State-owned Credit Guarantee Corporation of Cambodia Plc (CGCC) has issued credit guarantees totalling $45.5 million to 448 businesses, as of May 31.
Out of the 448 businesses, 431 are small- and medium-sized enterprises (SME) and 17 are large, while 138 are owned by women.
CGCC was established by Sub-Decree No 140/ANKR/BK on September 1, 2020 to support businesses, especially SMEs to enable formal loans by guaranteeing lenders that principal and interest payments will be made.
Through its ongoing schemes, CGCC provides credit guarantees on loans disbursed by participating financial institutions (PFI), which include both banks and microfinance institutions (MFI).
In turn, CGCC requests that applicants fully understand PFI’s requirements and make the necessary preparations before taking out loans with credit guarantees.
“Bridging the gap between credit supply and funding demand supports economic growth and CGCC’s missions of providing credit guarantees to businesses and sharing the risk with crediting institutions, and increasing financial inclusiveness,” said CGCC deputy CEO No Lida.
Meanwhile, Hong Vanak, an economic researcher at the Royal Academy of Cambodia, told The Post on June 5 that the provision and receipt of a loan with legal guarantees have played an important role in stabilising the economy.
The credit guarantee agency also ensured that the process went smoothly, particularly during pandemic.
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Author: Hin Pisei
Source: The Phnom Penh Post
Publication date: 05 June 2022