CGCC and Oriental Bank Announce Partnership to Provide Guaranteed Loans for businesses lacking collaterals
March 28, 2023Announcement
(Phnom Penh,27 March 2023): Credit Guarantee Corporation of Cambodia (CGCC) and Oriental Bank officially announce a partnership on Credit Guarantee Agreement to provide guaranteed loans for businesses that lack collateral. This cooperation will be a key financial instrument to assist businesses, especially Micro, Small, and Medium-sized enterprises (MSMEs) who are struggling to obtain loans due to insufficient collateral to pledge at the bank for business working capital and business expansion.
CGCC aims to improve financial inclusion and develop MSMEs with the mission in providing guarantees for loans through Participating Financial Institutions (PFIs) to MSMEs. Meanwhile, Oriental Bank is one of the liked-minded CGCC’s vision that focuses on serving the MSME sector by providing sustainable financial products and services that will add value to the customers, and economy. The partnership will enable eligible MSMEs to obtain loans without having to put up collateral, which is a major obstacle for many businesses in Cambodia.
Chief Executive Officer of CGCC, Mr. Wong Keet Loong, expressed excitement about this collaboration, saying “Our partnership with Oriental Bank marks our 26th participating FI to provide guaranteed loans. Though the bank is new, the senior management team has more than 25 years of banking experience in Cambodia with strong understanding of the SME financing needs.”
He further added that “For the first 3 months of 2023, CGCC has issued approximately 250 guarantees amounting to about $20mil. This is a good start for the year, and we believe the momentum will continue to support businesses in obtaining loans.”
Managing Director & Chief Executive Officer of Oriental Bank, Datuk Phan Ying Tong mentioned, “We are thrilled to be partnering with CGCC to support SMEs in Cambodia. This partnership is a significant milestone for us, it opens up new opportunites for us and it demonstrates our commitment to driving financial inclusion and promoting economic growth in the country. This latest offering is parallel with our corporate mission to be More Than Just a Bank, we strive to grow with our community and MSMEs and assist them in any way that we can. The partnership with CGCC has enabled eligible MSMEs to obtain financing facilities from Oriental Bank at a competitive rate without the necessary need to provide collaterals. This latest offering also reaffirms Oriental Bank’s commitment to supporting the development of MSME businesses, which form the backbone of the Cambodian economy.”
Oriental Bank has now become one of the 26 Participating Financial Institutions (PFIs) of CGCC, committed to assisting business entities in line with the government’s direction to support SMEs. CGCC and Oriental Bank are confident that this partnership will help to address the financing gap faced by many MSMEs in Cambodia and contribute to the growth and development of the country’s economy.
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 February 2022, CGCC has supported 1195 businesses by providing credit guarantees for their loan applications, amounting to USD 104.9 Million USD equivalent. CGCC has provided the most guarantee to SMEs, which accounts for 95% of the total businesses receiving the credit guarantee from CGCC.
About Oriental Bank
Oriental Bank, a new and fast-growing commercial bank that opens its’ doors on the 22nd of February 2022 will be opening its’ third branch early April 2023. Oriental Bank has a strong focus on providing the best customer service experience not only in the physical interactions with their customers at brick-and-mortar branches at high growth areas, but it is also seen in their user-centric design on their digital offerings like Oriental Mobile – Oriental Bank’s proprietary mobile banking application.
The cooperation will enable Oriental Bank to provide even more support to SMEs, helping to support them to access affordable and flexible financing options they need to succeed. By doing so, Oriental Bank is also positioning itself for greater success, as the bank continues to grow and expand its business offerings.
Click here to read more about: CGCC-guaranteed loans jump 13% year-to-date, top $104M