Co-financing Credit Guarantee Scheme Phase II Launched

The Ministry of Economy and Finance launched Wednesday the "US$50 Million Co-Financing Credit Scheme Project" to support small and medium enterprises (SMEs) through the Credit Guarantee Corporation of Cambodia Plc. (CGCC).

Co-Financing Credit Scheme is a credit guarantee scheme that acts as collateral from 70 to 80 percent of the loan size to reduce asset demand of collateral from banking and financial institutions to borrowers.

The project will enable the issuance of new loans in the banking sector from CGCC's participating financial institutions to businesses.

Co-Financing Credit Scheme is the second of its kind. The CGCC launched a US$200 million credit bailout plan in March 2021 to support economic recovery during the COVID-19 crisis.

As of Sept. 21, 2021, CGCC has provided credit guarantees on 85 loans of approximately US$12 million to businesses through CGCC.

Source: Agency Kampuchea Press