Female business owners from 20 handicraft and agricultural enterprises who are members of the Women’s Farm Association will receive loans from state-owned Small and Medium Enterprise Bank of Cambodia Plc (SME Bank).

The loans will be offered at a low interest rate of 5.5 per cent with amenable conditions to restore their business after Covid-19.

This plan was announced during the signing of a memorandum of understanding (MoU) between the SME Bank and the Women’s Farm Association on July 4.

SME Bank CEO Lim Aun said the SME Co-Financing Scheme (SCFS) consisting of $340 million was designated for priority sectors which were identified by the government. The sum was broken into two phases – $100 million (Phase I) and $240 million (Phase II).

Phase III – also called the Tourism Recovery Co-Financing Scheme (TRCS) – which is a project to support businesses involved in the tourism value chain, amounted to $150 million. It started in July.

“The three phases, including the bank’s $500 million direct loan, have helped many sectors, with the provision of women’s financing being a priority and encouraging more by offering special conditions, like lower interest rates compared to that offered to male entrepreneurs,” he said.

So Kunthy, Women’s Farm Association board chairman, said the MoU was to enhance and support enterprises, which are mostly led by women.

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Author: Hom Phanet

Source: The Phnom Penh Post

Publication date: 05 July 2022