SME Bank, the Kingdom’s new bank with an initial capital of $100 million that’s set to provide financing for small and medium enterprises (SMEs), is expected to launch later this year as funds are already in place for activation, a senior finance ministry official said on Tuesday.
Ministry of Economy and Finance permanent secretary of state Vongsey Vissoth told reporters on Tuesday that the government has decided to allocate a $100 million budget to launch the bank.
He said the new bank will prioritise the development of Cambodian agro-businesses and SMEs that are linked to foreign direct investments, the tourism sector and tech start-ups.
“Any sector that can be a new engine for our economic growth will be supported by SME bank,” he said.
An initiative for setting up SME bank was introduced by Prime Minister Hun Sen in December 2017 in the hopes that it would boost local processing plants and strengthen export capacity.
The move comes after SMEs complained of a lack of financing and repeatedly called on the government to facilitate low-interest loans.