CGCC Boosts Cambodian Businesses with $174 Million in Credit Guarantees
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The Credit Guarantee Corporation of Cambodia (CGCC) has significantly bolstered the local economy by providing $174 million in credit guarantees to 2,070 businesses for their expansion efforts as of February this year. A recent factsheet from CGCC highlights that, by the end of February 2024, the total outstanding guaranteed loans reached $120 million, with the actual guaranteed amount standing at $86.9 million.
The beneficiaries of this initiative include a diverse mix of 1,918 micro, small, and medium-sized enterprises (MSMEs), alongside 152 larger corporations across Cambodia. Notably, a substantial portion of these businesses, totaling 881, are owned by women, underscoring the CGCC’s role in promoting gender equality in the business sector.
This financial support has been facilitated through collaborations with 27 participating financial institutions (PFIs), which extend these critical funds as working capital for investment and business growth, specifically targeting SMEs.
Launched in November 2020 with an initial state budget allocation of $200 million, the CGCC was established with the mission to enhance financial inclusivity and spur the development of SMEs within the nation. This initiative reflects the CGCC’s position as the preferred institution for credit guarantees in Cambodia, aiming to address the financial needs of businesses, especially in the challenging times following the Covid-19 pandemic and the subsequent inflationary pressures.
Mey Vann, the Secretary of State at the Ministry of Economy and Finance, praised the CGCC’s instrumental role in facilitating smooth loan distributions, which have in turn fostered entrepreneurship and financial inclusion across Cambodia. He highlighted the importance of the CGCC’s efforts in meeting the critical financial needs of SMEs during these turbulent times, enabling them to secure necessary bank credits for sustaining and growing their operations.
