Signing ceremony between CGCC and Chamroeun MFI to support SMEs in Rural Area
October 22, 2021Events and Activities
Credit Guarantee Corporation of Cambodia (CGCC) and Chamroeun Microfinance conducted a signing ceremony on the credit guarantee agreement on 22 October 2021 to expand supports to Agri-SMEs in Cambodia who lack collaterals in accessing formal loans for their businesses with CGCC’s guarantees.
Mr. Wong Keet Loong, Chief Executive Officer of CGCC, expresses a warm welcome to Chamroeun MFI on becoming a Participating Financial Institutions (PFIs) of CGCC.
Mr. Wong mentions that: “the collaboration with Chamroeun MFI will enable CGCC to support the Agri- SMEs in rural areas who have difficulty to access formal financing from FIs. Chamroeun MFI will be able to provide financing to those micro, small and medium entrepreneurs (MSME) who do not have sufficient collateral for the loans. With access to financing, we hope that the MSMEs will be able to scale up their livelihood, thus, reducing poverty.”
Mr. Yannick Nicolas MILEV, Chief Executive Officer of Chamroeun MFI, said: “CGCC’s initiatives are key to helping building rural economies and market systems. Agri-SMEs in rural areas often find it difficult to access formal financing as the requirements from financial sector providers often do not match the capacities these Agri-SMEs have. The guarantee schemes allow for this gap to be bridged, and for both players to ultimately better understand each other’s business realities and processes – in turn strengthening financial inclusion for high impact businesses.”
Cambodian Business owners, including SMEs with more than 50% ownership, are encouraged to apply for guaranteed loans with CGCC’s PFIs, including Chamroeun MFI. Please visit Chamroeun MFI’s website for more information: https://www.chamroeun.com/
As of 20 October 2021, CGCC has supported more than 105 businesses through credit guarantees on their loan applications, amounting to more than USD 14 million. Also, CGCC has provided the most guarantees to SMEs, which is accounted for 94% of the total businesses receiving the credit guarantees from CGCC.