាសខ្នាតតូចនិងមធ្យមដើរតួយ៉ាងសំខាន់នៅក្នុងសេដ្ឋកិច្ចរបស់ប្រទេសកម្ពុជា ដោយគ្របដណ្តប់ប្រមាណ៩៩% នៃអាជីវកម្មនៅក្នុងប្រទេស, ៧០%នៃអត្រាបុគ្គលិក និង ៦០%នៃផលិតផលក្នុងស្រុកសរុប (GDP)។

បញ្ហាប្រឈមមួយក្នុងចំណោមបញ្ហាប្រឈមសំខាន់ៗ សម្រាប់សហគ្រាសធុនតូចនិងមធ្យម គឺការទទួលបានមូលនិធិនិងការគាំទ្រ ដើម្បីពង្រីកអាជីវកម្មរបស់ ពួកគេ។ ដូច្នេះ ជាមួយនឹងភាពជាដៃគូរវាងធនាគារ អ អេច ប៊ី និង ស.ធ.ក ធនាគារ អ អេច ប៊ី នឹងបានចូលរួមនិងគាំទ្របន្ថែមទៀតដល់សហគ្រាសធុនតូច និងមធ្យមក៏ដូចជាការស្តារឡើងវិញនូវអាជីវកម្មរបស់អតិថិជនរបស់ធនាគារ ក្នុងអំឡុងពេលនៃវិបត្តិ Covid-19 ។ ធនាគារយល់ថាការឆ្លើយតបរបស់ គម្រោងធានាឥណទានដើម្បីស្តារអាជីវកម្ម ត្រូវបានលើកទឹកចិត្តដោយការកើនឡើងនូវ អត្រាប្រើប្រាស់របស់អតិថិជន។

លោក WONG KEET LONG នាយកប្រតិបត្តិនៃធនាគារ សាជីវកម្ម ធានាឥណទាន កម្ពុជា ក៏បានលើកឡើងដែរថា ភាពជាដៃគូជាមួយធនាគារ អ អេច ប៊ី គឺជាការសហការណ៍ដំបូងបំផុតជាមួយធនាគារដែលគ្រប់គ្រងដោយជនជាតិម៉ាឡេស៉ី ដែលបានទទួលបានការជោគជ័យយ៉ាងខ្លាំងក្នុងការផ្តល់ប្រាក់កម្ចីខ្នាតតូច និងមធ្យម ដោយមានការ ធានាឥណទាន នៅក្នុងប្រទេសម៉ាឡេស៉ី។ យើងសង្ឃឹមថាធនាគារ នឹងបន្តបង្កើតភាពជោគជ័យនេះនៅក្នុងប្រទេសកម្ពុជា ដើម្បីបង្កើនប្រាក់កម្ចីរ បស់ខ្លួនដល់សហគ្រាសធុនតូចនិងមធ្យមជាមួយ នឹងការធានារបស់ ស.ធ.ក ។

អត្ថបទគួរចាប់អារម្មណ៍ ពិធីចុះហត្ថលេខា លើកិច្ចព្រមព្រៀងធានាឥណទានរវាង សាជីវកម្មធានាឥណទានកម្ពុជា និង គ្រឹះស្ថានមីក្រូហិរញ្ញវត្ថុចម្រើន

Khmer Times: April 19, 2021

Small businesses raising questions about the process of applying for a loan through the newly formed Credit Guarantee Corporation of Cambodia (CGCC)’s Business Recovery Guarantee Scheme (BRGS), has prompted CGCC’s chief executive officer Mr Wong Keet Loong to provide an overview of how the scheme works.

He noted first that the BRGS scheme was launched late last month to help support SMEs which have difficulty taking out loans due to a lack of securable assets.

Under the BRGS scheme, the CGCC provides a guarantee of 70 to 80 percent of the value of the loan depending on the sector, assuring Participating Financial Institutions (PFIs) they will be secured in lending to the SMEs. The guarantee acts as part of the collateral or security for the loan. The scheme, however, will not let SMEs off the hook if they find themselves in default.

Wong said: “The SMEs are ultimately responsible to repay the loans.  [The] CGCC guarantee will assist in enabling the SMEs to borrow from the PFIs.  As such, in the event that the SMEs are unable to repay the loan due to failure of business, the CGCC guarantee will be the last resort for PFI to claim for the losses.”

In the case of a default and the CGCC guarantee being paid out, the PFIs would continue to seek repayment from the SMEs with the CGCC being proportionally reimbursed from any recoveries made, Wong added.

The interest rates for the loans are determined by the PFIs.

Wong added that any business interested in the loan should have the capacity to repay it. It’s intended to help companies continue operating, as opposed to serving as an initial investment for a startup company.

Each PFI has to individually assess each loan applicant and ensure they are able to meet the institution’s requirements to borrow. While the BRGS scheme allows for loans to be extended to clients, it doesn’t guarantee approval for an applicant who otherwise would be denied.

Wong said the scheme helps businesses, the banks and the country.

“Our motive when we started this scheme was to create more loans so that businesses can use the money for direct reasons and grow their business. This indirectly helps the country to grow,” he said.

He added that the CGCC – the first of its kind in Cambodia — will be here for the long haul and similar institutions exist in other regional countries, including his home country of Malaysia.

In light of the recent lockdown  he said all businesses are encouraged to apply  once business operations resume as normal.

While the scheme has yet to take off due to the pandemic, the CGCC has received an application for a $1 million loan from a company in the industrial sector, the limit allowed in the programme.

It appears the first list of PFIs participating in the scheme have yet to start advertising the product on their websites. The current list includes: ACLEDA Bank, AMK MFI, APD Bank, Cambodia Post Bank, CANADIA Bank, Phillip Bank, and Prince Bank.

Mr. Huot Sokha, AMK’s chief business officer, said: “The BRGS is still in progress, therefore we cannot share its details yet. We have continuously supported businesses through many different activities as much as we can. In April last year we rolled out a co-financing loan campaign to support SMEs that was advertised throughout our branch networks and on social media as well. Taking part in such programmes is our commitment to support sustainable SMEs in Cambodia, especially during the pandemic, which is a very tough time for them.”

AKP Phnom Penh, March 29, 2021 —

The Ministry of Economy and Finance and Credit Guarantee Corporation of Cambodia (CGCC) today launched the Business Recovery Guarantee Scheme (BRGS).

According to the ministry’s press release made public this morning, the BRGS aims to support business 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 US$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 bank and MFIs that are in the process of becoming CGCC’s PFIs. CGCC’s guarantee will act as collateral/security for 70-80 percent 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 the Ministry of Economic and Finance, and Chairman of CGCC’s Board of Directors states that the launch 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 percent 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,” underlined the press release.

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.

Phnom Penh Post: 26 November 2020

The Credit Guarantee Corporation of Cambodia (CGCC) is on track to be launched in the first half of next year, Banking Association of Cambodia (ABC) president In Channy told The Post on November 26.

The CGCC was established by Sub-Decree No 140 ANKr BK on September 1, coming under the Ministry of Economy and Finance and with $200 million in registered capital from the government.

The sub-decree said the corporation will provide loans “in a professional manner” to tackle challenges in the lending market and promote financial inclusion.

It read: “The CGCC will be tasked with providing credit services, evaluating and managing risks, cooperating with banks and financial institutions and development partners that also provide credit services, et cetera.”

The corporation sets out to increase access to financing for Covid-19-strained businesses in priority sectors and adapt to the Kingdom’s post-Covid-19 start-up landscape.

It officially registered with the Ministry of Commerce on November 13.

Channy said the CGCC will guarantee a source of capital for small- and medium-sized enterprises (SMEs) with limited collateral and provide them with collateral protection insurance.

He said the corporation would serve as a much-needed crutch for the private sector, and would particularly be able to respond to struggling SMEs’ credit needs.

“We have seen in the past that most of the SMEs that applied for loans at their banks and microfinance institutions [MFIs] did not have sufficient collateral, which made it impossible for them to fully obtain the loans that they need,” Channy said.

During a promotional programme for CGCC held at the finance ministry on November 23, senior government officials called on SMEs that have been unable to access loans during Covid-19 to apply at the corporation.

Speaking during the programme, ministry undersecretary of state Ros Seilava said the CGCC will help SMEs rehabilitate their businesses during Covid-19, and would focus chiefly on the agricultural, industrial and service sectors.

“I would like to appeal to all SMEs that have been facing difficulties in obtaining financing from commercial banks to re-apply for loans there,” he said.

He claimed that in 2021-2023, the amount that SMEs can borrow will be capped at $500,000. “Our gameplan is to help SMEs run their businesses smoothly during this health crisis,” Seilava said.

In a press release, the ministry said the CGCC will break through barriers to effective financing processes and provide new opportunities for banks and MFIs to expand their customer base.

“The CGCC will provide a substantial boon for the Cambodian economy – it will promote financial inclusion, support new growth sources and diversify the economy in line with industrial development policies, as well as offer an environment conducive to the creation of new loan products,” it said.

Through the corporation, the government will share risk with banking institutions, MFIs, as well as business owners in credit operations in order to breed credit and economic activity that would not manifest otherwise, the ministry said.

The CGCC will shield businesses from Covid-19 fallout and promote the long-term development of SMEs, it said.

According to Seilava, to rehabilitate the economy after the Covid-19 crisis, the government is seeking more funding from international financial partners, claiming that the World Bank plans to provide about $100 million in loan to government for additional capital.

Khmer Times: July 24, 2020

MINISTER of Economy and Finance Aun Pornmoniroth approved in principle the concept of strategic framework for establishing the Credit Guarantee Corp Cambodia, according to a statement from the Ministry of Economy and Finance (MEF).

MEF’s statement read that the initiative of the establishing corporation is to align with the government’s response mechanism for the fourth-round measures to mitigate the impact of COVID-19 on businesses and workers in Cambodia during the health crisis and to promote economic growth and help businesses rebound.

It said that the Credit Guarantee Corp Cambodia will play a role in providing a credit guarantee scheme (CGS) to companies and businesses in prioritised sectors that are severely affected by COVID-19 in order to enable them to increase the possibility of accessing financing for their working capital, ensuring a sustainable business and aligning with a new context for the business after coronavirus is beaten.

A meeting on the subject discussed the purpose on the establishment of the corporation. It noted challenges are expected to happen during its operation and an action plan to implement the project was prepared.

“The meeting has agreed in principle on the concept of strategic framework for establishing the Credit Guarantee Corporation Cambodia. For the next step, the MEF will proceed with the procedure for the regulation framework, deliver relevant documents, and cooperate with relevant stakeholders in order to make the Credit Guarantee Corporation Cambodia operational soon,” the statement read. “To ensure that the Credit Guarantee Corporation of Cambodia provides credit guarantees for the right targets and efficiency in the urgent stage of COVID-19, the MEF will set up a policy to provide the credit guarantees by determining the sectors, sorts of company, types of businesses that are potential for getting a credit guarantee from the  Credit Guarantee Corporation of Cambodia,” said the MEF.

MEF spokesman Meas Soksensan, told the Khmer Times that the ministry continues working on the criteria and procedures on how to guarantee it gets to the next working phase, but we have reserved the budget to support this scheme.

“We [the government] have an initiative to help the private sector and facilitate the private sector. However, we have to make sure that the money is not lost. It is risk-sharing with the private financial sector,” he added.

“We have to be careful with this because we cannot just give guarantees, but we have to ensure it is not run at a loss because it is a lot of money.”

He said that the credit-guarantee scheme will guarantee loans that are drawn down from the SME Co-Financing Scheme.

On May 26, the government rolled out the fourth-round measures aimed at mitigating the impact of COVID-19 on businesses and workers in Cambodia. These latest measures consist of a combination of new measures and an extension of those measures already in place.

In addition to providing relief to businesses and workers amid the Covid-19 outbreak, this round of measures is also intended to promote economic growth and help businesses rebound after the COVID-19 crisis.

Additionally, the MEF will establish a $200 million credit guarantee fund to provide loan guarantees to ease the cash flow and working capital pressures of businesses in all sectors, which is expected to generate liquidity of at least $2,000 million.

The MEF will also provide additional financing of up to $300 million to promote growth in key sectors during and after the Covid-19 crisis.