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Co-Financing Guarantee Scheme for Tourism (CFGS-TR)

Co-Financing Guarantee Scheme for Tourism (CFGS-TR) is a sub-credit guarantee scheme under the Co-Financing Guarantee Scheme (CFGS) offered by the CGCC to Participating Financial Institutions (PFIs) on the loans lent out under the Tourism Recovery Co-Financing Scheme (TRCS) of SME Bank of Cambodia.  

CFGS-TR aims to support the recovery and survival of businesses in the tourism sector which was impacted by the Covid-19 pandemic. CFGS-TR is in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during and after the COVID-19 pandemic.

Click here for : the official document of CFGS-TR guidelines

CFGS-TR Scheme Features

Eligible Borrowers

For loans to be qualified for the CFGS-TR, the borrowers must fall into the following criteria: 

  • The Borrower must be a majority Cambodian-owned business, shareholding of more than fifty (50) percent.
  • The Borrower must produce a business registration issued by appropriate government authorities. 
  • The Borrower who is a non-registered SME must proceed with the registration after the guarantee is approved. If the borrower remains a non-registered SME, an additional guarantee fee of 0.5% per annum of the guaranteed amount will be imposed on every anniversary of the guarantee.
  • All Borrowers should be financially viable.

How to apply for CFGS-TR?

Step 1: Borrower need to apply for a loan under CFGS-TR from any mutual Participating Financial Institutions (PFIs) of CGCC and SME Bank of Cambodia.

Step 2: After approving the loan using their own appraisal method, PFIs shall submit the Guarantee Application Form to CGCC for guarantees not more than 60 days from the approval date.  

Step 3: CGCC shall review the loans and Guarantee Application to decide whether to approve the guarantee or not. In the case the guarantee is approved, CGCC shall issue a Letter of Guarantee and billing to the PFIs. 

Step 4: PFIs shall disburse the Guaranteed loans to borrowers after the Letter of Guarantee is issued and the Tourism Recovery Co-financing loan drawdown is approved by the SME Bank of Cambodia. In case the Tourism Recovery Co-financing loan drawdown is rejected by the SME Bank of Cambodia, the Letter of Guarantee issued by CGCC will become invalid.

Benefits of CFGS-TR

  • 1. Supporting SMEs in tourism sector survival and economic recovery during the COVID-19 pandemic in line with Government's policies.
  • 2. Acting as collateral/security for 70%-80% of the loan amount borrowed from the PFIs, making SMEs in tourism sector more bankable.
  • 3. Helping SMEs in tourism sector access to financing and improving financial inclusion in Cambodia
  • 4. Sustaining SMEs in tourism sector operation during COVID-19 outbreak and providing capital investment for business Recovery
  • 5. Serving as a policy tool for long-term growth of SMEs in tourism sector.
  • 6. Diversifying and sharing risks with PFIs, allowing more loans to be approved for SMEs in tourism sector.