Logo of Phnom Penh Post newspaper Phnom Penh Post - Banks ink MoU for sustainable financing

Banks ink MoU for sustainable financing

Banks ink MoU for sustainable financing

Representatives of the Association of Banks in Cambodia (ABC), the International Finance Corporation (IFC) and the Mongolian Bankers Association (MBA) signed an agreement yesterday aimed at developing a sustainable financing framework for Cambodia.

Speaking to reporters after the signing ceremony, acting ABC Chairman Charles Vann said the memorandum of understanding (MoU) directs financial institutions in Cambodia to find the most appropriate mechanism for sustainable financing.

“We [banks] do business and not only target profits but think about both profits and the sustainability,” he said. “We propose to seek a way to help our clients’ businesses so that they can take out a loan and operate profitably while repaying the loan to the bank.”

Under the MoU, the IFC will provide assistance to promote sustainable financing and support the growth of green financing in Cambodia, while MBA will share its experiences of sustainable financing in Mongolia.

“We will share our knowledge on how Mongolian banks are screening [clients] in regard to lending in social and environmental issue,” said Unenbat Jigjid, secretary-general of MBA. “We hope that Cambodian banks will learn from these experiences and adopt their own framework suitable for their circumstances.”

MOST VIEWED

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • Shipwreck found off coast of Koh Kong

    Royal Cambodian Navy researchers are working to identify a decades-old shipwreck found earlier this month off the coast of Koh Kong province. Divers found the 70-metre-long wreck on April 4 about a mile from Koh Chhlam island, according to Navy officials. Deputy Navy Commander Tea Sokha,