According to ACLEDA Bank Plc. the Japan International Cooperation Agency (JICA) and Sumitomo Mitsui Banking Corp’s (SMBC) Singapore Branch signed a $135 million facility agreement with ACLEDA Bank Plc on May 27 to channel more loans towards agricultural.
In Channy, president and group managing director of ACLEDA Bank, said the two Japanese institutions’ long-term finance scheme would provide a significant avenue for the local bank to lend a hand to micro, small, and medium-sized enterprises (MSME) nationwide in need of financing for agricultural production or better revenue management.
Cambodians, particularly those in rural areas, can take advantage of the ACLEDA Bank’s financial services, which include agricultural loans, according to Channy.
The $135 million facility, he said, will “increase access to finance, especially in rural areas, for further financing to agriculture to support agriculture productivity and socioeconomic development.”
Agriculture is an important economic pillar in the Kingdom, accounting for roughly 20% of GDP and 30% of employment, according to JICA.
Through ACLEDA Bank, the financial institution with the largest loan balance in Cambodia’s agricultural sector, this loan will greatly enhance access to credit for these rural farmers.
As of March 31, ACLEDA Bank has $8.16 billion in total assets, $5.79 billion in total credit portfolio, and $5.90 billion in total deposits, with 3.44 million clients.
