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 the individual guarantee scheme, effective after the “Business Recovery Guarantee Scheme (BRGS),” which was launched on Mar. 29, 2021 and expired on June 30, 2025, based on the approval of H.E. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance.
Under ESGS, CGCC increases the maximum guarantee coverage up to 90 percent of the total loan principle, sets the minimum guarantee fee as low as 0.75 percent of the outstanding guaranteed amount, and offers other favourable conditions to support Participating Financial Institutions (PFIs) on expanding the necessary loan disbursement to Micro, Small, and Medium Enterprises (MSMEs) and large firms, aiming to stimulate the economic growth, in line with the Pentagonal Strategy – Phase 1 of the Royal Government of Cambodia.
CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance, with the primary mission of providing credit guarantees to enhance financial inclusion and support the development of small and medium-sized enterprises.
CGCC’s products and services 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 in a total of 4,877 Guaranteed Accounts, amounting to approximately US$294.32 million.
Mr. No Lida, CEO of CGCC, has recently stated that credit guarantee mechanisms have been instrumental in helping promising MSMEs secure the funding to expand their production chains and operations.
“Many potential small and medium-sized enterprises are unable to obtain credits from banks and microfinance institutions due to a lack of collateral or a certain level of risk. In this case, the Cambodia government, through the CGCC, steps in to help guarantee the credit of small and medium-sized enterprises,” he said.