CGCC Guarantees US$92 Million Loan to Private Firms

The Credit Guarantee Corporation of Cambodia (CGCC) of the Ministry of Economy and Finance has guaranteed loans of a total of US$92 million to nearly 1,000 private firms as of December last year.

The figures were mentioned in the annual meeting of the CGCC held here on Jan 17.

Speaking at the event, H.E. Mey Vann, Secretary of State at the Ministry of Economy and Finance, said that the guaranteed loans have been granted to 985 private firms, most of which were lack of required collateral for loan.

Established in late 2022, the CGCC aims to support businesses, including MSMEs and large firms, to enhance their access to formal loans from Participating Financial Institutions for working capital, investment, and business expansion.

CGCC’s credit guarantee will continue to act as collateral for 70 to 80 percent of the loan amount borrowed from the Participating Financial Institutions, thus, reducing the physical collateral required from the borrowers.

The CGCC has extended the Business Recovery Guarantee Scheme from Jan. 1, 2023 until the US$200-million scheme is fully utilised.

The Participating Financial Institutions include CLEDA Bank, AMK MFI, APD Bank, Cambodia Post Bank, CANADIA Bank, Phillip Bank, and Prince Bank.

Source: Agency Kampuchea Press