Government Extends Business Recovery Guarantee Scheme

The Credit Guarantee Corporation of Cambodia (CGCC) of the Ministry of Economy and Finance has extended the Business Recovery Guarantee Scheme (BRGC) from Jan. 1, 2023 until the US$200-million scheme is fully utilised.

In a statement issued on Jan. 3, the CGCC said that it has received the approval from H.E. Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance on the extension of the BRGC by updating some scheme features, including the scheme period, the definition of the micro, small and medium enterprises (MSMEs) and large firms, and the maximum loan amount for each guarantee.

BRGC aims to support businesses, including MSMEs and large firms, to enhance their access formal loans from Participating Financial Institutions for working capital, investment, and business expansion.

BRGC, with a scheme size of US$200 million, was first launched from Mar. 29, 2021 to Dec. 31, 2022.

As of Dec. 31, 2022, a total loan of approximately US$89 million, of which, most of the loan do not have collateral, is guaranteed by CGCC under the BRGC.

CGCC’s credit guarantee under the BRGC will continue to act as collateral for 70 to 80 percent of the loan amount borrowed from the Participating Financial Institutions, thus, reducing the physical collateral required from the borrowers.

The Participating Financial Institutions include CLEDA Bank, AMK MFI, APD Bank, Cambodia Post Bank, CANADIA Bank, Phillip Bank, and Prince Bank.

Source: Agency Kampuchea Press