CGCC provides $232 million credit guarantees to MSMEs
CGCC provides $232 million credit guarantees to MSMEs
The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $232 million to 2,783 micro, small and medium-sized enterprises (MSMEs) as their working capital for expansion.
“As of the end of September 2024, CGCC has supported 2,783 businesses by providing credit guarantees for their loan applications, amounting to $232.42 million,” CGCC said.
The outstanding guaranteed loan as of September was $142.74 million while the outstanding guaranteed amount was $104.18 million.
There are 2,610 micro, small and medium enterprises (MSMEs) and 173 large businesses in Cambodia, the report said, adding that 1,225 of the businesses were women-owned.
CGCC’s efforts have resulted in providing loan guarantees to MSMEs across all provinces, said Wong Keet Loong, former CEO of CGCC, whose position ended in late September.
“A credit guarantee mechanism was much needed in the country. Today, as we enter our fourth year of operation, CGCC has proven to be a vehicle for sustainable financing of MSMEs,” Wong 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 March 29, 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.
In January this year, CGCC launched its guarantee for corporate bonds listed on the Cambodian Stock Exchange. This marks the diversification of our guarantees beyond bank loans to guarantee corporate bonds issued by larger-sized SMEs.
