ARDB funds boost agricultural growth
ARDB funds boost agricultural growth
The Agricultural and Rural Development Bank (ARDB) has disbursed over $400 million in loans to enhance productivity, cultivation and export promotion. Approximately 50% of the capital was allocated to the rice sector.
Thach, CEO of ARDB, stated during the bank’s 25th anniversary on December 13 that since its inception in 1998, the bank’s share capital has grown from $2.5 million to about $170 million in 2023, representing an average annual increase of approximately 22%.
The institutions loan portfolio expanded from $0.52 million in 1998 to about $423 million in 2023, marking an average annual increase of 28%.
Total assets have risen from $2.5 million in 1998 to approximately $460 million in 2023, averaging a 23% annual increase.
“As a government policy bank, ARDB has undergone extensive reforms. Subsequent transformations have evolved the Rural Development Bank [RDB] into ARDB, operating as a commercial bank with expanded banking operations,” he stated.
He highlighted the bank’s role in developing the agricultural sector through various projects.
These include establishing a fund to bolster paddy rice production and milled rice exports, supporting the private sector, especially small and medium-sized enterprises (SMEs), associations, communities and companies.
Thach said the support is aimed at ensuring price stability and food security, enhancing the capacity of paddy rice warehouses, dry silos and modern processing machines.
“Special financing projects to support the rice sector, particularly in constructing rice-related infrastructure, are underway under a Build-Own-Operate [BOO] scheme to address infrastructural deficits in the rice production chain,” he added.
He noted the organisation’s investments in rice warehousing and dry silos across construction sites in Battambang, Kampong Thom, Prey Veng and Kampong Speu provinces. The infrastructure supports the export of 1 million tonnes of milled rice per year, in line with government policy.
Thach mentioned a special intervention financing scheme to provide loans to SMEs in the sector, focusing on cultivating vegetables, fruits, cashews, Pailin longans, mangoes, animal husbandry, aquaculture and agricultural production processing to expand the enterprises.
Minister of Economy and Finance Aun Pornmoniroth, who presided over the event, commended the bank’s achievements.
He noted the establishment of a $36 million support fund by the bank for enhancing the capacity of warehouses, dry silos, rice millers and rice processing, aiming to ensure price stability and food security.
He said the institution also allocated an additional $90 million in special interventions for working capital to purchase paddy rice to help maintain the balance of prices for farmers.
He noted that ARDB financed $67.5 million for other agricultural-related projects in collaboration with international development partners.
Pornmoniroth noted the implementation of a special intervention package within the strategic framework for economic recovery 2021-23, worth about $178 million. Additionally, a coordination mechanism and financing programme worth about $100 million aims to boost production, find markets and maintain key agricultural valuations at a reasonable level during price crises.
“Promoting agriculture and rural development remains a priority for the 7th government mandate. We continue to strengthen and modernise Cambodia’s agricultural sector and support rural development to ensure food security and safety, increase added value, promote competitiveness and improve the quality and standard of living for rural people,” the minister stated.
