Phnom Penh: The Credit Guarantee Corporation of Cambodia (CGCC) has extended credit guarantees totaling US$271 million to micro, small, and medium-sized enterprises (MSMEs) as of February 2025 to aid in their business expansion.
According to Agence Kampuchea Presse, by the end of February 2025, CGCC had approved 3,979 guaranteed accounts, amounting to US$271.14 million. This initiative targets 3,792 MSMEs and 187 large businesses in Cambodia, with 1,834 of these businesses being women-owned.
H.E. No Lida, CEO of CGCC, highlighted the importance of credit guarantee mechanisms in assisting MSMEs that require funds for production chain expansion. He noted that some small and medium-sized enterprises with potential face challenges in securing credit due to a lack of collateral or perceived risk, which banks and microfinance institutions typically avoid. In response, the Cambodian government, through CGCC, steps in to guarantee the credit for these enterprises.
The CGCC scheme collaborates with participating financial institutions, including the state-run Agriculture and Rural Development Bank and SME Bank, to provide credit for working capital investment and business expansion to SMEs.
Established in November 2020, CGCC is Cambodia's preferred credit guarantee institution, aimed at improving financial inclusion and fostering SME growth. Its credit guarantee is crucial in helping MSMEs secure necessary financing, enabling them to seize investment opportunities, boost employment, and increase income.