PRESS RELEASE CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”

(Phnom Penh) ៖ On 17 January 2023 morning, the Ministry of Economy and Finance (MEF) and Credit Guarantee Corporation of Cambodia (CGCC) co-organize CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”. This Seminar is presided over by H.E. Dr. Mey Vann, Secretary of State of MEF, high representative of H.E. Akka Pundit Sopheacha, Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, with the participation of high-level management from the Ministry of Economy and Finance, National Bank of Cambodia, Ministry of Women’s Affairs, Ministry of Industry, Science, Technology and Innovation, National and International Development Partners, Banks and Financial Institutions, and associations of more than 150 participants.

The purposes of this Seminar are to review CGCC’s annual guarantee progress, discuss the challenges and solutions on the implementation of credit guarantee schemes, share views on credit guarantee schemes in SMEs development as well as study the experiences of credit guarantee schemes in Malaysia and Thailand.

H.E. Dr. Mey Vann, stated, “SMEs are the indispensable driving force to ensure Cambodia’s sustainable, inclusive, and resilient economic growth. SMEs have played important roles in supporting Cambodia’s socioeconomic development and contributed significantly to poverty reduction from 50.2% in 2003 to 17.8% in 2020 through job creation and income growth of the Cambodian people.

In this Seminar, H.E. Dr. Mey Vann, high representative of H.E. Akka Pundit Sopheacha, Deputy Prime Minister, launched the “Portfolio Guarantee Scheme” and presented the awards to outstanding Participating Financial Institutions (PFIs) of CGCC in 2022, consisting of Canadia Bank, Sathapana Bank, AMK Microfinance, ABA Bank, and LOLC Microfinance.

CGCC was established by the Royal Government of Cambodia at the end of 2022 and launched the first credit guarantee scheme in March 2021. By the end of December 2022, CGCC has provided guarantees on 985 business loans with a total loan amount of more than USD 92 million, most of which are loans without sufficient collateral.