Phnom penh: Credit Guarantee Corporation of Cambodia (CGCC) launched the US$200 million 'Economic Stimulus Guarantee Scheme (ESGS),' effective from July 1, 2025. ESGS is an individual guarantee scheme initiated following the conclusion of the 'Business Recovery Guarantee Scheme (BRGS),' which commenced on March 29, 2021, and ended on June 30, 2025. This initiative received approval from H.E. Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance.
According to Agence Kampuchea Presse, ESGS significantly enhances the maximum guarantee coverage to 90 percent of the total loan principle. It sets the minimum guarantee fee at 0.75 percent of the outstanding guaranteed amount. The scheme aims to support Participating Financial Institutions (PFIs) in expanding necessary loan disbursements to Micro, Small, and Medium Enterprises (MSMEs) and large firms, aligning with the Pentagonal Strategy - Phase 1 of the Royal Government of Cambodia to stimulate economic growth.
CGCC operates as a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance. Its primary mission is to provide credit guarantees to enhance financial inclusion and support the development of small and medium-sized enterprises. CGCC's offerings include loan guarantees in the banking sector, bond guarantees in the securities sector, and the Entrepreneurship Program Initiative of CGCC (EPIC).
As of the end of May 2025, CGCC has approved guarantees on business loans across 4,877 Guaranteed Accounts, totaling approximately US$294.32 million. Mr. No Lida, CEO of CGCC, has emphasized that credit guarantee mechanisms are crucial in assisting promising MSMEs in securing funding to expand their production chains and operations. He noted that many potential small and medium-sized enterprises struggle to obtain credits due to a lack of collateral or perceived risks, prompting the Cambodian government to intervene through CGCC to guarantee their credit.