CGCC & Cambodian Public Bank Plc. entered into Partnership on Credit Guarantee
March 10, 2022Events and Activities
Cambodian Public Bank Plc. (Campu Bank) and Credit Guarantee Corporation of Cambodia (CGCC) entered into a partnership agreement on Credit Guarantee at Campu Bank Building on 24 February 2022.
The main objective of the partnership is to financially assist the Small and Medium-size Enterprises (SMEs) with easy access to funding for their business amid the COVID-19 challenges by providing working capital and capital expenditure financing which is also in line with the government’s initiative to assist SMEs to expand their business. Campu Bank will work closely with CGCC to promote guaranteed financing schemes that are offered by CGCC including the Business Recovery Guarantee Scheme (BRGS) to meet the needs and demands of the SMEs.
At the signing ceremony, Mr. Ong Ming Teck, Chief Executive Officer of Campu Bank said, “SMEs play a crucial role towards nation-building and economic growth of Cambodia by providing employment, income, and poverty reduction in the long term. The partnership would further strengthen our inspiration to promote financial inclusion and literacy to the SMEs and Cambodians especially those with limited access to low-cost financing and banking services.
Mr. Ong added that “the signing of the partnership is timely as Campu Bank is celebrating its 30th anniversary this year and more new products and services, and digital initiatives will be rolled out to benefit our customers as part of its celebration to mark our strong presence in Cambodia. We are confident of playing an instrumental role towards nation-building and providing financial access to the SMEs at all our 31 branches.”
Chief Executive Officer of CGCC, Mr. Wong Keet Loong mentioned that “CGCC is pleased to partner with Campu Bank which has a wide network of branches that can reach out to more customers to grow the development of SMEs.”
Mr. Wong added that “We are very encouraged to see the growth of the guaranteed loans in the first 2 months of the year which makes up about 45% of guarantees issued in 2021. With more economic activities, we are confident that the demand for credit guarantees will increase loans to business owners in Cambodia. We hope the participating FIs will reach out to more SMEs including the micro-segment to give them an opportunity to grow their business”
CGCC is a state-owned enterprise operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF) and officially incorporated in November 2020. CGCC’s mission is 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 21 February 2022, CGCC has supported 258 businesses by providing credit guarantees for their loan applications, amounting to USD 26.62 million. CGCC has provided the most guarantee to SMEs, which is accounted for 96% of the total businesses receiving the credit guarantee from CGCC.