Logo of Phnom Penh Post newspaper Phnom Penh Post - ARDB farm loans now total $37M

ARDB farm loans now total $37M

Content image - Phnom Penh Post
ARDB director-general Kao Thach says he will continue to encourage people to file for loan applications. KAO THACH VIA FACEBOOK

ARDB farm loans now total $37M

Loan applications to the state-owned Agricultural and Rural Development Bank (ARDB) reached $37 million on Thursday since it announced the launch of a $50 million emergency fund for small and medium-sized enterprises (SMEs) on March 16.

ARDB director-general Kao Thach told The Post that the bank has received 350 loan applications since the government launched the fund. More than $10 million in loans have been approved.

He said: “Fish and animals farmers have applied for the most loans, follows by vegetable growers.

“These lacklustre approval figures are a consequence of slow document processing in some areas, which held back the overall approval procedure.”

He said the loan scheme would allow SMEs in agro-industry to expand their businesses and enhance their production lines, aiming to hone their competitive edge and reducing imports from neighbouring countries.

“We will continue to invite and encourage those who need capital to expand their business to file for loan applications under our one-of-a-kind scheme,” said Thach.

A farmer from Banteay Meanchey province, who declined to be named, said he is considering applying for a loan to expand his cultivation of Australian red-claw crayfish.

He said the crayfish – also known by its scientific name Cherax quadricarinatus – has become a highly marketable commodity, with a price of $30 per kg.

“I am interested in borrowing money from the bank because of the low interest rate. I have just started crayfish farming and have more than 4,000, and I want more capital to raise even more,” he said.

The ARDB currently offers loans ranging between $10,000 and $300,000.

The government in May decided to cut the annual interest rates from six to five per cent for working capital and from 6.5 to 5.5 per cent for capital investment, without service charges.

Thach said at a signing ceremony with Wing (Cambodia) Limited Specialised Bank late in May that the ARDB could receive some parts of the Ministry of Economy and Finance’s $300 million financing, which will allocate additional financing to support and play a catalyst role to boost growth in key sectors during and after the Covid-19 crisis.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a