AKP Phnom Penh, January 29, 2025 --

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of US$256 million for micro, small and medium-sized enterprises (MSMEs) as of the end of December 2024 as their working capital for expansion.

“As of the end of December 2024, CGCC has supported 3,139 businesses by providing credit guarantees for their loan applications, amounting to US$256.58 million,” CGCC said in a report.

The outstanding guaranteed loan as of December was US$149.58 million while the outstanding guaranteed amount was US$109.61 million, it pointed out. There are 2,985 micro, small and medium enterprises (MSMEs) and 181 large businesses in Cambodia, the report said, adding that 1,388 of the businesses were women-owned.

CEO of CGCC Mr. No Lida said that credit guarantee mechanisms have helped in contributing to the potential MSMEs that need funds to expand their production chains.

“Small and medium-sized enterprises that have potential but lack collateral or a certain level of risk that banks and microfinance institutions cannot provide credit to, so the Royal Government of Cambodia, through the CGCC, will step in to help guarantee the credit of small and medium-sized enterprises,” he said.

The CGCC scheme involves 28 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs. CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalise on investment opportunities, boost employment and increase income.

H.E. Ros Seilava, Secretary of State at the Ministry of Economy and Finance, has previously said that the CGCC plays a role in developing credit guarantee mechanisms that lead to the development of financing mechanisms and financial products that can contribute to economic diversification and increasing competitiveness in line with the Pentagonal strategy for growth.

“While the global economic model is changing, the CGCC has an important role to play in supporting small and medium-sized enterprises to have access to adequate financing to seize investment opportunities, increase employment and revenue aims to boost economic growth and achieve Cambodia’s vision in 2030 and 2050,” he said.

By Chea Vannak