MSMEs get credit guarantees of $305 million

MSMEs get credit guarantees of $305 million

Loans are largely for working capital, accounting for 86 percent of MSMEs, while the rest are for investment and business expansion.

The Credit Guarantee Corporation of Cambodia (CGCC) has supported over 5,000 micro, small and medium-sized enterprises (MSMEs) by providing credit guarantees for their loan applications, amounting to $305.33 million as of June this year, according to a report on Thursday.

“As of the end of June 2025, CGCC has supported 5,027 businesses by providing credit guarantees for their loan applications, amounting to $305.33 million equivalent,” the report read.

The outstanding guaranteed loan as of June was $166 million, while the outstanding guaranteed amount was $122 million, the report added.

The CGCC provided $10 million as bond guarantees as of June of this year. It reported that non-performing loans (NPL) were 10.91 percent.

No Lida, CEO of CGCC, recently highlighted the crucial role of credit guarantee mechanisms in enabling promising MSMEs to secure funding for expanding their production and operations.

“Many potential small and medium-sized enterprises struggle to obtain credit from financial institutions due to insufficient collateral or perceived risk. In response, the Cambodian government, through the CGCC, steps in to guarantee these credits,” he said.

With the Cambodian Credit Guarantee Corporation insuring up to 80 percent of loans to SMEs, the government anticipates that banks and microfinance institutions will be better able to meet the financing needs of these businesses.

There are 4,828 micro, small and medium enterprises (MSMEs) and 199 large businesses in Cambodia, the report said, adding that 2,233 of the businesses were women-owned.

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

The CGCC scheme involves participating financial institutions (PFIs), including the 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 capitalise on investment opportunities, boost employment and increase income.

khmertimeskh