Financial Inclusion Archives

CGCC and Bridge Bank Signed on Credit Guarantee Agreement to Support Businesses in Access to Guaranteed Loans

Posted on February 7, 2024 by Sorn Chhorvyvatey

On 07 February 2024, Credit Guarantee Corporation of Cambodia (CGCC) and Bridge Bank officially announced the partnership in the signing ceremony on the Credit Guarantee Agreement to provide support to micro, small, and medium enterprises (MSMEs) and large enterprises, in easier access to bank’s loans with CGCC’s Guarantee for business development.

The partnership between CGCC, a state-owned enterprise, under the financial and technical guidance of the Ministry of Economy and Finance, and Bridge Bank, a commercial bank with a commitment to support the local MSMEs, will enable Bridge Bank to expand the opportunity to be confident in providing the loans to financially viable businesses but lack of collaterals, by using credit guarantees of CGCC.

Mr. Wong Keet Loong, Chief Executive Officer of CGCC said: “This partnership with Bridge Bank opens up a new channel for us to reach out to support the Bank’s SMEs in getting loans when they lack collateral. Our participating FIs will evaluate the eligibility of SMEs for guaranteed loans as they know the financial needs and repayment capability of the borrowers. Our guarantees are vital to ensure the continuous supply of credit into the market to support more economic activities.”

Mr. Richard Liew, CEO of Bridge Bank said: “SMEs are one of the backbones of Cambodia’s economy, contributing significantly to the country’s GDP growth as well as providing employment opportunities to all Cambodians. However, some of these businesses often face challenges in accessing financing to support their growth. That is where this partnership between Bridge Bank and CGCC comes in. Through this MoU, we hope to provide MSMEs with easier access to loans by leveraging CGCC’s expertise in credit guarantee services. This will help to mitigate the risk of default and enable us to offer more competitive loan rates, thus increasing the affordability of credit for MSMEs.”

Through this agreement, Bridge Bank has now become one of the 28 Participating Financial Institutions (PFIs) of CGCC, committing to assisting business entities in line with the Government’s direction to support MSMEs. CGCC and Bridge Bank strongly believe that this partnership will be one of the key instrumental in addressing the financing gap faced by many MSMEs and will contribute to the growth and development of the country’s economy.

About CGCC

CGCC is the only credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia. Visit CGCC’s website for more information: www.cgcc.com.kh

About Bridge Bank

Bridge Bank provides a comprehensive range of banking products, such as loan services including home, automotive, personal, and business loans, as well as deposit services, payroll and remittance services.

Bridge Bank’s vision and mission are “to be your preferred financial partner of today and generations to come,” and “to provide financial services you can trust through our global service standards, making banking simple and secure.”

Please visit us for more details via www.bridgebank.com.kh

Courtesy Visit by CGCC to Kasikornbank in Thailand

Posted on December 1, 2023December 12, 2023 by Sorn Chhorvyvatey

On 01 December 2023 in Bangkok, Thailand, CGCC’s delegation, led H.E. Dr. Mey Vann, Secretary of State of the Ministry of Economy and Finance and Chairman of the Board’s Risk Management Committee of CGCC, paid a courtesy visit to the Kasikornbank (KBank) Public Company Limited based in Thailand, highly represented by Mr. Suwat Techawatanawana, Executive Vice President of KBank in Thailand, at the KBank’s Building in Bangkok, Thailand, with the participation from the management of KBank in Thailand and Phnom Penh Branch, which in one of CGCC’s PFI.

Courtesy Visit by CGCC to Kasikornbank in Thailand

H.E. Dr. Secretary of State expressed his appreciation for the warm welcome of the management of KBank Thailand, and also exchanged views about the economic situation in Cambodia and Thailand, and H.E. raised on the collaboration between CGCC and the Branch of Kasikornbank (Phnom Penh), which recently became one of CGCC’s PFIs in 2023.

In response, Mr. Executive Vice President of KBank Thailand expressed gratitude and appreciation for the courtesy visit of CGCC’s delegation, and especially shared with CGCC the progress of KBank as well as the experience of providing loans guaranteed by Thai Credit Guarantee Corporation in Thailand.

This courtesy visit provided such a great opportunity for both CGCC and KBank for a mutual understanding of the current economic situation in both countries, especially for strengthening the collaboration between both institutions for the like-minded vision in supporting MSMEs.

CGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed Loans

Posted on October 2, 2023October 5, 2023 by Sorn Chhorvyvatey

On 29 September 2023, Credit Guarantee Corporation of Cambodia (CGCC) and the Branch of Kasikornbank Public Company Limited (Phnom Penh) signed the Credit Guarantee Agreement. The Signing Ceremony was held at CGCC’s office with the honorable presence of H.E. Ros Seileva, Secretary of State of the Ministry of Economy and Finance, and Chairman of CGCC, H.E. Cherdkiat Atthakor, Ambassador of Thailand to Cambodia, and Mr. Suwat Techawatanawana, Executive Vice President of Kasikornbank Thailand.

CGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed Loans

Mr. Wong Keet Loong, Chief Executive Officer of CGCC, said: “We are very honored to have this partnership with a leading bank of Thailand to offer credit guarantees to support their MSME financing in Cambodia. The bank branch here can tap on their experience in Thailand, where the banking sector is very experienced in providing guaranteed loans. With this experience, we hope the bank will extend guaranteed financing to benefit Cambodian-owned businesses.

This collaboration also opens up opportunities for us to explore cross-border guarantees between businesses in Thailand and Cambodia. We have plans to understudy and collaborate with the Thai Credit Guarantee Corp, which has more than 30 years of experience, towards the end of this year.”

Mr. Ritthiwut Watthanachai, General Manager of the Branch of Kasikornbank (Phnom Penh), said: “Cambodia is at the center of Kasikornbank’s regional expansion strategy. This initiative seamlessly aligns with our business plan for the next phase, which we aim to leverage our experience in supporting small and medium-sized businesses in Thailand and replicate a similar model to serve local Cambodian SMEs. The partnership with CGCC will be the key enabler for us in extending our reach to a broader entrepreneur base, while improving our service capabilities. As the first Thai bank who joins the credit guarantee scheme, this partnership underlines Kasikornbank’s aspiration and commitment in supporting the Government’s vision for SME development.”

CGCC aims to improve financial inclusion and develop MSMEs with the main mission of providing guarantees for loans through Participating Financial Institutions (PFIs) to MSMEs. Meanwhile, the Branch of Kasikorn Bank (Phnom Penh) is a foreign bank branch of Kasikornbank Public Company Limited, known as KBank, one of Thailand’s leading financial institutions. The branch provides a wide range of financial services and solutions to individuals and businesses.

With a strong presence in Cambodia, the Branch of Kasikornbank (Phnom Penh) has now become one of the 27 Participating Financial Institutions (PFIs) of CGCC, committing to assisting business entities in line with the Government’s direction to support MSMEs. CGCC and Kasikornbank are confident that this partnership will help to address the financing gap faced by many MSMEs in Cambodia and contribute to the growth and development of the country’s economy.

About CGCC

About Branch of Kasikornbank Public Company Limited (Phnom Penh)

The Branch of Kasikornbank Public Company Limited (Phnom Penh) was granted the commercial banking license by National Bank of Cambodia in November 2016. The initial registered capital was MUSD 50, which has been increased to MUSD 80 as of 2023. As an integral of Kasikornbank, the branch aims to provide best in class financial products and services to both local and foreign business in Cambodia. Given Kasikornbank’s presences in China, Indonesia, Vietnam, Lao PDR, and Thailand, the branch also focuses on connecting customers from across the region.

CGCC gets Honorable Mention in Global Finance SME Award 2023

Posted on September 26, 2023October 16, 2023 by Sorn Chhorvyvatey

Credit Guarantee Corporation of Cambodia (CGCC), a state-owned enterprise under the Ministry of Economy and Finance was established in November 2020. Since it started operations in March 2021, CGCC has launched several credit guarantee products to support loans extended to MSMEs through its participating Financial Institutions (PFIs). With CGCC’s credit guarantee, it has brought a positive impact on the economic activities of MSMEs with credit additionality of approximately USD145mil guaranteed loans. CGCC has supported financing to about 1,700 MSMEs who provide jobs to more than 27,000 workers.

The impact of CGCC has been steadily growing. Many PFIs are seeing the benefits of providing guaranteed loans as a risk-sharing mechanism and for capital management purposes, as guaranteed loans will carry a zero-risk weight from 2024 onwards. With the support of CGCC, PFIs will be able to extend more credit to business entrepreneurs.

The accomplishments of CGCC have been recognised by the SME Finance Forum with an Honorable Mention in the “Product Innovation of the Year” category of the Global SME Finance Awards 2023. The awards presentation was held in Mumbai recently, endorsed by the G20’s Global Partnership for Financial Inclusion (GPFI), capturing the effective and successful practices of institutions, honouring the innovative products and services for SME clients that have achieved impressive results in expanding finance and services to SMEs and the institutions that undertake those efforts.

Wong Keet Loong, CEO of CGCC, commented “We are honoured to receive this recognition for the work we have done at CGCC. This achievement is testament to our part in supporting MSMEs in getting loans to grow their business”. He added that “this award is dedicated to all CGCC staff who have been committed to being part of a state-owned enterprise to play a role in supporting the growth of MSMEs and nation building. My salute to them for their passion and dedication and I hope that this recognition will continue to inspire them to excel further”.

CGCC has been recently accredited by SERC to be Cambodia’s first bond guarantee institution. With that, CGCC is now able to support all segments of businesses from small to large enterprises in obtaining financing. The credit guarantee is an effective financial tool to improve financial inclusion.

Credit to: Khmer Times, Publish on 26 September 2023

CGCC visits PFIs provincial branches in Kampong Chnang, Pursat, Battambang & Pailin to Enhance Collaboration on the Credit Guarantee

Posted on September 19, 2023October 16, 2023 by Sorn Chhorvyvatey

From 11 September to 14 September 2023, CGCC team led by Mr. Hor Saopiseth, Manager of Centralized Operations of CGCC, visited provincial branches of selected participating financial institutions (PFIs) to discuss with the management and staff of the selected PFIs the implementation of CGCC’s credit guarantee schemes. The selected PFIs in 4 provinces including:

– Kampong Chnang province: ABA Bank and Chamroeun Microfinance

– Pursat province: Prince Bank, Canadia Bank and Chamroeun Microfinance.

– Battambang Province: Prince Bank, FTB Bank, and Maybank

– Pailin Province: LOLC Microfinance, Phillip Bank and ABA Bank.

The discussions with CGCC PFIs’ provincial branches in these 4 potential provinces provided opportunities for both CGCC and PFIs to enhance mutual understanding of credit guarantees and opportunities for PFIs to increase lending to borrowers that lack collateral when requesting loans.

CGCC visits PFIs provincial branches in Kampong Chnang, Pursat, Battambang & Pailin to Enhance Collaboration on the Credit Guarantee

CGCC accredited as Cambodia’s first bond issuance guarantor

Posted on September 11, 2023October 18, 2023 by Sorn Chhorvyvatey

The Securities and Exchange Regulator of Cambodia (SERC) under the Non-Bank Financial Services Authority (FSA) of the Ministry of Economy and Finance (MEF) has accredited the state-owned Credit Guarantee Corporation of Cambodia (CGCC) as the country’s first guarantor for bond issuance to support local companies in raising funds, said a statement.

The statement obtained by Khmer Times last Friday pointed out that the SERC issued a formal letter to accredit CGCC as Cambodia’s first bond issuance guarantor on August 22, 2023, which will play an important role in the development of the securities sector in the country through being a third party in making payments of timely interest and principal.

CGCC has developed a policy framework on bond guarantee that was approved by Deputy Prime Minister and Minister of MEF Aun Pornmoniroth on May 17, 2023, in response to the sustainable development of Cambodia’s financial market through the company’s delivering guarantee on bond issuance services to corporations to raise funds for business development.

“The guarantee on bond issuance service can provide further support to encourage bond issuance by local companies, attract investors to invest in corporate bonds, increase the liquidity of riel from the bond issuance and improve the credit rating of corporate bonds, in which response to the sustainable development of the financial market,” said the statement.

Sou Socheat, Director General of SERC, told Khmer Times last Friday that accrediting the CGCC as a guarantor is another milestone for our bond market development and the presence of CGCC in the securities market is expected to help to boost the bond market development in Cambodia through building more market confidence and lower the issuance cost.

“As for our regulation, we cover only corporate bonds but we also don’t prohibit [the guarantor] from guaranteeing the government bonds,” said Socheat, when asked whether CGCC or a bond guarantor can guarantee government bonds or not. “So, it should be their answer if they want to provide guarantee to government bond,” Socheat pointed out.

Wong Keet Loong, CEO of CGCC, said that CGCC has become the first bond guarantee institution in Cambodia to corporate bonds listed on the country’s stock market Cambodia Securities Exchange (CSX), which is a step towards developing the bond market in Cambodia and the company will apply for a credit rating from the Rating Agency of Cambodia.

“Private sector businesses can now raise funds via issuing a bond to support their business expansions [as] bond issuance is another option for private sector companies to obtain funds besides loans from financial institutions,” said Keet Loong, adding that a credit rating will enhance the bond rating of the corporate bond that is guaranteed by CGCC as the guarantor.

“With our guarantee, bond investors will have added confidence in investing in corporate bonds. Local financial institutions including insurance companies can now become bond investors with guarantees. As a local bond guarantor, we hope to attract more foreign funds to the stock exchange,” said Keet Loon. CGCC gets technical and financial support from MEF.

Ros Seilava, Secretary of State of MEF, said allowing CGCC to expand its business to bond guarantee is a long-term consideration of the government to make full use of CGCC’s role to participate in the development of the bond market through guarantee on bond issuance in addition to CGCC’s on-going implementation on loan guarantee in the banking sector.

“[It] reflects the government’s strong commitment to ensure the sustainability of the company’s businesses to support the development of small and medium enterprises in our country,” said Seilava, who is also the chairman of CGCC with its primary mission to provide credit guarantee to improve financial inclusion and support the growth of SMEs in Cambodia.

Credit to: Khmer Times

Signing MoU on Strategic Partnership to Support Small and Medium Enterprises in Access to Guaranteed Loans Between CGCC, FASMEC, and Wing Bank

Posted on August 23, 2023October 18, 2023 by Sorn Chhorvyvatey

On Aug 22, 2023, Credit Guarantee Corporation of Cambodia (CGCC), Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC), and Wing Bank have entered into a strategic partnership to promote access to guaranteed loans for the development of Small and Medium Enterprises (SMEs) in Cambodia. This cooperation will provide support to SMEs, mainly FASMEC’s members, for greater access to finance despite collateral challenges and to promote financial literacy, including credit guarantees to FASMEC members across the country.

Signing MoU on Strategic Partnership to Support Small and Medium Enterprises in Access to Guaranteed Loans Between CGCC, FASMEC, and Wing Bank

The MoU Signing Ceremony is held at Wing Bank Head Office, presided by Mr. Wong Keet Loong, Chief Executive Officer of CGCC, Okhna Te Taing Por, President of FASMEC, and Mr. Han Peng Kwang, CEO of Wing Bank.

Mr. Wong Keet Loong, CEO of CGCC said, “We are excited to be a partner with Wing Bank and FASMEC this year in order to support FASMEC’s SME members to increase their access to loans with Wing Bank supported by guarantees from CGCC. Also, we believe that this partnership will enable CGCC to reach out to more SMEs during our outreach programs when we carry out workshops on SME development throughout the provinces, which is part of our long-term goals at CGCC to improve the growth of SMEs”.

Okhna Te Taing Por, President of FASMEC, said, “We are delighted to collaborate with Wing Bank and Credit Guarantee Corporation of Cambodia (CGCC) because it provides an opportunity for FASMEC member SMEs who lack collateral in finance to expand and grow their business.”

Mr. Han Peng Kwang, CEO of Wing Bank, said, “Through our innovative financial solutions and partnership with CGCC and FASMEC, we are committed to empowering SMEs with greater access to finance,” said Han Peng Kwang, CEO of Wing Bank. “By providing flexible banking services and credit support, we are enabling SMEs to seize growth opportunities, drive innovation, and contribute to the overall prosperity of Cambodia.”

This partnership between CGCC, FASMEC, and Wing Bank demonstrates a shared commitment to promoting economic growth and development in Cambodia. By working together, the three organizations will help SMEs overcome financing challenges and unlock their potential including improving financial literacy to drive economic growth in the country.

About CGCC

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. For more info, please visit: www.cgcc.com.kh

About FASMEC

FASMEC is a federation formed by a group of associations and small and medium enterprises in Cambodia, established and registered by the Ministry of Interior in 2010. FASMEC’s vision is to connect Cambodian small and medium-sized enterprises to local and international markets. FASMEC’s mission is to bring together Cambodian small and medium-sized businesses and collaborate to ensure that the quality of Cambodian products is recognized internationally. Aims to improve the business environment by developing training courses, increasing productivity and innovation, and challenging the challenges of small and medium-sized businesses.

About Wing Bank

Wing Bank (Cambodia) Plc – the bank for every Cambodian – is driven by the vision to provide every Cambodian with convenient access to financial services relevant to, and for the improvement of, their daily lives since 2008. Today, Wing Bank serves the entire Cambodian population with 100% coverage of the districts in Cambodia thanks to the innovative Wing Money App, more than 11,000 Wing Cash Xpress agents, over 150,000 merchants, and partnerships with industry giants such as Mastercard, MoneyGram, AliPay, WeChat Pay, Western Union, Visa, and Ria. Wing Bank provides an array of advanced financial products both for individual and corporate customers. These include loans, deposits, micro-savings, credit referral services, money transfers, utility and insurance payments, supply chain payments, payroll services and even phone top-ups. Wing Bank is committed to providing financial, gender and digital inclusion to the unbanked and the under-banked, allowing every Cambodian to enjoy convenience and security when it comes to financial services.

CGCC Participated in the 35th Asian Credit Supplementation Institution Confederation (ACSIC) Conference in Mongolia

Posted on August 21, 2023October 19, 2023 by Sorn Chhorvyvatey

On 7 to 11 August 2023, CGCC Delegation, led by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance (MEF), and Chairman of CGCC, attended the 35^th ACSIC Conference in Ulaanbaatar, Mongolia, hosted by Credit Guarantee Fund of Mongolia (CGFM), under the theme “Looking ahead: fostering green financing for sustainable development”.

CGCC Participated in the 35th Asian Credit Supplementation Institution Confederation (ACSIC) Conference in Mongolia

During the conference, H.E. Chairman of CGCC gave a warm greeting remark to all the participants on credit guarantee mechanism, as a supplement to the sustainable financial state in Cambodia.

Moreover, Mr. KL Wong, CEO of CGCC, was also invited as a speaker to the panel discussion on “Design, Implementation and Monitoring: The Role of Credit Guarantee Schemes in Addressing the Perceived Higher Risks Associated with Green Finance Investments”. In this panel discussion, Mr. KL Wong shared the progress of CGCC in developing a guarantee scheme to support green financing for sustainable development by collaborating with various government ministries and development agencies in supporting the country’s commitment to participate in reducing GHG emissions by about

Through this conference, delegates from members/observers also got the chance to share and exchange their respective views on respective topics around green financing for sustainable development through expert insight discussions, plenary discussions, fireside chats, panel discussions, and keynotes, in which to bring the solidarity effort toward building and developing the green financing, a key driver of positive change, as it’s not just relevant but vital in the face of current environmental challenges.

The 35^th ACSIC conference was participated by approximately 120 delegates representing members/observers of ACSIC from 13 countries in Asia including Cambodia, Indonesia, India, Japan, Korea, Malaysia, Mongolia, Nepal, Papua New Guinea, Philippines, Sri Lanka, Taiwan, and Thailand.

ACSIC is the cooperation of largest Asia’s credit guarantee organization established in 1987, designed to improve the credit guarantee system, which currently is participated by 19 credit institutions of 13 Asian countries.

CGCC Provides Guarantee Management System “GMS” Sharing and Training Sessions to Participating Financial Institutions (PFIs)

Posted on August 17, 2023October 26, 2023 by Sorn Chhorvyvatey

CGCC has developed the very first Guarantee System which is under the name of Guarantee Management System “GMS” that allows all Participating Financial Institutions (PFIs) to submit all requests especially Guarantee Application processes and other transactions to CGCC through digitalization.

The GMS provides automation and streamlining to support all users by reducing the manual works for PFIs and CGCC giving the accessibility and coordination to provide Guarantee Loans fast with accuracy and security to PFIs.

CGCC has conducted training sessions about the system within 7 weeks which were starting from 05^th July 2023 until 10^th August 2023 at CGCC Office to 21 PFIs by having attendees in total of 80 management & staff from the PFIs.

CGCC Provides Guarantee Management System "GMS" Sharing and Training Sessions to Participating Financial Institutions (PFIs) — CGCC Provides Guarantee Management System “GMS” Sharing and Training Sessions to Participating Financial Institutions (PFIs)

Click here to learn more about: Dissemination Seminar on “Guaranteed Loans to Support the Development of Small and Medium Enterprises” in Pailin Province

CGCC Participated in the 31st Asian Credit Supplementation Institution Confederation (ACSIC) Training Program

Posted on July 28, 2023October 19, 2023 by Sorn Chhorvyvatey

Mr. No Lida, Deputy CEO of CGCC, led CGCC’s delegation to attend the 31^st ACSIC Training Program in Jakarta, Indonesia, hosted by the Indonesia Guarantee Corporation Association (ASIPPINDO), and presented about Cambodia’s Credit Guarantee Schemes under the theme “Building a Resilient Future: Enabling Sustainable Credit Supplementation.”

CGCC Participated in the 31st Asian Credit Supplementation Institution Confederation (ACSIC) Training Program

This training program was participated by approximately 60 delegates representing members/observers of ACSIC from 12 countries in Asia including Cambodia, Indonesia, India, Japan, Korea, Malaysia, Mongolia, Nepal, Papua New Guinea, Philippines, Taiwan, and Thailand.

Through this training program, each member and observer of ACSIC was given an opportunity to share their respective credit guarantee regarding their institutions’ background, law and regulation, schemes/products, procedure, and mechanisms, especially credit guarantee schemes to support Environmental, Social, and Governance (ESG). Beyond credit guarantee, CGCC and other delegates also shared the commitment and effort in improving financial literacy for MSMEs through capacity-building programs.

ACSIC is the cooperation of the largest Asia’s credit guarantee organization established in 1987, designed for improving the credit guarantee system, which currently has 19 members and observers from 13 Asian countries.

Tag: Financial Inclusion

CGCC and Bridge Bank Signed on Credit Guarantee Agreement to Support Businesses in Access to Guaranteed Loans

Courtesy Visit by CGCC to Kasikornbank in Thailand

CGCC and the Branch of Kasikornbank Public Company Limited (Phnom Penh) Signed on Credit Guarantee Agreement to support Cambodian MSMEs to Access to Guaranteed Loans

CGCC gets Honorable Mention in Global Finance SME Award 2023

CGCC visits PFIs provincial branches in Kampong Chnang, Pursat, Battambang & Pailin to Enhance Collaboration on the Credit Guarantee

CGCC accredited as Cambodia’s first bond issuance guarantor

Signing MoU on Strategic Partnership to Support Small and Medium Enterprises in Access to Guaranteed Loans Between CGCC, FASMEC, and Wing Bank

CGCC Participated in the 35th Asian Credit Supplementation Institution Confederation (ACSIC) Conference in Mongolia

CGCC Provides Guarantee Management System “GMS” Sharing and Training Sessions to Participating Financial Institutions (PFIs)

CGCC Participated in the 31st Asian Credit Supplementation Institution Confederation (ACSIC) Training Program

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