PHNOM PENH: Credit Guarantee Corporation of Cambodia (CGCC) and Bridge Bank have officially announced the partnership on the Credit Guarantee Agreement to provide support to micro, small, and medium enterprises (MSMEs) and large enterprises, in easier access to bank loans with CGCC’s Guarantee for business development.
The signing ceremony on the Credit Guarantee Agreement was held here on Feb. 7 between Mr. Wong Keet Loong, Chief Executive Officer of CGCC, and Mr. Richard Liew, CEO of Bridge Bank.
The partnership between CGCC, a state-owned enterprise, under the financial and technical guidance of the Ministry of Economy and Finance, and Bridge Bank, a commercial bank with a commitment to support the local MSMEs, will enable Bridge Bank to expand the opportunity to be confident in providing the loans to financially viable businesses but lack of collaterals, by using credit guarantees of CGCC, a press statement pointed out.
Mr. Wong Keet Loon said the partnership with Bridge Bank opens up a new channel for CGCC to reach out to support the Bank’s SMEs in getting loans when they lack collateral.
“Our participating FIs will evaluate the eligibility of SMEs for guaranteed loans as they know the financial needs and repayment capability of the borrowers. Our guarantees are vital to ensure the continuous supply of credit into the market to support more economic activities,” he said.
For his part, Mr. Richard Liew said that SMEs are one of the backbones of Cambodia’s economy, contributing significantly to the country’s GDP growth as well as providing employment opportunities to all Cambodians. However, some of these businesses often face challenges in accessing financing to support their growth.
That is where this partnership between Bridge Bank and CGCC comes in, he underlined.
“Through this MoU, we hope to provide MSMEs with easier access to loans by leveraging CGCC’s expertise in credit guarantee services. This will help to mitigate the risk of default and enable us to offer more competitive loan rates, thus increasing the affordability of credit for MSMEs,” Mr. Richard Liew said.
Through this agreement, Bridge Bank has now become one of the 28 Participating Financial Institutions (PFIs) of CGCC, committing to assisting business entities in line with the Government’s direction to support MSMEs. CGCC and Bridge Bank strongly believe that this partnership will be one of the key instrumentals in addressing the financing gap faced by many MSMEs and will contribute to the growth and development of the country’s economy.
CGCC is the only credit guarantee corporation in Cambodia, established by the decision of Samdech Akka Moha Sena Padei Techo Hun Sen, former Prime Minister of Cambodia, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance.
The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia.