The SME Bank of Cambodia has approved loans to an estimated 532 customers, totaling $67.4 million as of end September this year. These loans are from the SME Co-Financing Scheme.
Dexter Tan, chief executive officer of the SME Bank of Cambodia said that out of the total approved loan, $63.4million has been disbursed to 508 customers.
He said that the take up rate for SCFS after 6 months since the bank’s inception has been very encouraging with more than $67.4 million or about 68 percent being disbursed from the SCFS $100 million funds.
“We are confident that the SCFS fund will be fully exhausted before the close of the fund date in March 31, 2021. The active Participating Financial Institutions (PFIs) contributions have been instrumental for the success of the SCFS,” Tan said.
“Out of 33 PFIs, 22 PFIs have submitted loan applications, among whom are 17 commercial banks, 3 microfinance deposit taking institutions, 1 microfinance institution and 1 specialised bank,” he added.
The SME Bank of Cambodia will provide better and affordable access to financing for SMEs in the key priority sectors such as food manufacturing and processing, manufacturing of local consumption goods, waste recycling and production of goods for the tourism sector, manufacturing of finished products, spare parts or assembly parts to supply other manufactures, research and development associated with information and technology or the supply of IT-based services and, enterprises located in SME cluster zones & enterprises and development of these cluster zone.
The loan amount for SCFS is $100 million. The amount is made up of $50 million from the SME Bank of Cambodia and the remaining $50 million is from the PFIs.
PRASAC Executive Vice-President and Chief Marketing Officer Say Sony said that as of September this year, PRASAC has disbursed $10 million to 110 SME clients. With the SCFS, PRASAC reached the maximum limit for its $10 million disbursement, Sony said.
“Our target for the first stage is $10 million. However, we applied for additional allocations and got approval for a further $10million for the second stage,” Sony added.
In May, the government approved extension of loan tenures from four years to seven years under a revised agreement between the SME Bank and PFIs, and the government will make the Credit Guarantee Scheme (CGS) operational by this month or November.
The government has a reserve budget of $500 million of which $200 million is for the CGS and $300 million is to be allocated to the SME Bank of Cambodia through the SME CO-Financing Scheme (SCFS).
Aun Pornmoniroth, Minister of Economy and Finance, and the chair of the Committee for Policy Action for the Promotion of Small and Medium Enterprises, said at a committee meeting on September 23 that to have consistency between the ministry and relevant institutions on the implementation of the policy to support the SMEs with efficiency, the SMEs definition has been redefined based on the number of staff, annual turnover or assets in the field of agriculture, industry, service and commerce.
The chair of the Committee for Policy of Action for the Promotion of SMEs also approved to eliminate instances of overlapping certificates for the SMEs. The licensing and certificate which overlap will be deleted or adjusted based on the rationalisation. The key sector to abolish and adjust the licensing and certificate includes the tourism sector and food manufacturing from farm to table.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.