Prince Bank joins CGCC-led Business Recovery Guarantee Scheme to assist SMEs during Covid-19 pandemic
Prince Bank joins CGCC-led Business Recovery Guarantee Scheme to assist SMEs during Covid-19 pandemic
Prince Bank Plc on Wednesday partnered with the government-owned Credit Guarantee Corporation of Cambodia Plc (CGCC) to offer special loans to support cashstrapped businesses – including small and medium-sized enterprises (SMEs) – through the challenges of the Covid-19 pandemic.
The loans will be channelled through the $200 million Business Recovery Guarantee Scheme (BRGS).
The BRGS was initiated by the Ministry of Economy and Finance in March to improve businesses’ access to formal loans from participating financial institutions (PFIs) for working capital, investment and business expansion.
Prince Bank has become one of the pioneer banks supporting this government initiative.
CGCC’s guarantee will act as collateral (security) for 70-80 per cent of the loan amount borrowed from PFIs, reducing the physical collateral required from borrowers.
“The current economic instability due to the pandemic has had a profound impact on local businesses, rendering them more dependent on external sources of funding.
“In this partnership with CGCC, we aim to support businesses including micro, small and medium enterprises, as well as large firms, to enhance their access to formal loans from Prince Bank for working capital investment and business expansion.
“In addition, it is also our commitment to support the government’s initiatives for business survival and economic recovery during the Covid-19 pandemic,” Prince Bank CEO Honn Sorachna said.
Many businesses are finding it difficult to manage cash flow and gain access to additional funding to tide them over during the current pandemic-induced volatile business environment. Small startups and those seeking to expand, invest or sustain their businesses have also not been spared from these financial woes.
Recognising the uncertainty of the prevailing situation, Prince Bank is ready to support its customers by providing liquidity and offering preferential rates for their business loans.
“CGCC is very pleased at having Prince Bank as one of the participating financial institutions for the credit guarantee scheme.
“With this partnership, CGCC is able to reach out and support more business borrowers through the 32 branches of Prince Bank.
“As of June 30, CGCC has total guaranteed loans of $4 million and is optimistic that the numbers will increase,” said CGCC CEO Wong Keet Loong.
By participating in the scheme, Prince Bank is aiming to provide new secured and unsecured loans for viable businesses. This will enable business owners who lack collateral to apply for unsecured loans at Prince Bank in which the CGCC will stand as the guarantor.
