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CGCC Unveils $200M Economic Stimulus Guarantee Scheme

Posted on by Sorn Chhorvyvatey

Synopsis: The scheme is in line with the Royal Government’s Pentagonal Strategy – Phase 1, focusing on economic diversification, financial inclusivity, and private sector development.

In a major move to support Micro, Small and Medium Enterprises (MSMEs) and large firms in securing much-needed financing, the Credit Guarantee Corporation of Cambodia (CGCC) has launched a $200 million Economic Stimulus Guarantee Scheme (ESGS). The scheme took effect on July 1, following the conclusion of the Business Recovery Guarantee Scheme (BRGS), which expired on June 30.

In a statement released on Monday, CGCC said that the ESGS was approved by Deputy Prime Minister and Minister of Economy and Finance and is designed to support MSMEs and large firms in securing much-needed financing. Under the new scheme, CGCC has increased its guarantee coverage to as much as 90 percent of the total loan principal. The minimum guarantee fee has been lowered to just 0.75 percent of the outstanding guaranteed amount, alongside other favourable conditions to encourage greater loan disbursement from Participating Financial Institutions (PFIs).

The scheme is in line with the Royal Government’s Pentagonal Strategy – Phase 1, focusing on economic diversification, financial inclusivity, and private sector development. “As a state-owned enterprise under the Ministry of Economy and Finance, CGCC is committed to promoting financial inclusion and supporting enterprise development,” the statement said.

CGCC currently provides a range of credit guarantee products, including loan guarantees in the banking sector, bond guarantees in the securities market, and the Entrepreneurship Program Initiative of CGCC (EPIC).

Tech noted that while the government has introduced a range of support measures for SMEs—such as tax relief, capacity-building programmes, and social protection services—CGCC has played a distinct and crucial role by providing credit guarantees to businesses that lack collateral. With ongoing disruptions at the Cambodia-Thailand border affecting the flow of goods, he said there is an even greater need to strengthen the domestic SME sector. “Some SMEs have already used CGCC-backed loans to expand successfully. We need to build on that momentum and make sure more businesses can access this support.”

However, he added that effective implementation requires close collaboration between CGCC and the SMEs. “It’s important for CGCC to work with businesses that are applying for guarantees to ensure they have clear and realistic business plans. This will help ensure the sustainability of the loans and reduce the risk of default.”

Tech also urged CGCC to consider ways to ease the financial pressure on SMEs by lowering interest rates. “Currently, the interest rates under the guarantee scheme are still similar to what banks charge. If CGCC can work with lending institutions to reduce these rates, it would make a big difference for small businesses trying to recover and grow.”

He concluded that CGCC’s role will remain vital in the years ahead as Cambodia looks to build a more resilient and self-sustaining economy led by a strong SME sector.

CGCC continues to strengthen its role in enhancing access to finance for micro, small, and medium enterprises (MSMEs), particularly those with limited collateral or facing credit constraints.

No Lida, CEO of CGCC, said recently that the credit guarantee scheme has become an effective mechanism to support high-potential enterprises in expanding their operations. “Small and medium-sized enterprises with strong potential often face difficulties securing loans due to a lack of collateral or perceived risks. To address this, the government, through CGCC, provides credit guarantees to enable these businesses to access financing,” he said.

Through its guarantee schemes, CGCC covers up to 80 percent of the loan amount, giving banks and microfinance institutions the confidence to extend credit to SMEs in need of working capital or investment for business expansion. The scheme is implemented in partnership with PFIs, including the state-run Agriculture and Rural Development Bank and SME Bank, to channel credit to viable enterprises across various sectors.

Established in November 2020, CGCC serves as Cambodia’s official credit guarantee institution. Its mission is to promote financial inclusion, support the development of the SME sector, and contribute to economic growth. The guarantee schemes have helped enterprises seize investment opportunities, create jobs, and improve incomes nationwide.

Credit to: Khmer Times, Published on 02 July 2025

 

Credit Guarantee Corporation of Cambodia Launches $200M Stimulus Scheme Offering Up to 90% Loan Coverage for Businesses

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Credit Guarantee Corporation of Cambodia (CGCC) has officially launched a new USD 200 million “Economic Stimulus Guarantee Scheme” (ESGS), marking a significant milestone in the country’s post-pandemic financial recovery and private sector development efforts. Effective from July 1, 2025, ESGS replaces the earlier “Business Recovery Guarantee Scheme” (BRGS), which concluded on June 30, 2025.

Approved by H.E. Deputy Prime Minister and Minister of Economy and Finance, the new guarantee scheme is designed to boost access to finance for Micro, Small, and Medium Enterprises (MSMEs) as well as large firms, reinforcing the Royal Government of Cambodia’s Pentagon Strategy – Phase 1, which prioritizes economic diversification, job creation, and resilience.

Stronger Terms to Drive Loan Disbursement

One of the standout features of the ESGS is its enhanced guarantee terms. CGCC has increased the maximum guarantee coverage to 90% of the total loan principal, one of the highest ratios offered in the Cambodian market to date. The minimum guarantee fee has also been lowered to just 0.75% of the outstanding guaranteed amount, creating a more favorable cost environment for borrowers and lenders alike.

Read More: Guarantco and CGCC Sign Framework Agreement and First Transaction Together To Accelerate Sustainable Infrastructure Investment In Cambodia

These measures are aimed at encouraging Participating Financial Institutions (PFIs) to disburse more credit, especially to businesses with limited collateral or track records, while minimizing the risk exposure for lenders. Other improved conditions under ESGS are expected to attract a broader range of enterprises and stimulate economic activity across both urban and rural areas.

Focused Support for Key Sectors

The ESGS specifically targets businesses operating in priority sectors critical to Cambodia’s development. These include:

  • Agriculture: crop cultivation, livestock farming, aquaculture
  • Industry: agro-processing, food manufacturing, waste recycling, pharmaceutical production, and green technology
  • Services: tourism, logistics, digital services, education, utilities, and healthcare

Businesses outside these areas are still eligible, provided they do not fall under the officially designated “Negative List,” which outlines excluded sectors and loan purposes.

Eligible borrowers must be Cambodian citizens or majority Cambodian-owned legal entities (holding over 50% local ownership). Businesses that are not yet formally registered may still apply, but must complete registration within one year of receiving the guarantee. Otherwise, a business registration fee of 0.5% per annum will apply on the outstanding guaranteed amount.

Building on a Growing Track Record

The launch of ESGS comes as CGCC continues to expand its role in Cambodia’s financial system. As of the end of May 2025, CGCC had approved guarantees for 4,877 business loans, representing a total guaranteed amount of approximately USD 294.32 million.

CGCC, a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance, was established to enhance financial inclusion by reducing barriers to credit access. The corporation’s broader portfolio includes:

  • Loan guarantees in the banking and financial services sector
  • Bond guarantees in the securities market
  • The Entrepreneurship Program Initiative of CGCC (EPIC), which supports startup and SME development through tailored guarantees and advisory support

By rolling out ESGS, CGCC aims to further scale up these efforts and accelerate Cambodia’s journey toward a more inclusive, diversified, and resilient economy.

For more information about ESGS and eligibility criteria, visit www.cgcc.com.kh or contact CGCC directly at 023 722 123.

Credit To: Cambodia Investment Review, Published on 01 July 2025

 

Signing Tripartite MoU between CGCC, SME Bank, and FASMEC on Cooperation to Provide Guaranteed Loan to FASMEC Members

Posted on by Sorn Chhorvyvatey

On 16 June 2025, at the office of Federation of Associations for Small and Medium Enterprise of Cambodia (FASMEC), a signing Tripartite Memorandum of Understanding (MOU) ceremony was held between Credit Guarantee Corporation of Cambodia (CGCC), Small and Medium Enterprise Bank of Cambodia (SME Bank), and Federation of Associations for SMEs of Cambodia (FASMEC). The ceremony was presided over by  Oknha Te Taing Por, the chairman of board director of FASMEC, Mr. No Lida, CEO of CGCC, Mr. Chea Sophak, CEO of SME bank, and was attended by the members of the Board of Directors of FASMEC, management, and staff of the three institutions, a total of approximately 30 people.

This MOU aims to promote the development of SMEs through CGCC’s guarantee on loans provided by SME Bank to FASMEC members. This collaboration will enhance access to essential financing for companies/businesses, particularly in the priority sector and members of FASMEC, by addressing collateral challenges. It also paves the way for collaborative efforts among three institutions to build SME capacity and improve financial literacy.

The signing ceremony concludes with a fruitful outcome that supports the SME ecosystem, aligning with the Royal Government’s Pentagon Strategy by providing opportunities to expand domestic production with improved quality, productivity, and global competitiveness.

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

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