Meet the Business Owner Who Received a Loan Guaranteed by CGCC

Agriculture is one of the key sectors in supporting Cambodia’s economic growth. Seeing the potential to promote Cambodian products and support Cambodian farmers, I decided to start a Cambodia Safety Vegetable Union of Agricultural Cooperative in 2021.

When starting this business, my main challenge was the lack of human resources to prepare documents and handle administrative work since most of the community union members were farmers. Another major challenge was the lack of working capital to expand the business and product exports. The solution for me was a loan from a financial institution.

At first, because my collateral was not enough for the loan, I could not obtain the necessary loans to support my business. However, later with a guarantee from CGCC, I was able to receive a sufficient business loan from Chamroeun Microfinance Institution. I used the guaranteed loan as a working capital, which allowed me to grow my Cambodia Safety Vegetable business to serve my customers and distributors in many provinces and cities on time. I also gained the trust of various development partners on my business.

Obtaining a guaranteed loan from CGCC depends on the potential of my business, namely the possibility of growth, building a good credit history, as well as completing the required documents that can confirm the need to use a loan for my business. Other business owners who need capital but lack collateral can also seek credit guarantees from CGCC through CGCC partner banks or microfinance institutions.

Read more: Meet the Business Owner Who Received a Loan Guaranteed by CGCC

Understanding GMS of CGCC

A business cannot grow to its full potential without technology. CGCC is not an exception. “Information technology and business are becoming inextricably interwoven. I don’t think anyone can talk meaningfully about one without talking about the other”, said Bill Gates, founder of Microsoft. Since the first day of its operation, CGCC has embraced information technology, starting with the basic functions of Excel spreadsheets and Microsoft SharePoint to manage credit guarantee operations. Today, CGCC hit a new milestone by launching the Guarantee Management System (GMS) to further leverage information technology for effective credit guarantee operation. Technology adoption is our commitment to play a small part in supporting the key priorities – People, Road, Water, Electricity, and Technology – of the “Pentagonal Strategy – Phase I” of the new Royal Government of Cambodia.

What is GMS?

GMS is a digital platform that automates and streamlines the credit guarantee process, making it more convenient, faster, and more secure. It is the first-ever and only digital platform to manage a credit guarantee operation in Cambodia, tailored explicitly to CGCC’s credit guarantee model. It is a web-based system developed using microservices architecture and modern technologies to improve the guarantee process’s efficiency, accuracy, and security.

How was GMS developed?

. End-to-end automation: The GMS automates the guarantee application process, from PFI’s submission to CGCC’s approval. Auto validation of CGCC’s scheme features is integrated to reduce error and time consumption when composing and reviewing the guarantee application.

. Real-time tracking: The GMS provides real-time monitoring of the status of all guarantee applications, allowing users to stay updated on the progress of each application and request.

. Comprehensive reporting: The GMS provides comprehensive reporting on all credit guarantee activities, allowing users to track the performance of guaranteed loans and identify areas for improvement.

. High security: The GMS is hosted on a secure platform and uses the latest security technologies to protect user data.

Read more: Understanding GMS of CGCC

Cambodia’s Credit Guarantee Agency, Chamber of Commerce Sign MoU to Boost Loan Access for MSMEs

PHNOM PENH, April 28 (Xinhua) — State-owned Credit Guarantee Corporation of Cambodia (CGCC) and the Cambodia Chamber of Commerce (CCC) have signed a memorandum of understanding (MoU) to promote access to guaranteed loans for the development of micro, small and medium enterprises (MSMEs), said a joint statement on Friday.

The cooperation will provide support to MSMEs, mainly CCC members, with greater access to finance despite collateral challenges, and promote financial literacy, including credit guarantees to CCC members across the Southeast Asian country, the statement said.

The CGCC is a state-owned enterprise providing credit guarantees on loans disbursed by participating financial institutions to support viable businesses that lack collateral when applying for loans, the statement added.

CGCC Chief Executive Officer Wong Keet Loong said the MoU will make it easier for CCC members to access financing, and demonstrate a shared commitment to promoting economic growth and development in Cambodia.

“Together with CCC, we can support the development of SMEs in Cambodia by improving financial inclusion and financial literacy,” he said. “By working together, the two organizations will help MSMEs overcome financing challenges and unlock their potential to drive economic growth in the country.”

CCC Director-General Nguon Meng Tech said the MSMEs play significant roles in economic development, but at the same time, they face a lot of challenges, particularly financial constraints.

“The MoU is a positive sign that will help strengthen and deepen the cooperation between the two institutions,” he said.

Incorporated in 2020, the CGCC had supported 1,275 businesses by providing credit guarantees for their loan applications in a total amount of 113.6 million U.S. dollars as of March 2023, the statement said.

Credit to: Xinhua, Published on 28 April 2023

“CGCC Annual Staff Retreat 2023 in Siem Reap”

On November 9 to 12, 2023, CGCC organized the annual staff retreat along with a training program on “Action Leadership for Growth,” as well as a team building at Siem Reap province on November 9 to 12, 2023, to strengthen productivity,​ solidarity, and appreciation to all staff’s efforts in credit guarantee development.

“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”

This annual staff retreat provided all staff with a closer understanding of each other, shared working experiences, and increased capacity building and knowledge on action leadership for the growth to improve their productivity, as well as to contribute to the development of CGCC, in line with the vision to enhance financial inclusion and develop SMEs in Cambodia too.

“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”
“CGCC Annual Staff Retreat 2023 in Siem Reap”

CGCC Provides $149M Credit Support

In a bid to give a much-needed boost to micro, small and medium-sized enterprises (MSMEs), the Credit Guarantee Corporation of Cambodia (CGCC) has infused credit guarantees of as much as $149 million as of September 2023. A report issued on October 17 revealed 1,762 businesses benefited from them.

“The Credit Guarantee Corporation of Cambodia has provided guarantees for $149 million in loans for business, investment and business expansion capital to support large, micro and small businesses,” said a report.

A CGCC report put the total outstanding guaranteed loans at $111 million and outstanding guaranteed amount at $80 million. It also put the number of MSMEs at 1,617 and large entities at 145, with 741 being women-owned.

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

A Ministry of Economy and Finance undertaking, CGCC was the first credit guarantee institution in the Kingdom set up in August 202 at the height of the Covid-19 pandemic.

The CGCC guarantee ensures easy credit for SMEs and a bigger market for their products, said Te Taing Por, President of the Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC).

“Credit guarantee from the Credit Guarantee Corporation of Cambodia is an opportunity for small and medium-sized enterprises, members of FASMEC, who are facing a lack of collateral to access financing to expand their business,” Taing Por said.

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

Credit to: Khmer Times, Published on 19 October 2023

Training on PowerPoint Designs and Presentation Skills for CGCC’s Staff

On 30 August 2023, CGCC organized a training on “PowerPoint Designs and Presentation Skills” for all staff at CGCC head office.

CGCC hopes this training course will help improving the presentation skills of all CGCC staff and contributing their work performance as well as CGCC development as a whole.

Training on PowerPoint Designs and Presentation Skills for CGCC's Staff
Training on PowerPoint Designs and Presentation Skills for CGCC’s Staff
Training on PowerPoint Designs and Presentation Skills for CGCC's Staff
Training on PowerPoint Designs and Presentation Skills for CGCC’s Staff
Training on PowerPoint Designs and Presentation Skills for CGCC's Staff
Training on PowerPoint Designs and Presentation Skills for CGCC’s Staff
Training on PowerPoint Designs and Presentation Skills for CGCC's Staff
Training on PowerPoint Designs and Presentation Skills for CGCC’s Staff

Click here to read more about: CGCC Provides Guarantee Management System “GMS” Sharing and Training Sessions to Participating Financial Institutions (PFIs)

CGCC, Kasikornbank Join Hands to Support MSMEs

Credit Guarantee Corporation of Cambodia (CGCC) and the Branch of Kasikornbank Public Company Limited (Phnom Penh) have signed the Credit Guarantee Agreement to support micro, small and medium-sized enterprises (MSMEs).

The signing ceremony was held at CGCC’s office in the presence of Ros Seileva, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, Cherdkiat Atthakor, Ambassador of Thailand to Cambodia and Suwat Techawatanawana, Executive Vice President of Kasikornbank Thailand.

Wong Keet Loong, Chief Executive Officer of CGCC, said that the bank’s branch in Cambodia can tap on their experience in providing guaranteed loans in Thailand.

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

Ritthiwut Watthanachai, General Manager of Kasikornbank in Phnom Penh, said that the initiative seamlessly aligns with the bank’s business plan for the next phase.

“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 to join the credit guarantee scheme, this partnership underlines Kasikornbank’s aspiration and commitment to supporting the government’s vision for SME development,” he said.

CGCC aims to improve financial inclusion and develop MSMEs with the main mission of providing guarantees for loans given to MSMEs through Participating Financial Institutions (PFIs).

The Kasikornbank in Phnom Penh now become one of the 27 PFIs of CGCC, committing to assisting business entities in line with the Cambodian government’s direction to support MSMEs.

The CGCC has provided credit guarantees of $139.5 million to 1,648 businesses for their working capital expansion as of July 2023.

Credit to: Khmer Times, Publish on 03 October 2023

CGCC and Kasikornbank Agreement Inked to Support Cambodian MSMEs

The Credit Guarantee Corporation of Cambodia (CGCC) and Kasikornbank Public Co Ltd’s (KBank) Phnom Penh branch have formalised a credit guarantee agreement. This move aims to enhance confidence and extend guaranteed financing to business proprietors, particularly micro, small and medium-sized enterprises (MSME).

Among those present at the signing ceremony at the CGCC headquarters in Phnom Penh were Ros Seileva, chairman of the CGCC and secretary of state for the Ministry of Economy and Finance, Thai ambassador Cherdkiat Atthakor and KBank Thailand executive vice-president Suwat Techawatanawana.

Wong Keet Loong, the CEO of CGCC, expressed his enthusiasm about the partnership.

“We’re honoured to collaborate with a top-tier bank to provide credit guarantees to bolster MSME financing in Cambodia,” he stated.

He highlighted the extensive experience of the Thai banking sector in guaranteed loans and hoped this would translate to more financing opportunities for Cambodian businesses.

“This partnership paves the way for cross-border guarantees between Thai and Cambodian enterprises. We’re looking to collaborate and learn from the Thai Credit Guarantee Corp, seasoned with over 30 years of expertise, later this year,” Loong added.

Ritthiwut Watthanachai, the general manager of KBank Phnom Penh, emphasised the strategic importance of Cambodia in the growth plan of the Bangkok-headquartered KBank, one of Thailand’s premier financial institutions formerly known as Thai Farmers Bank.

“Our alliance with CGCC significantly broadens our outreach to entrepreneurs, enhancing our service capabilities. Being the first bank to participate in the credit guarantee plan showcases our commitment to fostering MSME growth in alignment with the government’s vision,” Watthanachai said.

CGCC’s core mission is to augment financial inclusivity and foster MSME growth by ensuring loans through Participating Financial Institutions (PFI) for MSMEs. On the other hand, KBank Phnom Penh offers an array of financial services and solutions catering to individuals and enterprises.

Credit to: The Phnom Penh Post, Published on 02 October 2023

CGCC gets Honorable Mention in Global Finance SME Award 2023

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

Meet the Business Owner Who Received a Loan Guaranteed by CGCC

Seeing that the financial awareness of Cambodian people is still limited, and their use and management of finances are not very effective, my husband and I started this company RithyPul in 2012 to spread the knowledge and share financial advice. Until 2020, our business was affected by the COVID-19, however we can still get through it until today. The most difficult factor at that time was the lack of working capital to support day-to-day business operations. At that time, we used our property as collateral to apply for a loan, but we still could not get enough capital as needed. The best solution at that time was to have a CGCC’s Participating Financial Institution, CAMMA Microfinance, advising us to apply for a CGCC guaranteed loan for our business, which would allow us to obtain a loan without collateral to use as working capital.

After obtaining guaranteed loans from Participating Financial Institution of CGGC, we are also able to address several key issues such as marketing, advertising, and overall business operation costs. We have expanded our business with more staff, and customers becoming more aware and acquainted with the use of our services has increased steadily. On the other hand, we also have more time to think about new strategies without having to worry about capital issues.

The success of a business depends on many factors, including having enough working capital, that is the most important factor for every business. We would like to thank the Government for establishing CGCC to support our business and other MSMEs on access to finance, as well as to improve financial inclusion in the country.

Read and Download in PDF: Mrs. Bopha Pen, Executive Director Rithipul Training Center