Logo of Phnom Penh Post newspaper Phnom Penh Post - Canadia ups agriculture loans

Canadia ups agriculture loans

Canadia ups agriculture loans

CANADIA Bank plans to quadruple its lending to the agriculture sector this year to US$100 million, particularly targeting rice millers, according to its President Pung Kheav Se.

The increase comes as Cambodia targets growth in the agriculture sector and demand for rice exports continue to increase, he said.

“We see the demand for rice export increasing every year, so we will offer loans of $100 million to improve processing quality of rice milling in order boost exports,” he said.

He was speaking following the signing of an agreement to provide payments of Electricite Du Cambodge bills through bank ATMs held at Canadia Tower on Friday.

Canadia had extended some $20 million in loans to the agricultural sector in the first four months of 2011, nearly total the $25 million in lending to the same sector during the whole of last year, he said.

Rice millers have stressed the need for more loans to purchase paddy for processing.

Cambodia Rice Millers Association President Phou Puy said yesterday that millers currently possessed capital of about $60 million and another $18 million from the Rural Development Bank to purchase paddy each year.

“It is not enough with the increased number of orders from international markets. So, we need about $700 million in loans to buy paddy for export,” he said.

Much of Cambodia’s paddy is exported to neighbouring countries unprocessed, but Phou Puy said increased capital would allow millers to process more paddy in the Kingdom.

ACLEDA Bank was the largest lender to the agriculture sector in 2009, the latest year for which National Bank of Cambodia statistics are available.

ACLEDA President In Channy said yesterday the bank plans to increase its agriculture lending to more than $160 million in 2011, from $100 million last year. Agriculture lending will constitute 16 percent of the bank’s total lending in 2011.

“This year we see lots of infrastructure improvements, such as agricultural irrigation ... a strong export market, and a clear national policy supporting the sector,” he said.

“We are not scared to offer loans to the [agriculture] sector because we trust government goals to increase rice exports.”

MOST VIEWED

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said

  • CPP: ‘Behave or Sokha suffers’

    The ruling Cambodian People’s Party (CPP) spokesman warned Kem Monovithya on Thursday that her attempt to damage “national reputation and prestige” would lead to her father, Kem Sokha, receiving even harsher punishment. Sok Eysan issued the warning as Monovithya, who is the court dissolved

  • Preah Sihanouk beach developments halted

    After receiving an order from Hun Sen, Minister of Land Management Chea Sophara led a team of experts and relevant officials to Sihanoukville to call a halt to the illegal development of a beach. The prime minister ordered the Prek Treng beach in Otres commune

  • Protests planned in New York as Hun Sen to attend the UN

    Prime Minister Hun Sen will speak at the United Nations General Assembly in New York this week. But US-based supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) plan to throw eggs at his car as part of a series of protests to coincide