Phnom Penh, August 13, 2020: The Ministry of Economy and Finance (MoEF) hosted a meeting in collaboration with The Association of Banks in Cambodia (ABC). The meeting´s subject was a discussion on the new proposed Credit Guarantee Scheme, which the Royal Government of Cambodia is currently planning to implement.
The Credit Guarantee Scheme is supported by the Asia Development Bank (ADB) and the WorldBank (WB). The scheme is currently planned to start with a funding of $200 million USD and is scheduled to take effect at the end of 2020.
At the meeting, a number of banks, which are experienced in risk sharing facilities and/or Credit Guarantee Schemes discussed and advised the Government on how to most effectively implement such scheme in Cambodia´s financial sector. From the MoEF, the meeting was presided over by H.E. Ros Seilava, Secretary of State, H.E. Tep Phiyorin, Under Secretary of State and H.E. Chheang Vannarith, Director General of the General Department of Policy. ABC was represented by ACLEDA Bank, Bank of China, Canadia Bank, Foreign Trade Bank and Phnom Penh Commercial Bank. Also members of the Cambodian Microfinance Association (CMA) attended the meeting.
The Credit Guarantee Scheme will help especially SMEs to attract credit easier at a lower cost without the necessity of collateral. The private sector and the financial institutions represented by their respective association, ABC and CMA, are in full support of the Government´s initiative led by the MoEF.