Logo of Phnom Penh Post newspaper Phnom Penh Post - Government doubles RDB miller lending

Government doubles RDB miller lending

Government doubles RDB miller lending

THE government has doubled its contribution to rice milling loans offered by the Rural Development Bank, top government officials said.

“This year, the government has offered US$36 million [from $18 million] for rice millers to buy paddy from farmers,” said Mey Vann, director of financial industry and representative from the Ministry of Economy and Finance during a press conference on Friday.

“The money is a small amount compared to market demand of $350 million. However, it can keep prices stable as they often fluctuate because of buyers from neighbouring countries.”

The government, he said, was also preparing a $25 million fund to guarantee 50 percent of credit offered to the rice industry by commercial banks.

“We are preparing to set up credit-insured fund with 105,000 million riel guarantee for banks offering loans to rice millers,” he said.

However, Mey Vann said that the policy was not set to be implemented this year as it required in-depth preparation. “We are working with World Bank and IFC and we schedule to carry [it] out in 2012,” he said.

RDB President Son Koun Thor encouraged cooperation from the private sector, especially commercial banks, in offering agricultural loans.  

Millers aim to meet the government’s target of exporting one million tonnes of milled rice from Cambodia by 2015.

President of Cambodia Rice Millers Association, Phou Puy, said: “Right now, rice millers are using their own capital [to buy paddy] which is made up of about $75 million and another $18 million from RDB - it is not enough with the increased numbers of orders from global markets,” he said.  

Including paddy purchased with $25 million of loans from commercial banks, he said the association has bought about 230,000 tonnes of unmilled rice during the harvest season so far.

In Channy, president and CEO of Acleda, said that the bank had offered more than $100 million to the agricultural sector in 2010 - representing 50 percent of the total lent to the sector by banks.

MOST VIEWED

  • First Cambodian woman graduates from Japan’s NDA military academy

    A few years ago, Meach Sithyka Jessica became the first-ever Cambodian woman to graduate from the US Military Academy at West Point, and since then her courage and determination has served as an inspiration for other Cambodian women. Similarly, Ly Chansocheata became the first Cambodian

  • Construction begins on $1.5B Kampot seaport

    The International Multi-Purpose Logistics and Port Centre, principally invested by Kampot Logistics and Port Co Ltd and projected to cost $1.5 billion, has officially broken ground in Bokor town, Kampot province. The multi-purpose logistics and port centre, located in Prek Tnaot commune, will be built on

  • Cambodia eyes key role in electronics, auto hubs in SEA

    Two roadmaps, part of the LDC’s economic diversification plan, were designed to see it through its migration process, but experts say the journey might be arduous, particularly in the presence of two established hubs in the region By 2028, Cambodia hopes to have exited the

  • Hun Neng, lawmaker and PM’s brother, passes away aged 72

    Hun Neng, chairman of the 4th Commission of the National Assembly, has passed away from heart disease at the age of 72 on the afternoon of May 5, according to the Ministry of Information. Hun Neng is the older brother of Prime Minister Hun Sen, and was

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM meets with US business giants

    Prime Minister Hun Sen has met with a number of major US companies who have expressed interest in investing in Cambodia, in a meeting convened by the US-ASEAN Business Council (US-ABC). A delegation of companies – including Amazon, Meta, Chevron, ConocoPhillips, ExxonMobil, Ford, Visa and Pernod