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

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • 'Pandora Papers' expose leaders' offshore millions

    More than a dozen heads of state and government, from Jordan to Azerbaijan, Kenya and the Czech Republic, have used offshore tax havens to hide assets worth hundreds of millions of dollars, according to a far-reaching new investigation by the International Consortium of Investigative Journalists (