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CGCC Provides $271M Loan Guarantees to SMEs

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $271 million for micro, small and medium-sized enterprises (MSMEs) as of February 2025 as their working capital for expansion.

“As of the end of February 2025, CGCC has approved 3,979 guaranteed accounts, amounting to $271.14 million,” CGCC said in a report issued last Thursday.

In February 2025, CGCC approved 547 guaranteed accounts, which is the highest number of guaranteed accounts approved in a month since CGCC started the credit guarantee services in 2021.

The outstanding guaranteed loan as of February was $156.69 million, while the outstanding guaranteed amount was $114.89 million, read the report.

There are 3,792 micro, small and medium enterprises (MSMEs) and 187 large businesses in Cambodia, the report said, adding that 1,834 of the businesses were women-owned.

No Lida, CEO of CGCC, said that credit guarantee mechanisms have helped in contributing to the potential MSMEs that need funds to expand their production chains.

“Small and medium-sized enterprises that have potential but lack collateral or a certain level of risk that banks and microfinance institutions cannot provide credit to, so the Cambodia government, through the CGCC, will step in to help guarantee the credit of small and medium-sized enterprises,” he said.

Through the Cambodian Credit Guarantee Corporation, which insures up to 80 percent of loans to small and medium-sized enterprises, the government expects that banks and microfinance institutions will be able to provide more loans according to the needs of small and medium-sized enterprises, he said.

The CGCC scheme involves participating financial institutions (PFIs) including state-run Agriculture and Rural Development Bank and SME Bank to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs. 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.

Credit to: Khmer Times, Published on 24 March 2025

 

Agreement Signing Ceremony on Post-Harvest Fisheries Guarantee Scheme Between CGCC and FTB Bank

Posted on by Sorn Chhorvyvatey

On 21 March 2025, Credit Guarantee Corporation of Cambodia (CGCC) and Foreign Trade Bank of Cambodia (FTB) co-organized an agreement signing ceremony on “Post-Harvest Fisheries Guarantee Scheme (PFGS)” with honorable attendance from Management and team of CGCC, FTB, and representatives of United Nations Industrial Development Organization (UNIDO Cambodia), to announce the official expanded partnership in providing guaranteed loans by CGCC through FTB to post-harvest fishery businesses and relevant suppliers.

PFGS is developed as a scheme for the Value Chain Investment Support Facility (ISF), a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project, jointly implemented by the Fisheries Administration and the UNIDO Cambodia, co-funded by the European Union, and having CGCC as the fund manager.  Post-harvest fisheries enterprises and relevant suppliers can apply for support from the ISF on Technical Assistance (TA) for upgrading business operations and improving food safety practices, ISF Grant funds to procure Eligible Equipment to introduce innovations and optimize the business operations, and business loans guaranteed by CGCC from Participating Financial Institutions (PFIs) of CGCC such as FTB that has entered in this agreement on PFGS with CGCC.

Mr. No Lida, Chief Executive Officer of CGCC, said, “CGCC is delighted to have FTB as a​ new Participating Financial Institution (PFI) in the Investment Support Facility (ISF) project. The participation of FTB will improve the efficient implementation of the ISF in response to the demand of the post-harvest fishery enterprises for access to financing support and guaranteed loans necessary to increase competitiveness, productivity, and standard of production of the potential post-harvest fishery enterprises in Cambodia.”

Mr. Dith Sochal, Chief Executive Officer of FTB Bank said “Our two institutions are committed to strengthening and expanding our collaboration with the shared goal of driving innovation, enhancing efficiency, and optimizing business operations for enterprises in the post-harvest fisheries sector, domestic suppliers, and exporters to international markets. This agreement also reflects the strong partnership and active engagement between FTB and CGCC since 2021, with the expectation of successful and sustained comprehensive cooperation between the two institutions.”

Through this PFGS agreement, CGCC and FTB are committed to supporting post-harvest fishery enterprises and input suppliers in increasing productivity, improving food safety compliance and quality standards of fishery products, reaching new markets, including international markets, and improving businesses in a more efficient, sustainable, and inclusive way.

For post-harvest fisheries enterprises, apply for ISF now! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

 

About FTB: As the first commercial bank in Cambodia, a truly local bank trusted since 1979, FTB has played crucial roles in helping to promote and develop the local market and economy through relentlessly providing wide ranges of banking products and services to local customers. As of 2024, the total assets increased to US$2.28 Billion, total loan portfolio of US$ 1.34 Billion and total deposit of over US$ 1.93 Billion. FTB is committed to continually helping local customers to achieve further growth, prosperity and steadily forging ahead with the vision to be the preferred commercial bank in Cambodia.

 

About CGCC: CGCC is a state-owned enterprise established by the Sub-Decree of the Royal Government of Cambodia in September 2020 under the technical and financial guidance of the Ministry of Economy and Finance (MEF). CGCC’s main mission is to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. As of the end of February 2025, CGCC approved 3,979 guaranteed accounts, amounting to 274.14 million USD equivalent.

 

 

CGCC, CAPFISH-Capture Expand Support for Fisheries Enterprises

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-Harvest Fisheries Development project have reached a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector.

According to a press release on Wednesday, the two organizations officially signed support agreements for 11 fish processing enterprises under the Investment Support Facility (ISF).

The ISF, a key initiative of the CAPFISH-Capture project funded by the European Union (EU), is administered by CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

This innovative financing scheme amounts to approximately $2.5 million, consisting of $1 million in grant funding (40 percent of the total investment) from the project for equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

Since its launch in late 2024, the ISF has supported an initial group of 11 fish processing enterprises, with more expected to benefit from the program.

So far, the project has provided around $320,000 in initial grant funding, leveraging an additional $340,000 in CGCC-guaranteed loans from PFIs such as ACLEDA Bank and Maybank Cambodia, along with $580,000 contributed by the enterprises themselves.

The ISF primarily supports post-harvest fisheries enterprises seeking to enhance their operations and expand their market reach both nationally and internationally. The program places a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards.

The program offers tailored support, including business development assistance, market linkages, food safety compliance, and adherence to environmental and social safeguards.

Credit to: Khmer Times, Published on 27 February 2025

 

Fish Processing Businesses Receive Funding Boost to Expand

Posted on by Sorn Chhorvyvatey

Small- and medium-sized fish processing enterprises are set to see their operations expand after an agreement was signed between the Credit Guarantee Corporation of Cambodia and CAPFISH-Capture.

Eleven fish processing enterprises are set to benefit from support agreements signed between the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development in a major milestone in promoting financial inclusion and growth in the post-harvest fisheries sector.

On February 21, 2025, the two organisations officially signed an agreement for 11 fish processing enterprises as part of the Investment Support Facility (ISF). The financing scheme totals approximately $2.5 million.

This comprises $1 million in grant funds (40 percent of total investment) from the project as equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

The ISF is an initiative under the CAPFISH-Capture project funded by the EU and administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

“Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support,” according to a statement.

“The project has provided its initial grant funding of around $320,000, leveraging an additional $340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with $580,000 from the enterprises themselves.”

The ISF has a primary focus on supporting post-harvest fisheries enterprises who are aiming to boost their operations and expand their market reach nationally and internationally. It has a strong emphasis on empowering businesses led by women, youth and people with disabilities.

Through the initiative, the CGCC and CAPFISH-Capture project aim to help eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For more information on the initiative and how post-harvest fisheries enterprises can apply for the funding through the CGCC website.

Credit to: KIRIPOST, Published on 26 February 2025

Investment Support Facility (ISF): CGCC, Participating Financial Institutions & EU-funded CAPFISH-Capture Team Up to Boost Investments in the Fisheries Sector

Posted on by Sorn Chhorvyvatey

Phnom Penh, 26 February 2025 – On February 21, 2025, the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development project celebrated a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector. They officially signed support agreements for 11 fish processing enterprises as part of the Investment Support Facility (ISF).

The ISF, a key initiative under the CAPFISH-Capture project funded by the European Union (EU), is administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA). This innovative financing scheme totals approximately US$2.5 million, comprising US$1 million in grant funds (40% of total investment) from the project as equipment support, US$1.25 million (50%) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and US$250,000 (10%) contributed by the beneficiaries themselves.

Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support. The project has provided its initial grant funding of around US$320,000, leveraging an additional US$340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with US$580,000 from the enterprises themselves.

The ISF focuses primarily on supporting post-harvest fisheries enterprises eager to enhance their operations and expand their market reach, both nationally and internationally. There is a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, the CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For post-harvest fisheries enterprises, APPLY NOW! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH

CGCC Internship Program 2025

Posted on by Sorn Chhorvyvatey

CGCC is thrilled to announce our newly established “CGCC Internship Program” where students/fresh graduates will gain hands-on experience, expose themselves in a professional setting and work alongside seasoned professionals from different departments in CGCC based on their skills and career aspirations.

Qualification Requirements:

  • University students in their 4th year/fresh graduates
  • Have strong educational and extra-curricular track records (transcripts required)
  • Good English proficiency
  • Strong communication, leadership skills and analytical capabilities
  • Able to work as a full-time intern (8h/day) for the period of at least 3 months
  • Willing to take the challenges to improve their creativity and initiatives

Interested candidates, please submit your application with supporting documents to

Email: [email protected]

For more information, please contact: 023 722 123

 

Meet the Business Owner Who Received a Loan Guaranteed by CGCC

Posted on by Sorn Chhorvyvatey

My dream is to invest in a business that can contribute to people’s well-being because good health and mental well-being are essential for a good quality of life. This is the main reason why my wife and I started two businesses, ADK Rice and Muny Clinic. I established ADK Rice company because I believe that rice is the a primary food for many people, and with the increasing population and decreasing agricultural land, ensuring a stable rice supply is crucial. My wife and I jointly established Muny Clinic with the vision of providing affordable and high-quality healthcare services.

Through my experience working for a large rice exporter in Cambodia, I became aware of the challenges faced by farmers in rural areas, so I decided to start retailing rice for local consumption, called Angkor Dey Khmer. In 2021, the business expanded and evolved into ADK Rice (Cambodia), a company that produces high-quality rice that complies with food safety standards and provides farmers with a sustainable market and increased their income by contract farming supply to my company. Muny Clinic is a medical care and treatment clinic that was established in 2018 by my wife and me. We are committed to providing quality and affordable healthcare services to Cambodians, with a particular focus on treating diabetes and offering regular health check-ups to prevent serious diseases.

The goal of doing business is to develop and grow. My clinic business is no different. We want to acquire modern medical equipment to enhance the clinic’s standards and grow our business. We have decided to apply for a loan from a bank to make our dreams a reality. However, we do not have enough collateral or land title to pledge with the bank. This challenge was overcome with the help of CGCC credit guarantees, which alleviated this challenge and enabled me to get a loan from Prince Bank to purchase clinical equipment.

I obtained a CGCC guarantee on my loan not by chance, but because of the knowledge I gained from participating in the CGCC Capacity Building Program called “EPIC” series 1 of 2024 in May 2024. Through EPIC, I learned about CGCC and partner banks that can provide loans to potential businesses with a clear business plan but face challenges due to  lack of collateral. After receiving the guaranteed loan, I purchased additional medical equipment for our new clinic building, which is in line with the purpose of that guaranteed loan, business plan, and investment plan. In addition, I also plan to apply for additional loans for working capital to buy paddy rice from farmers to increase the rice production of my AKD rice in the future.

As a business owner, I acknowledge that understanding financial literacy is very important because it allows us to think in detail about investing in all aspects, such as purchasing assets to generate more income rather than buying any non-income-generating assets. On the other hand, with financial literacy, we can effectively manage human resources by taking into account factors such as the number of employees, salaries, incentives, and benefits.

Read and Download in PDF: Meet the Business Owner Who Received a Loan Guaranteed by CGCC

 

Understanding Credit Guarantee-Interview with Participating Financial Institution (Prince Bank)

Posted on by Sorn Chhorvyvatey

1. What is Prince Bank’s perspective towards the credit guarantee schemes and why does Prince Bank partner with CGCC?

At Prince Bank, we have a clear vision of helping our customers achieve sustainable growth through comprehensive support and flexible lending options. Our strategic partnership with CGCC will bring us closer to this vision by providing entrepreneurs with better access to financing for their business expansion and growth, allowing them to operate with peace of mind. With our credit guarantee schemes, we firmly believe that our financial support will exceed our clients’ expectations.

2. How do the credit guarantee schemes benefit Prince Bank and your customers?

With the availability of credit guarantee schemes, both Prince Bank and its customers benefit from a reduced risk exposure for the bank and increased financing limits to meet business needs, regardless of the customers’ collateral availability.

3. So far, which type of loans does Prince Bank use the credit guarantees to support?

Since the inception of our partnership with CGCC, Prince Bank has utilized the credit guarantee to provide loans to customers as mentioned below:

  • Business Term Loan
  • Overdraft Loan
  • Trade Finance Facilities

4. How should the borrowers prepare themselves in order to get guaranteed loans from Prince Bank?

To borrow from Prince Bank, customers should diligently plan their business and determine their financial needs for growth. They can then consult with lending experts at any nearby Prince Bank branch for more information on available schemes. Once they have discussed and decided on a suitable scheme, they can submit a request to Prince Bank for further processing and approval based on its internal policy. CGCC will ultimately review this request for final approval on the proposed guaranteed scheme and amount, or Prince Bank will perform registration of the customer’s loan for CGCC’s guarantee after its internal approval.

5. What is the Prince Bank strategy/plan to further expand the disbursement of guaranteed loans in 2024 and also for the next year?

2024 was still a tough year for everyone, but Prince Bank is still open to lending to our customers, and we have spoken loud on our social media, website and newsagents on the availability of guaranteed schemes to help them if they don’t have sufficient collaterals for their borrowings. In 2025, we will continue our mission and commitment to provide financial support to our clients with a stronger collaboration with CGCC for existing and future suitable schemes.

Read and Download in PDF: Understanding Credit Guarantee-Interview with Participating Financial Institution (Prince Bank)

 

CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing

Posted on by Sorn Chhorvyvatey

On 23 January 2025, Ministry of Economy and Finance and Credit Guarantee Corporation of Cambodia (CGCC) co-organized the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing”, presided over by H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, high representative of H.E. Deputy Prime Minister, Minister of Economy and Finance, at Hyatt Regency Phnom Penh.

CGCC Annual Seminar was organized to wrap up and celebrate accomplishments, review the progress of public credit guarantee schemes, award top-performing financial institutions, and launch new public credit guarantee product, as well as collect inputs from related stakeholders​ on innovating credit guarantee mechanisms to support green finance and develop small and medium enterprises in Cambodia. Approximately, around 150 participants from public institutions, domestic and international development partners, banks and microfinance institutions, securities firms, business associations, and related stakeholders attended the seminar.

Through this Annual Seminar, H.E. Ros Seilava officially launched the “Wholesale Guarantee Scheme of CGCC”, to provide guarantees on existing business loans of Participating Financial Institutions (PFIs) to share risk with PFIs and reduce the risk weight on the part of the exposure that is guaranteed by CGCC. According to the Prakas Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions of the National Bank of Cambodia on 29 June 2023, exposures denominated in riel or currency that are clearly and unconditionally guaranteed by the Royal Government of Cambodia, including guarantees by credit guarantee schemes established by the Royal Government of Cambodia, are zero percent risk-weighted.

In addition, H.E. Ros Seilava granted the Ministry of Economy and Finance’s Outstanding Awards to participating financial institutions including Prince Bank, Sathapana Bank, Canadia Bank, LOLC Microfinance Institution, and ABA, that have disbursed the most guaranteed accounts and a Special Award to Phillip Bank for maintaining the best Asset Quality in Guaranteed Loans in 2024.

H.E. Ros Seilava mentioned “Ensuring sustainable socio-economic development and building resilience to climate change are strategic goals of the Royal Government of Cambodia, with a priority on increasing sustainable and green finance to increase financial flows towards green investment and the green economy, and promoting climate-resilient and low-carbon public investment, etc. Investing in climate change not only can bring financial returns, but also socio-economic benefits. Therefore, I encourage relevant parties to focus on cooperation with the Royal Government in examining the feasibility of developing financial products, designing and implementing projects, and developing support mechanisms to increase the provision of green finance in Cambodia.”

In this annual seminar, there were also the Signing Ceremony on Credit Guarantee Agreement between CGCC and 2 new Participating Financial Institutions (PFIs), the Small and Medium Enterprise Bank of Cambodia (SME Bank) and Shinhan bank (Cambodia), and the Signing Ceremony on Memorandum of Understanding (MoU) between CGCC and Cambodia Microfinance Association (CMA) to improve financial inclusion and the financial literacy for SMEs.

Another objectives of the CGCC annual seminar is to create a discussion platform for sharing knowledge and experiences through a panel discussion on “Innovation of Credit Guarantee to Promote Green Financing”, shared by Mr. Kittipong Buranasiri , representative of Thai Credit Guarantee (TCG), Ms. Lee Hyeok, representative of Korea Credit Guarantee Fund (KODIT), Mr. Mohamed Azman Mohamed Taufik, representative of Credit Guarantee Corporation of Malaysia (CGC), and Mr. Nhim Soriya, representative of CGCC, moderated by Mr. Shakeel Ahmad, Deputy Resident Representative of UNDP Cambodia.

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. CGCC has launched 5 individual guarantee schemes, 17 portfolio guarantee​ agreements, and bond guarantees, as well as the Entrepreneurship Program Initiative of CGCC (EPIC). As of 31 December 2024, after 4 years of operations, CGCC has approved credit guarantees on 3,139 accounts of business loans, amounting to USD 256.58 million across the country. Those businesses provide jobs for more than 30,000 employees.

Credit to: KIRIPOST, Published on 24 January 2025