Logo of Phnom Penh Post newspaper Phnom Penh Post - ARDB ponders interest rate cut

ARDB ponders interest rate cut

ARDB ponders interest rate cut

The state-owned Agricultural and Rural Development Bank (ARDB) is considering reducing the interest rate from six per cent to five per cent to encourage more small entrepreneurs to join in the implementation of the government’s $50 million special credit programme.

At a seminar on credit, ARDB CEO Kao Thach told about 250 poultry and vegetable farmers in Kandal province on Thursday that ARDB is considering lowering the interest rate to support farmers.

ARDB officially released a $50 million fund in March for lending to industrial enterprises at low interest rates. Currently, ARDB offers loans ranging from $10,000 to $300,000 with a six per cent interest rate for working capital and 6.5 per cent for capital investment per annum.

For collateral loans under this special financing programme, ARDB can provide up to 80 per cent of the value of collateral, he said.

“There will be more flexibility in obtaining collateralised loans as we will accept various types of collateral, including equipment and machinery, inventory, a letter of guarantee from the buyer’s side or other letter of guarantees, and non-real estate certificates of deposit,” said Thach.

Kandal provincial governor Kong Sophorn, who was also at the seminar, asked the ARDB to ease some credit conditions for farmers to allow them to expand their businesses.

“I would like to propose a reduction in the interest rate for farmers who have access to credit for doing business and ask for payment leniency given the situation fuelled by the Covid-19 outbreak. This, in accordance with the principles of the government and the National Bank of Cambodia,” he said.

Thach said the bank is currently reviewing loan applications for seven small- and medium-size enterprises (SMEs) in the agro-industrial sector. All of them applied for a $200,000 loan – the maximum working capital loan amount.

A survey by the Ministry of Industry, Science, Technology and Innovation of 71 enterprises in the Kingdom found that they needed assistance in market research, service development, packaging, technology adoption, human resources, access to labour, access to finance, business registration, taxation and improving hygiene standards.

MOST VIEWED

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Phnom Penh curfew starts today

    A two-week curfew from 8pm to 5am starts today in Phnom Penh, a day after a sub-decree detailing administrative measures to contain Covid-19 was issued by Prime Minister Hun Sen. “Travelling in Phnom Penh is temporally banned between 8pm and 5am,” said Phnom Penh governor

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants