Canadia Bank Plc has become the first member of the Credit Guarantee Corporation of Cambodia (CGCC) Business Takeover Guarantee Program (BRGC), which aims to support commercial lending to businesses of all sizes in need of financing for expansions. or working capital.
A partnership agreement was signed for this purpose on June 9 between the CEO of Canadia Bank Raymond Sia and the CEO of CGCC Wong Keet Loong.
During the signing ceremony, Sia said that Bank Canadia’s participation in CGCC’s “first program” was “yet another testament” of her institution’s support to clients and the wider community.
“Bank Canadia is honored to be the first bank to sign and formalize the partnership with CGCC to improve and increase financial access in our local business community, building on” the BRGS, he said. he declares. “This reflects our commitment to develop and support the business community in Cambodia. “
Wong said: “Our partnership with Bank Canadia will be very beneficial for CGCC to reach SMEs [small and medium-sized enterprises] throughout the country to support them in their loan applications when they do not have enough collateral to pledge at the bank.
“This partnership is an important step for CCVC to have a strong partner in achieving its goals,” he said.
Canadia Bank Chief Operating Officer Song Khenglay said, “The program enables owners of SMEs and large businesses to access Canadia Bank commercial loans with existing collateral or without additional collateral, under reserve from the bank’s valuation process.
“The duration of this program is from March 2021 to December 2021. Priority sectors such as agriculture, industry and services will have lower guarantee fees and clients can apply for loans under the BRGS program until to $ 1 million for large companies.
“To date, we have an encouraging business pipeline of over 35 clients who have applied for loans under the BRGS program, two of which have been approved by the CGCC,” she said.
The ministry launched the $ 200 million BRGS program on March 29 so businesses can take on larger loans with easier application processes to ensure vitality amid the current Covid-19 crisis.
Applicants must be predominantly Cambodian-owned in order to qualify for BRGS loans, he said in a press release, noting that the initiative is in line with government policy which deals with survival in the country. the crisis and support for the recovery of the economy during the pandemic.
The CGCC is the first credit guarantee company in the Kingdom, created by sub-decree n ° 140 ANKr BK of September 1, as a public enterprise placed under the technical and financial direction of the ministry.
The company’s collateral will serve as collateral or collateral for 70-80% of the loan amount borrowed from participating financial institutions and thereby reduce the physical collateral required from borrowers, he said.