Loans worth $54.2 million were approved by state-owned Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) for 350 businesses under the Tourism Recovery Co-Financing Scheme (TRCS) as of August 31, 2023.

This accounted for 36.1 per cent of the $150 million co-financing project fund allocated by the government to aid and promote the growth of the tourism sector, which was heavily impacted by Covid-19.

According to SME Bank, 29 per cent of the loan recipients comprised hotel operators, 25 per cent (guesthouse), 31 per cent (restaurants) and 15 per cent (tourism-related businesses).

Of the total, 41 per cent consist of women entrepreneurs.

The $150 million scheme, approved by the Ministry of Economy and Finance on May 17, 2022, is a joint funding contribution where $75 million was allocated by the government and the remaining $75 million was raised by over 20 participating financial institutions.

The participating financial institutions include ACLEDA Bank, Canadia Bank, Sathapana Bank, Foreign Trade Bank of Cambodia, ABA Bank, LOLC, Wing Bank, Amret and CIMB Bank.

The scheme allows tourism business operators to apply for loans from participating financial institutions, which are partners of SME Bank with a maximum interest rate of 6.5 per cent per annum and a loan tenure of up to seven years.

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Author: Hin Pisei

Publication date: 05 September 2023

News: Phnom Penh Post