The Credit Guarantee Corporation of Cambodia (CGCC) has been instrumental in driving economic growth by infusing credit guarantees totaling an impressive $164.7 million into the Cambodian business landscape as of December 2023. This significant financial support has reached 1,928 enterprises across the country, breathing new life into large corporations, micro-enterprises, and small businesses alike.
The recent report released by CGCC highlights the organization’s pivotal role in Cambodia’s financial landscape, stating, “The Credit Guarantee Corporation of Cambodia has provided guarantees for $164.7 million in loans, fostering business development, investment, and expansion capital to bolster the growth of enterprises, irrespective of their size.”
Of the total amount, an outstanding sum of $116.1 million has been channeled towards guaranteed loans, while an additional $83.6 million remains at the disposal of businesses to tap into, offering them the much-needed financial cushion in today’s challenging economic climate.
At the heart of the CGCC’s success lies its collaborative initiative with 27 participating financial institutions (PFIs), working hand in hand to extend credit, primarily as working capital investment and support for business expansion. This partnership ensures a comprehensive and well-rounded approach to boosting the resilience and growth of small and medium-sized enterprises (SMEs) across Cambodia.
Established in November 2020 with a substantial state budget of $200 million, the CGCC has quickly emerged as the go-to credit guarantee institution in Cambodia. Its primary mission is to enhance financial inclusion and propel the development of SMEs, which are often the backbone of any thriving economy.
Mey Vann, the Secretary of State at the Ministry of Economy and Finance, lauded the CGCC’s role in catalyzing entrepreneurship and fostering financial inclusion. In his statement, he emphasized, “The CGCC has played a pivotal role in meeting the pressing needs of Cambodia’s SMEs. These enterprises have faced unprecedented challenges stemming from the Covid-19 pandemic and the inflation crisis, making access to credit from traditional banks a lifeline for their businesses.”
The CGCC’s tireless efforts in providing extensive credit support have not only sustained businesses but have also paved the way for economic recovery and stability in Cambodia. By facilitating access to crucial funds, the CGCC continues to be a beacon of hope for SMEs, enabling them to not only survive but thrive in a rapidly changing economic landscape. As the organization continues its vital mission, it is poised to make an even greater impact on Cambodia’s entrepreneurial spirit and financial well-being in the years to come.
Source: Khmer Times
