The Ministry of Economy and Finance and Credit Guarantee Corporation of Cambodia (CGCC) today launched the Business Recovery Guarantee Scheme (BRGS).
According to the ministry’s press release made public this morning, the BRGS aims to support business including micro, small and medium enterprises, and large firms to enhance their access to formal loans from Participating Financial Institutions (PFIs) for working capital, investment, and business expansion. This initiative is in line with the policies of the Royal Government of Cambodia to support the survival and economic recovery during the COVID-19 pandemic.
CGCC is the first-ever credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance. CGCC’s main mission is to provide credit guarantees to PFIs to support and assist financially viable businesses that lack collateral when applying for loans.
The first tranche of the BRGS will contribute to US$200 million increase of new loans in the banking sector for business owners to borrow from the following CGCC’s PFIs i.e., ACLEDA Bank, Asia Pacific Development Bank, AMK MFI, Cambodia Post Bank, Canadia Bank, Phillip Bank and Prince Bank. The scheme will also be available at other bank and MFIs that are in the process of becoming CGCC’s PFIs. CGCC’s guarantee will act as collateral/security for 70-80 percent of the loan amount borrowed from the PFIs; thus, reducing the physical collateral required from the borrowers.
H.E. Ros Seilava, Secretary of State of the Ministry of Economic and Finance, and Chairman of CGCC’s Board of Directors states that the launch the BRGS by CGCC is timely to support businesses who plan to borrow from the PFIs during this pandemic. This milestone supports the Government’s policy to maintain sustainable and inclusive economic growth and in line with the Industrial Development Policy 2015-2025. He calls for banks and MFIs to support CGCC by being its PFIs and ensure good credit governance.
Cambodian-owned businesses (>50 percent ownership) may approach the above PFIs for the CGCC scheme or visit CGCC’s website www.cgcc.com.kh for more information.
“The Ministry of Economy and Finance and CGCC look forward to working closely with all stakeholders to support the growth of businesses with the BRGS,” underlined the press release.
Source: Agency Kampuchea Press