Press Release Signing of Credit Guarantee Agreement between CGCC and the 2nd Batch of Participating Financial Institutions (PFIs)
June 29, 2021Announcement
Today Credit Guarantee Corporation of Cambodia (CGCC) signed the Credit Guarantee Agreement with the 2nd Batch of the Participating Financial Institutions (PFIs) comprising 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 makes the total number of CGCC’s PFIs increase to fifteen. The signing enables CGCC and the PFIs to collaborate on disbursing guaranteed loans to businesses in Cambodia.
The increasing number of CGCC’s PFIs would provide borrowers with more diverse choices of financial institutions across the country to seek financing under CGCC’s guarantee scheme. CGCC supports PFIs to disburse more loans to the borrowers, who are able to repay the loans but lack of collaterals, by providing 70% to 80% guarantees which could act as collaterals. The existence of CGCC means that borrowers now have a higher chance of getting loans from the PFIs despites lacking collaterals.
H.E. Ros Seilava, Secretary of States of Ministry of Economy and Finance and Chairman of CGCC’s Board of Directors said that “the credit guarantee mechanism is a new financial service in Cambodia that is expected to help resolve the financing challenges and bring 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 your customer base 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 USD 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 schemes or contact CGCC directly via our website www.cgcc.com.kh for more information. The fifteen CGCC’s PFIs includes (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.
Phnom Penh, 29 June 2021