The Royal Government of Cambodia plans to provide $250 million through the Cambodian state-run SME Bank under the co-financing scheme to support the SME sector in Cambodia to have access to financing to further develop their businesses.
The fund was unveiled in a press conference on the economy recovery strategy in the new normal held on December 14 at the government’s spokesman unit.
Phan Phalla, Secretary of State of the Ministry of Economy and Finance, stated that the government already implemented two rounds of the co-financing scheme, with an amount of more than $200 million, in which small and medium enterprises in many priority sectors received the budget package for development of their businesses.
Under the economic recovery strategy, the government has designed a new budget to help the SMEs in the priority sector, Phalla, who is also Secretary-General of the Committee on Economic and Financial Policy, said.
The fund was made after seeing the high demand of financial service for the SMEs in Cambodia to restore business in the Covid-19 pandemic, he said.
“Seeing the actual needs in small and medium enterprises, the SME Bank of Cambodia is currently requesting additional funding from the government to continue providing funds in cooperation with partnered banks,” Phalla said.
“The next phase of the project is planned for an additional $250 to help affected enterprises to receive the budget to further develop their businesses to compete and supply their goods in the market,” he said.
The government has already provided two rounds of co-financing to support small and medium enterprises.
In the phase of its kind, a budget of $100 million was disbursed through SME bank to SMEs, starting in April 2020 and completed in October 2020.
The second phase has a total budget of $140 million.
There are 26 participating financial institutions in the co-financing project, including 21 commercial banks, 1 specialized bank, and 3 deposit-taking microfinance institutions, and 1 microfinance institution.
Small and medium enterprises which are in need of credit can apply for a loan under the co-financing scheme at any participating financial institution by complying with the terms of the co-financing project and the lending conditions of each participating financial institution.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.