ARDB provides over $400 million in loans to agriculture sector in H1
ARDB provides over $400 million in loans to agriculture sector in H1
Agriculture and Rural Development Bank (ARDB) has provided more than $400 million in loans to the agricultural sector including cultivation, breeding and processing in the first semester of 2024.
Dr Kao Thach, Royal Government Delegate In Charge as Chief Executive Officer of the Agricultural and Rural Development Bank (ARDB) Wednesday said that ARDB has provided about $440 million in loans by the first half of 2024 for the agricultural sector to provide more opportunities for producers to increase production and boost exports.
He said that due to the financial needs for the agricultural sector, the Royal Government of Cambodia (RGC) through the Ministry of Economy and Finance (MEF), has provided a series of financing packages to the Rural Development and Agriculture Bank (ARDB) to provide credit to this sector to help boost agricultural production and exports to international markets.
“By the end of the first semester of 2024, we provided about $440 million in loans to the agricultural sector including cultivation, breeding and processing,” said Dr Thach.
“We know that the government through ARDB always pays attention to provide credit access to boost cultivation, animal husbandry, especially to increase productivity in the sector.”
Last Friday, ARDB held the signing ceremony on the Memorandum of Understanding (MoU) with the Credit Guarantee Corporation of Cambodia (CGCC), presided over by Dr Thach and Wong Keet Loong, Chief Executive Officer of CGCC.
Under this agreement, the ARDB will be able to obtain a credit guarantee service from the Credit Guarantee Corporation of Cambodia for projects that ARDB Bank is implementing or to be implemented in future projects.
According to the report presented by the Ministry of Agriculture, Forestry, and Fisheries (MAFF), the country saw an unprecedented growth of nearly 60 percent in agricultural exports compared to the same period in 2023.
Sharing the news on social media on July 20, Prime Minister Hun Manet announced a significant boost in Cambodia’s agricultural exports during the first half of this year, marking the highest increase in the last five years.
Cambodia’s agricultural exports reached over six million tonnes, an increase of nearly 60 percent compared to the first half of last year. The exports were distributed to 77 international markets making this the highest increase in the last five years.
A significant 94 perccent of Cambodia’s agricultural products were exported to primary markets, including China, Vietnam and Thailand. China imported bananas, rice, cassava, mango and lentils, while Vietnam received cashew, cassava and fresh mango. Thailand imported cassava, fresh mango, pepper and bran.
The combined value of non-rice agricultural products and rice exports exceeded $1.8 billion. Rice exports alone were valued at over $400 million.
