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

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the