CGCC provides $288M in MSME credit guarantees

CGCC provides $288M in MSME credit guarantees

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $288 million for micro, small and medium-sized enterprises (MSMEs) as of April 2025 as their working capital for expansion, a report by CGCC said yesterday.

“As of the end of April 2025, CGCC has supported 4,709 businesses by providing credit guarantees for their loan applications, amounting to $288.93 million equivalent,” read the report.

The outstanding guaranteed loan as of April was $158.78 million, while the outstanding guaranteed amount was $116.42 million, said the report.

The CGCC provided $10 million as bond guarantee as of April of this year.

CGCC reported that Non-performance loans (NPL) was 10.91 percent.

There are 4,519 micro, small and medium enterprises (MSMEs) and 190 large businesses in Cambodia, the report said, adding that 2,233 of the businesses were women-owned.

The purposes of loans were largely as working capital, accounting for 86 percent of MSMEs, while the rest were as investment and business expansion.

No Lida, CEO of CGCC, recently stated that credit guarantee mechanisms have been instrumental in helping promising MSMEs secure the funding to expand their production chains and operations.

“Many potential small and medium-sized enterprises are unable to obtain credits from banks and microfinance institutions due to a lack of collateral or a certain level of risk. In this case, the Cambodia government, through the CGCC, steps in to help guarantee the credit of small and medium-sized enterprises,” he said.

Through the Cambodian Credit Guarantee Corporation, which insures up to 80 percent of loans to small and medium-sized enterprises, the government expects that banks and microfinance institutions will be able to provide more loans according to the needs of small and medium-sized enterprises, he said.

The CGCC scheme involves participating financial institutions (PFIs) including state-run Agriculture and Rural Development Bank and SME Bank to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.

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.

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