CGCC and CIMB Bank Joint Hands to Provide Guaranteed Loans for Businesses that Lack Collaterals
December 13, 2022Announcement
(Phnom Penh, 07 December 2022): Credit Guarantee Corporation of Cambodia (CGCC) and CIMB Bank officially announced the partnership with the signing ceremony of the Credit Guarantee Agreement to provide guaranteed loans to support micro, small and medium enterprises (MSMEs) in Cambodia for business expansion, investment, and/or working capital.
The partnership between CGCC, a state-owned enterprise, operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF) and CIMB Bank, a commercial bank with a wide range of networks in Cambodia, will enable CIMB Bank to support and assist business entities which are financially viable requesting for financing by using guarantees under the CGCC’s Credit Guarantee Scheme (CGS) without having to provide collaterals.
Chief Executive Officer of CGCC, Mr. Wong Keet Loong mentioned that “This partnership with CIMB Cambodia marks our 25th participating FI, to provide guaranteed loans to support the micro, small and medium enterprises (MSMEs) to grow their business.”
“As of 30th November 2022, CGCC has guaranteed loans close to 900 MSMEs amounting to about $85mil of loans. We are optimistic that the credit guarantee will be used as a good risk sharing mechanism for loans to MSMEs during the recovery stage of the economy. The guaranteed loans by CGCC will boost the confidence of FIs in providing loans to support the growth of MSMEs.” said Mr. Wong.
Mr. Bun Yin, Chief Executive Officer of CIMB Bank, said in the ceremony that “This partnership opens an opportunity for CIMB Bank to support Cambodian MSMEs through its innovative banking products and services. The collaboration with CGCC has enabled MSMEs to obtain financing facilities from CIMB Bank at a competitive rate without having the need to provide collaterals.”
“This latest offering also reaffirms CIMB Bank’s commitment to support the development of MSME businesses, which form the backbone of Cambodian economy.” added Mr. Bun Yin.
CIMB Bank has now become one of the 25 Participating Financial Institutions (PFIs) committed to assisting business entities in line with the government’s direction to support SMEs.
The collaboration between CGCC and CIMB Bank will enable businesses and SMEs to borrow without collateral or alternatively getting a higher loan amount than the value of any collateral offered.
CGCC is a state-owned enterprise established by a Sub-Decree of the Royal Government of Cambodia dated 01 September 2020. CGCC is operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF) with the mission to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion.
As of the end of November 2022, CGCC has supported 899 businesses by providing credit guarantees for their loan applications, amounting to USD 85.73 million equivalent. CGCC has provided the most guarantee to SMEs, which accounts for 95% of the total businesses receiving the credit guarantee from CGCC.
About CIMB Bank PLC
CIMB Bank PLC was established in Cambodia on 19 November 2010 with the opening of a commercial banking branch in the heart of Phnom Penh. Today, the Bank operates 14 branches across five major cities: Phnom Penh, Siem Reap, Preah Sihanouk, Battambang and Kampong Cham.
We currently serve more than 35,000 corporate and individual customers. In response to growing demand from our customers across Cambodia, the Bank offers a wide range of banking products and services including consumer, commercial, corporate & transaction banking and financial institution group. CIMB Bank PLC is a Cambodian subsidiary of CIMB Group, a leading focused ASEAN bank and one of the region’s foremost corporate advisors.
Click here to read more about: CGCC supports the accelerating SMEs’ Financial Literacy through the “I’m Financially Literate Program” second cohort