PRESS RELEASE UNIDO, FIA & CGCC LAUNCH INNOVATIVE INVESTMENT SUPPORT FACILITY (ISF) SCHEME TO CATALYZE GROWTH IN CAMBODIA’S POST-HARVEST FISHERIES
Category: Announcement
PRESS RELEASE Signing Ceremony on MOU Between CGCC and Cambodia Rice Federation and Rice Export Guarantee Scheme Agreement Between CGCC and Participating Financial Institutions
Extension of Request for Proposal “Legal Counsel”
CGCC is a state-owned enterprise, established under the technical and financial guidance of the Ministry of Economy and Finance (MEF) to provide credit guarantees based on international standards to improve financial inclusion and support the growth of SMEs in Cambodia. CGCC obtained the accreditation from the Securities and Exchange Regulator of Cambodia (“SERC”) to become the bond guarantor on 22 August 2023 (“Bond Guarantor” or “Guarantor”).
CGCC wishes to provide guarantee on bonds to be listed on the Cambodia Securities Exchange.
CGCC is seeking to engage a Cambodian legal counsel (“Legal Counsel”) to perform the services as described in the scope of work.
PRESS RELEASE CGCC ANNUAL SEMINAR ON “DIVERSIFYING CREDIT GUARANTEE MECHANISM FOR SUSTAINABLE FINANCING OF MSMES”
Press Release – Prakas on Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions of National Bank of Cambodia
Credit Guarantee Corporation of Cambodia (CGCC) is pleased to inform the Participating Financial Institutions (PFIs) that on 29th June 2023 the National Bank of Cambodia (NBC) announced the implementation of “Prakas on Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions”. In the press release issued on the same day about this Prakas on Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions, NBC stated the purpose of this Prakas is to develop a comprehensive credit risk weight, which varies according to the type of credit, borrowers, or counterparties and reflect the level of risk that the institution may actually face in order to strengthen the effectiveness of risk management.
The press release of NBC also mentioned the implementation of prudent and well-balanced measures and careful consideration to promoting the development of the banking and financial sector and national economic growth, as well as to support the Royal Government of Cambodia in implementing relevant policies, including special attention to “Support credit guarantee mechanisms established by the Royal Government of Cambodia, such as the Credit Guarantee Corporation of Cambodia (CGCC), with a zero percent risk weight on the part of the exposure that is guaranteed in order to facilitate Micro, Small and Medium Enterprises in access to more sources of fund”.
CGCC is the first-ever credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. CGCC’s main 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.
Phnom Penh, 03 July 2023
PRESS RELEASE CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”
(Phnom Penh) ៖ On 17 January 2023 morning, the Ministry of Economy and Finance (MEF) and Credit Guarantee Corporation of Cambodia (CGCC) co-organize CGCC Annual Seminar on “Role of Credit Guarantee Schemes in SMEs Development in Cambodia and ASEAN”. This Seminar is presided over by H.E. Dr. Mey Vann, Secretary of State of MEF, high representative of H.E. Akka Pundit Sopheacha, Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, with the participation of high-level management from the Ministry of Economy and Finance, National Bank of Cambodia, Ministry of Women’s Affairs, Ministry of Industry, Science, Technology and Innovation, National and International Development Partners, Banks and Financial Institutions, and associations of more than 150 participants.
The purposes of this Seminar are to review CGCC’s annual guarantee progress, discuss the challenges and solutions on the implementation of credit guarantee schemes, share views on credit guarantee schemes in SMEs development as well as study the experiences of credit guarantee schemes in Malaysia and Thailand.
H.E. Dr. Mey Vann, stated, “SMEs are the indispensable driving force to ensure Cambodia’s sustainable, inclusive, and resilient economic growth. SMEs have played important roles in supporting Cambodia’s socioeconomic development and contributed significantly to poverty reduction from 50.2% in 2003 to 17.8% in 2020 through job creation and income growth of the Cambodian people.
In this Seminar, H.E. Dr. Mey Vann, high representative of H.E. Akka Pundit Sopheacha, Deputy Prime Minister, launched the “Portfolio Guarantee Scheme” and presented the awards to outstanding Participating Financial Institutions (PFIs) of CGCC in 2022, consisting of Canadia Bank, Sathapana Bank, AMK Microfinance, ABA Bank, and LOLC Microfinance.
CGCC was established by the Royal Government of Cambodia at the end of 2022 and launched the first credit guarantee scheme in March 2021. By the end of December 2022, CGCC has provided guarantees on 985 business loans with a total loan amount of more than USD 92 million, most of which are loans without sufficient collateral.
Click here to read more about: 12th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC
Press Release – The Extension of the Business Recovery Guarantee Scheme of Credit Guarantee Corporation of Cambodia
The Credit Guarantee Corporation of Cambodia (CGCC) is pleased to announce the extension of the “Business Recovery Guarantee Scheme (BRGS)” from 1 January 2023 until the scheme is fully utilized.
BRGS aims to support businesses, including Micro, Small, and Medium Enterprises (MSMEs) and Large Firms, to enhance their access to formal loans from Participating Financial Institutions (PFIs) for working capital, investment, and business expansion. BRGS, with a scheme size of USD 200 million, was first launched from 29 March 2021 to 31 December 2022. As of 31 December 2022, a total loan of approximately USD 89 million, of which, most of the loans do not have collateral, is guaranteed by CGCC under BRGS.
CGCC received the highest approval from His Excellency Deputy Prime Minister, Minister of Economy and Finance on the extension of the BRGS by updating some scheme features, including the scheme period, the definition of MSMEs and Large Firms, and the maximum loan amount for each guarantee (please visit CGCC’s website www.cgcc.com.kh for detailed information).
CGCC’s credit guarantee under BRGS will continue to act as collateral for 70% – 80% of the loan amount borrowed from the PFIs, thus, reducing the physical collateral required from the borrowers.
CGCC looks forward to working closely with all stakeholders to support the growth of businesses with the BRGS. Thank you.
Phnom Penh, 3 January 2023
Press Release Conference on “Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia”
Phnom Penh, 18 August 2022: Ministry of Economy and Finance (MEF) and Credit Guarantee Corporation of Cambodia (CGCC) co-organized a “Conference on Credit Guarantee Schemes’ Potential to Strengthen SME’s Financial Inclusion in Cambodia” presided over by H.E. Ros Seilava, Secretary of State, Ministry of Economy and Finance, and Chairman of CGCC, and H.E. Dr. Chea Serey, Assistant Governor and Director General of Central Banking, National Bank of Cambodia, with the participation of representatives from the Government, development partners, financial institutions, business associations, and business owners, especially SMEs, of more than 100 participants. The Conference aims to discuss using credit guarantees to strengthen SME’s financial inclusion, raise awareness of credit guarantees, and share experiences and lessons learned from guaranteed loan disbursements.
H.E. Ros Seilava, Secretary of State, highly appreciated today’s Conference, which is an important forum to raise awareness of the credit guarantees through the discussion and experience sharing among related stakeholders. H.E. Secretary of State said, “The Government launched the public credit guarantee scheme by establishing CGCC more than one year ago. As of July 2022, CGCC has supported the disbursement of about $57 million new loans with credit guarantees to businesses that lack collateral through the Participating Financial Institutions (PFIs). Even though this $57 million is a small amount, it is the starting of new lending practices that do not rely on collateral in Cambodia’s credit market.”
H.E. Dr. Chea Serey mentioned in her keynote address the contribution of the National Bank of Cambodia (NBC) as the regulator who plays a critical role in supervising the banking sector. H.E. Dr. Chea Serey said, “Understanding the importance of SMEs in the economy and their challenges in access to finance to the banking and financial institutions, the Government decided to establish the credit guarantees to support SMEs that lack collateral. CGCC’s credit guarantee is a good policy tool; however, SMEs should not remain laissez-faire. SMEs shall continue to improve their capacity, i.e., by leveraging technology.”
Mr. Wong Keet Loong, Chief Executive Officer of CGCC, expressed his gratitude to the Royal Government of Cambodia, who, through the Ministry of Economy and Finance, has always provided strategic guidance to CGCC to expand the credit guarantees to support the Government’s financing policy. Mr. Wong said, “As of the start of Q3 2022, CGCC has expanded its guaranteed coverages to all over the country, even in the remote provinces, thanks to the vast branch networks of CGCC’s PFIs across the country. However, more still needs to be done to improve financial inclusion for different groups of businesses in other parts of the country.”
During the conference, the representatives from CGCC’s PFIs, Canadia Bank and Sathapana Bank, shared common views on the importance of credit guarantees in supporting banks to disburse more loans to businesses, especially businesses that lack collateral. The banks’ representatives also shared their lending strategies with credit guarantees.
Two SME borrowers were invited to share their practical experiences in access to guaranteed loans with CGCC’s PFIs. Credit guarantees helped both business owners who did not have collateral to get loans for their business’s operations.
Moreover, representatives from relevant stakeholders, including the Government (a representative from the MEF), the regulator (a representative from NBC), the lender (a representative from Maybank Cambodia), the business owners (a representative from the Young Entrepreneurs Associations of Cambodia) and the credit guarantee institution (a representative from CGCC) joined the panel discussion on “Roles of Credit Guarantee in Banking and Business Sector Development.” The panelists discussed the challenges, solutions, and recommendations to improve the effectiveness of using credit guarantees to support business sector development, especially the SMEs, which are the backbone of the economy.
CGCC provides credit guarantees on business loans disbursed by banks and microfinance institutions to support potential businesses that lack collateral. CGCC serves the Government’s policy to improve financial inclusion and develop SMEs in Cambodia. For more information, please contact CGCC via 023 722 123 or 016 242 033 or visit CGCC at www.cgcc.com.kh. Thank you.
Phnom Penh, Thursday, 18 August 2022
PRESS RELEASE CGCC Launches Co-Financing Guarantee Scheme for Tourism to support the Recovery and Growth of Tourism Sector
To support the Government’s policy on recovery and growth of the Tourism Sector, the Credit Guarantee Corporation of Cambodia (CGCC) is pleased to launch the “Co-Financing Guarantee Scheme for Tourism (CFGS-TR)” after the highest approval from H.E. Akka Pundit Sapheacha Deputy Prime Minister, Minister of Economy and Finance.
CFGS-TR is specifically designed to provide credit guarantees on co-financing loans disbursed by CGCC’s Participating Financial Institutions (PFIs) under the Tourism Recovery Co-Financing Scheme (TRCS) of the SME Bank of Cambodia.
CFGS-TR of CGCC and TRCS of SME Bank are the joint efforts of the two state-owned enterprises to improve access to finance for SMEs in the Tourism Sector. While TRCS aims to lower SMEs’ cost of borrowing, CFGS-TR is a guarantee scheme that will act as collateral/security for 80% of the loan amount; thus, reducing the physical collateral required from the borrowers. CFGS-TR will support new loan disbursements in the banking sector to SMEs. Meanwhile, PFIs will be able to offer higher loan amounts, and the risk exposure will be shared with CGCC up to 80%.
For more information, please contact CGCC via 023 722 123, or visit CGCC’s official website www.cgcc.com.kh.
Phnom Penh, 12 July 2022
Credit Guarantee Corporation of Cambodia
Announcement-CGCC’s New Office Relocation
Credit Guarantee Corporation of Cambodia (CGCC) is pleased to inform all institutions/organizations, banks, and micro-finance institutions that are the Participating Financial Institutions (PFIs) of CGCC and the public that effective from 01 April 2022, CGCC’s office is relocated to a new place, located at the Business Development Center, 19th Floor, Building S, OCIC Blvd, Sangkat Chroy Changvar, Khan Chroy Changvar, Phnom Penh.
CGCC’s new office location: https://goo.gl/maps/GG1sR2gDWK6DEUXo6
Should you have any inquiries, please contact CGCC via 023 722 123 or [email protected].
