Logo of Phnom Penh Post newspaper Phnom Penh Post - Business credit guarantee plan remains in place

Business credit guarantee plan remains in place

Content image - Phnom Penh Post
The BRGS aims to widen access to formal loans from participating financial institutions (PFI) for working capital, investment and business expansions. Heng Chivoan

Business credit guarantee plan remains in place

The finance ministry has authorised the extension of the Credit Guarantee Corporation of Cambodia Plc’s (CGCC) $200 million Business Recovery Guarantee Scheme (BRGS) beyond December 31, 2022, until all funds have been utilised, according to the CGCC.

The scheme aims to widen access to formal loans from participating financial institutions (PFI) for working capital, investment and business expansions.

The terms of the BRGS have also been updated, including the maximum guarantee amounts for differing categories of businesses, CGCC noted in a statement.

“CGCC looks forward to working closely with all stakeholders to support the growth of businesses with the BRGS,” it added. “CGCC’s credit guarantee under BRGS will continue to act as collateral for 70-80 per cent of the loan amount borrowed from the PFIs, thus, reducing the physical collateral required from the borrowers.”

The statement disclosed that loans, mostly unsecured, totalling about $89 million were guaranteed by the state-owned enterprise as of December 31 under the BRGS, which was launched on March 29, 2021.

Cambodia Post Bank Plc, one of the PFIs, accounted for roughly $1 million of that, all of which went to small- and medium-sized enterprises (SME), confirmed its CEO Toch Chaochek, who welcomed the extension of the BRGS, hailing the scheme as a lifeline for SMEs who may have struggled to procure formal loans.

“The scheme has been a big help for SMEs who’ve been facing funding shortages and don’t have the collateral to obtain loans for business expansions or just to keep from going under,” he said.

In a previous interview with The Post, In Channy, president and group managing director of ACLEDA Bank Plc, another PFI, commented that the BRGS is a step forward to increasing the supply of loans to SMEs.

“The credit guarantee is crucial, especially for those customers who have distinguished business plans, but don’t have enough collateral for the full amount of loans that they may need.

“It’ll help customers, borrowers and entrepreneurs grow their businesses [by giving them] loan security,” he said.

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Kampot curfew imposed to curb ‘gang’ violence

    Kampot provincial police have announced measures to contain a recent spike in antisocial behaviour by “unruly’ youth. Officials say the province has been plagued by recent violence among so-called “gang members”, who often fight with weapons such as knives and machetes. Several social observers have

  • PM outlines plans to discuss trade, policy during US visit

    Prime Minister Hun Manet is set to meet with senior US officials and business leaders during his upcoming visit to the US for the UN General Assembly (UNGA), scheduled for September 20. While addressing nearly 20,000 workers in Kampong Speu province, Manet said he aims to affirm

  • Manet touches down in Beijing for high-level meetings

    Prime Minister Hun Manet arrived in Beijing on September 14 for his first official visit to China, where he is slated to attend the 20th China-ASEAN Expo and meet other leaders including Chinese President Xi Jinping. Upon his arrival, Manet laid a wreath at the Monument