PHNOM PENH: The state-owned Credit Guarantee Corporation of Cambodia (CGCC), Cambodia Rice Federation (CRF), and Participating Financial Institutions (PFIs) signed an agreement on Rice Export Guarantee Scheme (REGS) which help millers expand their scope to stockpile rice for milling, processing, exporting, and increasing local value-added products.
The signing ceremony was held on May 10 under the presidency of H.E. Ros Seilava, Secretary of State at the Ministry of Economy and Finance with the participation of more than 70 people who are members of the Board of Directors of CGCC, the management and members of CRF, the management and staff of PFIs and CGCC.
The ceremony was held to seal the official cooperation between CGCC, CRF, and PFIs on the Rice Export Guarantee Scheme (REGS), which aims to increase the productivity and competitiveness of Cambodia’s rice industry and boost rice exports in line with the Royal Government of Cambodia’s policy on agriculture.
CGCC launched the US$30 million REGS as a portfolio guarantee scheme, having seven financial institutions participating in this scheme, including AMK Microfinance Institution, Canadia Bank, Foreign Trade Bank of Cambodia (FTB), Maybank (Cambodia), Prince Bank, Sathapana Bank, and Wing Bank. (Cambodia).
Speaking at the ceremony, H.E. Ros Seilava said that the launch of the US$30 million REGS project is a reflection of the Royal Government’s strong commitment to support Cambodian rice production and rice exports through the public credit guarantee scheme, of which CGCC is the operator, by providing guarantee coverage of 80 percent on the maximum loan of up to US$3 million.
“The REGS will support the financing need of rice exporters and rice millers to purchase paddy from farmers to produce rice for exports in line with the Royal Government of Cambodia’s policy to increase rice production and exports,” he said.
Mr. Chan Sokheang, President of CRF said the rice credit guarantee package will help millers expand their scope to stockpile rice for milling, processing, exporting, and increasing local value-added products derived from its by-products milling all rice to other sectors such as aquaculture, livestock farming.
According to Mr. Wong Keet Loong, CEO of CGCC, the scheme comes with special features – lower guarantee fees, higher guarantee covers and loan interest rate not exceeding 11 percent p.a.
“We are supporting the aspirations of the Royal Government of Cambodia to export 1 million tonnes of rice by 2025,” Mr. Wang said.
CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises.