The state-owned Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) and AgriBee (Cambodia) Plc have entered into a partnership aimed at “enhancing and developing” the agricultural production sector through collateral-free, low-interest rate financing.
The two companies signed a memorandum of understanding (MoU) on April 11 to provide financing to agricultural production chain players introduced by AgriBee (Cambodia) Plc, with “favourable terms and low-value credit” to be offered.
The financing would be made available to businesses or individuals that are suppliers of agricultural inputs, traders, processors, wholesalers and retailers.
The funding is said to be worth up to $500,000 and aims to “facilitate the sharing of information on access to finance” for SMEs in Cambodia.
SME Bank CEO Lim Aun said the bank was “very pleased” to cooperate with AgriBee to help “bolster and accelerate the development process” of SMEs in Cambodia in line with the government’s goal of boosting economic growth.
He added that this partnership will bring “great value” to enterprises and businesses that support, supply and depend on agricultural yields. They will be able to receive financing for working capital or capital investment with favourable terms and “many other credit benefits”, he said.
“Through this enormous partnership from financial and target institutions, SME Bank hopes that all SMEs in Cambodia will be able to apply for funding and recover from the Covid-19 crisis, and play a key role in boosting economic activity and spurring overall economic growth.”
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Author: Hom Phanet
Source: The Phnom Penh Post
Publication date: 12 April 2022