CGCC

CGCC Participating in the 47th Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)

Mr. Wong Keet Loong, CEO of CGCC, led the CGCC’s team to participate in the 47th ADFIAP Annual Meeting from 15 to 17 May 2024, at Sofitel Phnom Penh, hosted by the Agricultural and Rural Development Bank (ARDB) of Cambodia.

The 47th ADFIAP Annual Meetings is attended by more than 400 participants from more than 40 countries who are ADFIAP members, representatives from developing partners, representatives from the private sector, and other relevant stakeholders to share experiences from the countries in the Asia Pacific under the topic “DFIs’ Role in Sustainable Finance Ecosystem: Cultivating a climate-smart and sustainable future”. CGCC also submitted an application to be a member of ADFIAP through this annual meeting as well.

 

Job Vacancy with CGCC – Head of Credit Management

Credit Guarantee Corporation of Cambodia Plc. (CGCC) is a state-owned enterprise established under the Ministry of Economy and Finance. CGCC was recently set up to improve financial inclusion and develop the growth of SMEs in Cambodia. It plays an important role in the economic development of the country.

We are expanding our team! Join us, If you want to be part of the team, CGCC is urgently seeking qualified candidate for the following position:

Head of Credit Management

1. Job Overview

Will be responsible for overseeing on credit evaluation, credit administration, claim management, Non-Performing Loan and recovery management, management of reporting, and operational credit documentation, supporting the development and enhancement of GMS (Guarantee Management System), managing team, and building a good relationship with PFI.

2. Key Responsibilities:

  • Assist Director of Centralized Operations (DCOP) in managing all aspects of centralized operations, including branch operations (if any) credit evaluation and credit administration, loan monitoring and recovery management, claim management, customer satisfaction, feedback management etc.
  • Assist the DCOP to be accountable for all credit evaluation and credit administration related matters e.g., ensure loan is approved within the provided Turn Around Time (TAT), manage claim request and proceed with claim settlement upon all term and conditions are fulfilled and accurate etc. and authorize all core systems data input (data amendments etc.)
  • Support and assist the DCOP on implementing operational matters of all CGCC’s credit guarantee schemes and bond guarantee to ensure the sustainability of CGCC’s product and service.
  • Assist the DCOP in supporting the development & enhancement of GMS (Guarantee Management System) and derive greater productivity and cost efficiency across all operational processes, including the review for process automation.
  • Assist the DCOP in management of reporting and operational credit documentation and periodic review on Portfolio Guarantee scheme (PGS).
  • Assist the DCOP to develop all credit management and loan monitoring related policies, standard operating procedures and framework and ensure the quality of credit documentation, specifically facility offer letters in line with the approved credit application, credit policies and procedures, prudential guidelines, and other relevant legislation.
  • Support and assist the DCOP to build and supervise a team of appropriate skills to assist him/her in carrying out his/her duties and ensure that they are trained accordingly.
  • Responsible for dealing with issues related to centralized operational matters with proper timeframe and building good relationships with PFIs.
  • Responsible for providing training to existing or new PFIs related to Guarantee Application Form (GAF) filing process and/or monthly report submission to ensure speed up the turnaround time.
  • Carry out any other duties and ad-hoc assignments assigned to him/her by the DCOP or Managements of the CGCC as and when required for CGCC.

3. Qualification Requirements

  • At least 5 years’ experience in the financial industry or banking sector related credit evaluation, credit admin, non-performing Loan, and recovery management.
  • Experience of managing team.
  • Bachelor’s degree in finance, business administration, or a related field
  • Proficiency in relevant software and systems.
  • Analytical and problem-solving skills
  • Attention to detail and accuracy.
  • Ability to work under pressure and meet targets.

$30M Credit Guarantee Scheme for Rice Inked

The state-owned Credit Guarantee Corporation of Cambodia (CGCC), Cambodia Rice Federation (CRF) and participating financial institutions (PFIs) signed an agreement on the $30 million Rice Export Guarantee Scheme (REGS) to help millers stockpile rice for milling, processing, exporting and making local value-added products.

The signing ceremony was held last Friday in the presence of Ros Seilava, Secretary of State of the Ministry of Economy and Finance, the Board of Directors of the CGCC and the management and members of CRF, PFIs and CGCC.

The official cooperation by the three parties on REGS is aimed at increasing the productivity and competitiveness of Cambodia’s rice industry and boosting rice exports in line with the Royal Government of Cambodia’s policy on agriculture.

CGCC launched REGS as a portfolio guarantee scheme, having seven financial institutions participating including AMK Microfinance Institution, Canadia Bank, Foreign Trade Bank of Cambodia (FTB), Maybank (Cambodia), Prince Bank, Sathapana Bank, and Wing Bank (Cambodia).

The scheme will address the financing needs of rice exporters and millers having no collateral to avail of loans from financial institutions, especially during the harvest season.

At the ceremony, Ros Seilava said that the launch of the project is a reflection of the government’s strong commitment to support Cambodian rice production and rice exports through the public credit guarantee scheme, of which CGCC is the operator, by providing guarantee coverage of 80 percent with a maximum loan of up to $3 million.

“The REGS will support the financing needs of rice exporters and rice millers to purchase paddy from farmers to produce rice for exports in line with the government’s policy to increase rice production and exports,” he said.

Chan Sokheang, President of CRF said the rice credit guarantee package will help millers expand their businesses and use the by-products to other sectors such as aquaculture and livestock farming.

“The guarantee package is also an additional incentive for expanding exports to one million tonne per year as set by the rice production policy of the Royal Government, and we believe that this plan will be achieved by 2025,” he added.

Wong Keet Loong, CEO of CGCC, said that the scheme comes with special features – lower guarantee fees, higher guarantee covers and loan interest rate not exceeding 11 percent a year.

“We are supporting the aspirations of the government to export one million tonne of rice by 2025. This is our first tranche for the scheme and we can increase the scheme size if there is higher demand,” Wang said.

Cambodia exported more than 248,000 tonnes of milled rice in the first four months of 2024, earning a total revenue of $170 million, a CRF report showed.

The exported rice varieties included fragrant rice, white rice, parboiled rice and organic rice, among others.

Credit to: Khmer Times, Published on 13 May 2024

Rice Credit Guarantee Scheme Inked to Boost Rice Productivity and Export

The state-owned Credit Guarantee Corporation of Cambodia (CGCC), Cambodia Rice Federation (CRF), and Participating Financial Institutions (PFIs) signed an agreement on the Rice Export Guarantee Scheme (REGS), which helps millers expand their scope to stockpile rice for milling, processing, exporting, and increasing local value-added products.

The signing ceremony was held on May 10 under the presidency of Ros Seilava, Secretary of State at the Ministry of Economy and Finance, with the participation of more than 70 people who are members of the CGCC Board of Directors, the management and members of CRF, the management and staff of PFIs, and CGCC.

The ceremony was held to seal the official cooperation between CGCC, CRF, and PFIs on the Rice Export Guarantee Scheme (REGS). The scheme aims to increase the productivity and competitiveness of Cambodia’s rice industry and boost rice exports in line with the Royal Government of Cambodia’s policy on agriculture.

CGCC launched the $30 million REGS as a portfolio guarantee scheme, with seven financial institutions participating, including AMK Microfinance Institution, Canadia Bank, Foreign Trade Bank of Cambodia (FTB), Maybank (Cambodia), Prince Bank, Sathapana Bank, and Wing Bank (Cambodia).

Speaking at the ceremony, Ros Seilava said that the launch of the $30 million REGS project reflects the Royal Government’s strong commitment to supporting Cambodian rice production and exports through the public credit guarantee scheme, of which CGCC is the operator. The scheme provides guarantee coverage of 80 percent on the maximum loan of up to $3 million.

“The REGS will support the financing need of rice exporters and rice millers to purchase paddy from farmers to produce rice for exports in line with the Royal Government of Cambodia’s policy to increase rice production and exports,” he said.

Chan Sokheang, President of CRF said the rice credit guarantee package will help millers expand their scope to stockpile rice for milling, processing, exporting, and increasing local value-added products derived from its by-products milling all rice to other sectors such as aquaculture, livestock farming.

According to Wong Keet Loong, CEO of CGCC, the scheme comes with special features – lower guarantee fees, higher guarantee covers and loan interest rate not exceeding 11 percent p.a.

“We are supporting the aspirations of the Royal Government of Cambodia to export 1 million tonnes of rice by 2025,” Wang said.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. AKP

Credit to: Khmer Times, Published on 11 May 2024

CGCC Provides $17M Credit Guarantees to MSMEs in Q1

The Credit Guarantee Corporation of Cambodia (CGCC) provided credit guarantees of nearly $17 million in the first quarter of this year to 49 micro, small and medium-sized enterprises (MSMEs) as their working capital for expansion.

“In the first quarter of January to March, we saw a positive trend in the issuance of guarantees. We recorded a 30 percent increase in guarantees issued from 166 (4th quarter of 2023) to 215 with the amount of guaranteed loans increasing by 8.5 percent to $ 16.8 million,” a CGCC report issued recently showed.

The first quarter figure brought total credit guarantees to $181 million as of the end of March, supporting 2,143 MSMEs since its service launched in 2021, read the report.

As of March, the outstanding guaranteed loan was US$121.32 million while the outstanding guaranteed amount was $87.63 million.

There are 1,988 micro, small and medium enterprises (MSMEs) and 155 large businesses in Cambodia, the report said, adding that 881 of the businesses were women-owned.

2024 marks the 4th year of operations for CGCC. CGCC is optimistic that the credit guarantee will continue its momentum to increase annually, its CEO KL Wang said.

“Our participating FIs are beginning to find importance in the guarantees as a form of risk sharing for supporting their loans to MSMEs. Also, with the recognition of guaranteed loans to be zero-risk weighted, it will improve the FIs capital adequacy ratios,” Wang said.

The CGCC scheme involves 28 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.

CGCC, operated under the technical and financial guidance of the Ministry of Economy and Finance, launched the first guarantee scheme on 29 March 2021.

CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.

In January this year, CGCC launched its guarantee for corporate bonds listed on the Cambodian Stock Exchange. This marks the diversification of our guarantees beyond bank loans to guarantee corporate bonds issued by larger-sized SMEs.

Credit to: Khmer Times, Published on 10 May 2024

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.

 

High-ticket Loans of $50,000 Issued as Credit Guarantee Scheme Kicks off

To boost startups and SME entrepreneurs, more high-ticket (above $50,000) loans without property collateral are now being issued by microfinance institutions (MFIs).

The main reason behind this is the take-off of the Credit Guarantee Corporation of Cambodia (CGCC) for SMEs. Normally, MFIs would only give small-ticket loans between $1,000-$3,000 without property collateral.

In the last decade, the higher the loan amount more would be the property collateral asked for. So looking at data from the fourth quarter of 2024 from the Cambodia Microfinance Association (CMA), for tier-1 loans less than $3,000 — 85 percent of these loans were issued without property backing it as collateral. Then for tier-2 loans between $3,001-$10,000 – 22 percent of loans were issued without collateral. And for tier-3 loans between $10,001-$50,000 – only 19 percent of such loans were issued without property collateral.

So far the data is following the expected trend as in past years. But if one were to look at tier-4 loans – which are above $50,000 – as high as 40 percent of loans were issued without property collateral.

And this is primarily because the CGCC in a bid to promote new ideas and new businesses has stepped forward to guarantee loans amounting to $164 million to 1,928 micro, small and medium enterprises (MSMEs) in the last three years. CGCC CEO KL Wong told Khmer Times that guaranteeing such loans has resulted in SMEs creating jobs. “The loans we’ve guaranteed have resulted in more than 52,000 new jobs in Cambodia from the SMEs we support,” he said.

Heng Bombakara, First Deputy Director General of Banking Supervision, National Bank of Cambodia (NBC), also said that the creation of CGCC is an acknowledgement of the vital role SMEs play in the economy. “SMEs represent 70 percent of employment opportunities in the country and contribute 58 percent to our country’s GDP. And these SMEs operate in diverse fields like agriculture, industry and services; and CGCC has been created to give a boost to this sector,” he said at a recent event.

Mindful of the diversity of SMEs in the country, CGCC guaranteed as much as 50 percent of loans for SMEs in services and trade, 3 percent from agriculture, 7 percent from industry and the remaining 40 percent to other miscellaneous SMEs.

CMA said that many of its members, including LOLC Microfinance and AMK Microfinance are participating financial institutions in the CGCC’s scheme. CGCC saw its highest loan guarantee activity in March 2022 – when it guaranteed as much as 91 businesses for $8.3 million in loan.

CGCC CEO Wong said that this pace of lending was maintained in 2023 where the state-owned enterprise guaranteed $72 million in loan amount for 943 accounts.

Credit to: Khmer Times, Published on 24 April 2024

CGCC Provides $181 Million Credit Guarantees to 2,143 Businesses as of March

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of US$181 million as of March this year to 2,143 businesses as their working capital for expansion.

In a factsheet issued on April 11, CGCC said as of March, the outstanding guaranteed loan was US$121.32 million while the outstanding guaranteed amount was $87.63 million.

There are 1,988 micro, small and medium enterprises (MSMEs) and 155 large businesses in Cambodia, the report said, adding that 881 of businesses were women-owned.

The CGCC scheme involves 27 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.

Smooth loan distribution has boosted entrepreneurship and financial inclusion, said Mey Vann, Secretary of State at the Ministry of Economy and Finance.

“The CGCC has played a key role in serving the needs of SMEs in Cambodia, which are struggling in the wake of the Covid-19 pandemic and the inflation crisis, and need credits from banks for their businesses,” he said.

Credit to: Khmer Times, Published on 13 April 2024

Job Vacancy with CGCC – Senior Manager/Manager of Business Development (Bond Guarantee)

Job Overview

The Senior Manager/Manager of Bond Guarantee Business of the Credit Guarantee Corporation of Cambodia (CGCC) will report to the Head of the Strategy and Business Development Department on CGCC’s bond guarantee matters.

Job Description

  • Assist the Head of the Strategy and Business Development Department in strategic planning to develop and execute CGCC’s bond guarantees.
  • Originate and structure new guaranteed bond transactions.
  • Process new CGCC-guaranteed bond transactions, including preparing documentation, conducting due diligence by collaborating with relevant CGCC departments, and seeking approval from CGCC’s management.
  • Oversee performance and monitoring of guaranteed bond and recommend any remedial actions.
  • Support and assist the Head of SBD on any bond guarantee-related matters involving ministries, regulators, and other public institutions.
  • Develop close working relationships with securities companies, potential issuers, and bond investors to expand CGCC’s bond guarantee opportunities.
  • Develop close working relationships with CGCC’s international partners regarding bond guarantees.
  • Perform any other roles and responsibilities as assigned by management periodically.

Qualification

  • A minimum of a master’s degree in economics, finance, business, or a related field.
  • At least five years of working experience in the banking or securities sectors, particularly in bond underwriting, credit operation, or risk management.
  • Strong analytical and strategic thinking skills.
  • Proven coordination, communication, interpersonal and diplomatic skills.
  • Ability to work effectively as a team with a sense of responsibility, flexibility, adaptability, and ability to learn and work under pressure.
  • Ability to prioritize tasks effectively, maintain timelines, and manage/plan workloads effectively.
  • Strong verbal and written communication skills in Khmer and English.
  • Competence in Microsoft Office Software.