The Wholesale Guarantee Scheme (WGS) ensures CGCC guarantee for small and medium enterprise (SME) loans provided by Wing Bank. The deal enables CGCC to share risk with PFIs and reduce the risk weight on the part of the exposure guaranteed by CGCC.

Credit Guarantee Corporation of Cambodia (CGCC) and Wing Bank (Cambodia) Plc signed a $50 million Wholesale Guarantee Scheme (WGS), which is their first, to provide guarantee for small and medium enterprise (SME) loans of participating financial institutions (PFIs), according to a joint statement.

The agreement indicates that Wing Bank is the first CGCC PFI to receive CGCC’s wholesale guarantee, aiming to expand the bank’s capacity to provide essential financing to SMEs, and in line with CGCC’s shared commitment to improve financial inclusion and contribute to national economic growth.

It enables CGCC to share risk with PFIs and reduce the risk weight on the part of the exposure guaranteed by CGCC.

“SMEs are the heartbeat of our economy, and with this partnership, we are better equipped to support their ambitions, fuel their resilience and unlock their potential. I believe that when we invest in SMEs, we invest in the future of Cambodia,” said Dmytro Kolechko, CEO of Wing Bank.

He added that the development of an inclusive financial ecosystem with the government and CGCC will empower entrepreneurs and strengthen communities.

A Prakas on Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions on June 29, 2023, exposures denominated in riel or currency that are clearly and unconditionally guaranteed by the government, including guarantees by credit guarantee schemes, are zero percent risk-weighted.

“This innovative guarantee scheme will mutually benefit Wing Bank and CGCC. It will assist CGCC in effectively managing the quality of our guarantee portfolio to ensure long-term sustainability. Most importantly, it will increase available lending to SMEs,” said No Lida, CEO of CGCC.

Credit to: Kiripost, Publish on 18 July 2025