Co-Financing Guarantee Scheme

Press Release: $50 million Co-Financing Guarantee Scheme launched by Credit Guarantee Corporation of Cambodia to Support SMEs

Credit Guarantee Corporation of Cambodia (CGCC) is pleased to announce the launch of the Co-Financing Guarantee Scheme (CFGS). CFGS is specifically designed for the co-financing loans disbursed under the SMEs Co-Financing Scheme Phase II (SCFS II) of the SME Bank of Cambodia. CFGS and SCFS II are the joint efforts of the two state-owned enterprises to improve access to finance for SMEs. While SCFS II aims to lower SMEs’ cost of borrowing, CFGS is a guarantee scheme that will act as collateral/security for 70%-80% of the loan amount; thus, reducing the physical collateral required from the borrowers.

CGCC will launch the 1st tranche of the CFGS amounting to $50 million to guarantee loans under the SCFS II.  This scheme will support the growth of new loans in the banking sector to enable business owners to borrow from the Participating Financial Institutions (PFIs) of CGCC.  PFIs will be able to offer higher loan amounts and the risk exposure will be shared with CGCC up to 80%.

The Co-Financing Guarantee Scheme (CFGS) is the second credit guarantee scheme offered by the CGCC. CGCC launched the USD 200 million Business Recovery Guarantee Scheme (BRGS) in March 2021 to support the economic recovery during the COVID-19 pandemic. As of 21st September, CGCC has assisted 85 businesses including SMEs by providing credit guarantees for their loan applications from the PFIs amounting to USD 12 million.

H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors states that “the launch of the CFGS by CGCC is timely to provide additional support to the SCFS II of the SME Bank of Cambodia for risk-sharing with the PFIs. The two facilities will complement each other to address two key issues faced by the SMEs in access to finance: (1) high cost of borrowing and (2) collateral issues.”

Cambodian-owned SMEs (>50% ownership) may approach the PFIs of CGCC or contact CGCC through 023 722 123 or [email protected] or go to for more information. CGCC’s PFIs includes (in alphabetical order) ABA Bank, Acleda Bank, AMK MFI, Amret MFI, Asia Pacific Development Bank, BRED Bank, Cambodia Post Bank, CAMMA MFI, Canadia Bank, Chamroeun MFI, Foreign Trade Bank of Cambodia, J Trust Royal Bank, LOLC MFI, Phillip Bank, PPCBank, Prince Bank, RHB Bank, Sathapana Bank, and Wing Bank. CGCC looks forward to working closely with all stakeholders to support the growth of SMEs with the CFGS.