Synopsis: The credit guarantee mechanisms play a crucial role in supporting micro, small and medium-sized enterprises (MSMEs) that require financing to expand their production capacity.

The Credit Guarantee Corporation of Cambodia (CGCC) has guaranteed more than $365 million in loans as of July 31, 2025, reflecting steady progress in its mission to support businesses’ access to finance.

According to CGCC’s latest factsheet released yesterday, the total number of guaranteed accounts reached 6,579, with guaranteed loans amounting to $365.36 million. The outstanding guaranteed loan stood at $217.50 million, while the outstanding guaranteed amount totalled $148.83 million.

The data also revealed that wholesale guarantees (WG) surged in July, with $50 million approved, marking the highest monthly figure this year. Individual guarantees (IG) and portfolio guarantees (PG) have maintained consistent growth throughout 2025, with cumulative approved guaranteed loans of $61.58 million and $253.78 million, respectively.

In terms of loan distribution, Khmer Riel-denominated loans accounted for 246.4 billion riels ($61.58 million), of which 182.2 billion riels was guaranteed. Meanwhile, USD-denominated loans amounted to $303.41 million, with $210.75 million guaranteed.

Loan size analysis shows that guaranteed accounts in KHR ranged between 8 million riel and 1.28 billion riel, with an average loan size of 173 million riels. For USD loans, the minimum size was $1,000 and the maximum $1.2 million, with an average of $58,000.

Despite the strong uptake, CGCC reported a non-performing guarantee (NPG) rate of 8.91 percent.

CGCC also highlighted its $10 million guaranteed bond initiative, which forms part of its wider effort to enhance access to finance for businesses.

With the continued expansion of guarantee schemes, CGCC said it remains committed to supporting small and medium-sized enterprises (SMEs) and other businesses in securing the financing needed to expand operations and contribute to Cambodia’s economic growth.

No Lida, Chief Executive Officer of CGCC, said recently that credit guarantee mechanisms are playing a crucial role in supporting micro, small and medium-sized enterprises (MSMEs) that require financing to expand their production capacity.

“SMEs with strong potential often face difficulties in securing loans due to insufficient collateral or higher levels of risk that banks and microfinance institutions are unable to accommodate.

“In such cases, the Royal Government, through the CGCC, steps in to provide guarantees, allowing these enterprises to access much-needed credit,” he explained.

Through the CGCC, which covers up to 80 percent of loans extended to SMEs, the government aims to encourage banks and microfinance institutions to increase lending in line with the financing needs of the sector.

The scheme operates in partnership with a number of participating financial institutions (PFIs), including the state-owned Agriculture and Rural Development Bank and SME Bank, which provide working capital and investment credit to support business expansion.

Established in November 2020, the CGCC has become Cambodia’s principal credit guarantee institution, tasked with strengthening financial inclusion and promoting SME growth. Its guarantee programmes have been instrumental in helping MSMEs secure the financing required to seize new investment opportunities, create jobs and raise incomes.

Credit to: Khmer Times, Publish on 21 August 2025