CGCC posts strong growth in loan guarantees

CGCC posts strong growth in loan guarantees

Credit guarantee mechanisms play a pivotal role in enabling Cambodia’s micro, small and medium-sized enterprises (MSMEs) to secure financing for expansion.

The Credit Guarantee Corporation of Cambodia (CGCC) has reported robust progress in its guarantee operations as of August 31, underscoring its expanding role in boosting business access to finance.

According to the latest CGCC factsheet released on Sunday, the total guaranteed loan reached $382.17 million, covering 6,780 accounts. Of this, the outstanding guaranteed loan stood at $220.37 million, while the outstanding guaranteed amount climbed to $151.74 million, reflecting sustained confidence in the scheme.

The data show that the bulk of approved guaranteed loans in 2025 were under the Wholesale Guarantee (WG) at $261.87 million (68 percent), followed by Individual Guarantees (IG) at $67.05 million (18 percent) and Portfolio Guarantees (PG) at $53.25 million (14 percent).

In August alone, CGCC approved $8.11 million in individual guarantees and $3.26 million in portfolio guarantees, while July saw a significant surge in wholesale guarantees at $50 million. The total outstanding guaranteed amount has risen steadily since January, moving from $111.06 million to $151.74 million in August.

For local currency loans, CGCC guaranteed KHR 193.4 billion out of a total of KHR 262 billion, while for USD loans it guaranteed $222.24 million out of $316.77 million. The factsheet also highlighted a non-performing guarantee rate of 8.6 percent, which remains manageable amid growing demand.

CGCC also reported its bond guarantee at $10 million, further diversifying its instruments to support Cambodian businesses.

With this momentum, CGCC continues to reinforce its role as a key government-backed institution supporting micro, small, and medium enterprises (MSMEs) in Cambodia’s economic recovery and growth.

Credit guarantee mechanisms are playing a pivotal role in enabling Cambodia’s micro, small and medium-sized enterprises (MSMEs) to secure financing for expansion, according to No Lida, Chief Executive Officer of CGCC.

“SMEs with strong growth potential often encounter difficulties obtaining loans due to insufficient collateral or the higher risk profiles that banks and microfinance institutions are unable to accommodate,” Lida said.

“In such cases, the Royal Government, through the CGCC, provides guarantees, allowing these enterprises to access much-needed credit,” he added.

Under the CGCC scheme, up to 80 percent of loans extended to SMEs are guaranteed, encouraging banks and microfinance institutions to increase lending in line with sectoral financing needs.

The programme operates in partnership with several participating financial institutions (PFIs), including the state-owned Agriculture and Rural Development Bank and SME Bank, which supply working capital and investment credit to support business expansion.

Established in November 2020, the CGCC has emerged as Cambodia’s principal credit guarantee institution, tasked with strengthening financial inclusion and promoting SME growth. Its guarantee programmes have been instrumental in helping MSMEs secure financing to seize investment opportunities, generate employment and raise incomes.

khmertimeskh