The state-owned Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) has officially launched the “Phase II Co-financing Project” to prop up the business activities of local small- and medium-sized enterprises (SME) and abate economic Covid-19 woes.
The second phase was introduced after the first iteration achieved positive results, with participating financial institutions providing lifelines for SMEs in need of financing to keep from going under, and promoting economic recovery, the SME Bank noted in a press release on August 16.
The project aims to provide low-interest loans to promote the development of SMEs in priority sectors such as industry, services and commerce.
Prasac Microfinance Institution Plc executive vice-president Say Sony told The Post that his institution has been engaged in the scheme since its first phase, pitching in $5 million and disbursing $10 million under the project.
He said the management has agreed to match these figures in Phase II. “This special scheme will enable SMEs to access bank loan more easily and at lower costs, so they can come to Prasac or other participants if they need loans to support their business during this hard time.”
Sony lauded the government over the successful coronavirus vaccination campaign, but called on it to exert even more effort in its fight against Covid-19.
“We do hope general business activities will be back to a ‘new normal’ as soon as possible, and we’re counting on existing and new clients to come to us for loans to restart or expand their businesses, so we are ready to serve them through this SME Bank scheme as well as directly through our own funds,” he said.
The funds under this co-financing project amount to $100 million, which is an equal counterpart fund between the SME Bank and the participating financial institutions.
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Author: May Kunmakara
Source: The Phnom Penh Post
Publication date: 16 August 2021