PHNOM PENH: The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of US$174 million as of February this year to 2,070 businesses as their working capital for expansion.

In a factsheet issued on Monday, CGCC said as of Feb. 29, 2024, the outstanding guaranteed loan was US$120 million while the outstanding guaranteed amount was US$86.9 million.

There are 1,918 micro, small and medium enterprises (MSMEs) and 152 large businesses in Cambodia, the report said, adding that 881 of businesses were women-owned. The CGCC scheme involves 27 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020 with a state budget of US$200 million, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs.

Smooth loan distribution has boosted entrepreneurship and financial inclusion, said H.E. Mey Vann, Secretary of State at the Ministry of Economy and Finance.

“The CGCC has played a key role in serving the needs of SMEs in Cambodia, which are struggling in the wake of the Covid-19 pandemic and the inflation crisis, and need credits from banks for their businesses,” he said.