CGCC provides credit guarantees of $191 million to 2,241 MSMEs
CGCC provides credit guarantees of $191 million to 2,241 MSMEs
The Credit Guarantee Corporation of Cambodia (CGCC) provided credit guarantees of nearly $191 million as of May this year to 2,241 micro, small and medium-sized enterprises (MSMEs) as their working capital for expansion since its service launched in 2021.
There were 2,081 micro, small and medium enterprises (MSMEs) and 160 large businesses in Cambodia, the report said, adding that 961 of the businesses were women-owned.
CGCC is optimistic that the credit guarantee will continue its momentum to increase annually, its CEO KL Wang in May said.
“Our participating FIs are beginning to find importance in the guarantees as a form of risk sharing for supporting their loans to MSMEs,” he said.
“With the recognition of guaranteed loans to be zero-risk weighted, it will improve the FIs capital adequacy ratios,” Wang said.
The CGCC scheme involves 28 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.
Established in November 2020 with a state budget of $200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.
CGCC, operated under the technical and financial guidance of the Ministry of Economy and Finance, launched the first guarantee scheme on 29 March 2021.
CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.
CGCC, Cambodia Rice Federation (CRF) and participating financial institutions (PFIs) signed in May an agreement on the $30 million Rice Export Guarantee Scheme (REGS) to help millers stockpile rice for milling, processing, exporting and making local value-added products.
