Three private institutions have come together to provide loans to small and medium enterprises (SMEs) to boost financial access for the business expansion and sustainability amid the global economic downturn.

The agencies, Credit Guarantee Corporation of Cambodia (CGCC), Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC) and Wing Bank, signed a Memorandum of Understanding (MoU) on September 22, marking a strategic partnership to promote access to guaranteed loans for the development of SMEs in Cambodia.

The MoU at Wing Bank head office was presided by Wing Bank CEO Han Peng Kwang, CGCC CEO Wong Keet Loong and FASMEC presideng Te Taing Por, said CGCC in a statement.

“The cooperation provides support to SMEs, mainly FASMEC’s members, with greater access to finance despite collateral challenges while promoting financial literacy, including credit guarantees to FASMEC members across the country.

“The partnership between CGCC, FASMEC and Wing Bank demonstrates a shared commitment to promoting economic growth and development in Cambodia. By working together, the three organisations would help SMEs overcome financing challenges and unlock their potential including improving financial literacy to drive economic growth in the country,” CGCC mentioned.

According to FASMEC’s Taing Por, the collaboration is a significant step and good support for local SMEs, which are experiencing low collateral to obtain funds to support their businesses.

“We are delighted to collaborate with Wing Bank and CGCC because it provides an opportunity for FASMEC members, who lack collaterals in finance, to expand and grow their business,” he said.

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Author: May Kunmakara

Publication date: 25 September 2023

Source: The Phnom Penh Post