PHNOM PENH, Sept. 22 (Xinhua) -- State-owned Credit Guarantee Corporation of Cambodia (CGCC) on Wednesday launched a 50-million-U.S. dollar Co-Financing Guarantee Scheme (CFGS), aiming at supporting small and medium enterprises (SMEs).
The CFGS is a guarantee scheme that will act as collateral or security for 70-80 percent of the loan amount so that it will reduce the physical collateral required from the borrowers, a CGCC's press statement said.
The scheme will support the growth of new loans in the banking sector to enable SME owners to borrow from the CGCC's Participating Financial Institutions (PFIs), the statement said, adding that 19 PFIs will be able to offer higher loan amounts and the risk exposure will be shared with the CGCC up to 80 percent.
"The launch of the CFGS by CGCC is timely to provide additional support to the SMEs Co-Financing Scheme Phase II," Economy and Finance Ministry secretary of state and the CGCC's chairman Ros Seilava said in the statement.
The CFGS is the second credit guarantee scheme offered by the CGCC, the statement said, adding that the CGCC first launched the 200-million-dollar Business Recovery Guarantee Scheme in March 2021 to support the economic recovery during the COVID-19 pandemic.
To date, the CGCC has assisted 85 businesses by providing credit guarantees for their loan applications from the PFIs, the statement said.