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New Rice Credit Guarantee Scheme Signed to Elevate Cambodia's Rice Industry

PHNOM PENH, May 13, 2024 – A new Rice Export Guarantee Scheme (REGS) aimed at boosting rice productivity and export capabilities in Cambodia has been officially launched. The agreement, signed by the state-owned Credit Guarantee Corporation of Cambodia (CGCC), the Cambodia Rice Federation (CRF), and Participating Financial Institutions (PFIs), took place on May 10, under the oversight of Ros Seilava, Secretary of State at the Ministry of Economy and Finance.

The ceremony, held at Phnom Penh, was attended by over 70 stakeholders including board members from CGCC, management teams from CRF, PFIs, and CGCC staff.

The REGS, which has been allocated a US$30 million fund, is part of a broader strategy by the Cambodian government to enhance the rice sector's productivity and global competitiveness. This portfolio guarantee scheme involves seven financial institutions including AMK Microfinance Institution, Canadia Bank, Foreign Trade Bank of Cambodia (FTB), Maybank Cambodia, Prince Bank, Sathapana Bank, and Wing Bank (Cambodia).

During the ceremony, Ros Seilava highlighted that the launch of the REGS reflects the government's strong commitment to supporting the rice sector through public credit guarantees, with CGCC providing an 80% guarantee coverage on loans up to US$3 million.

“This initiative is geared towards assisting rice exporters and millers in purchasing paddy to produce and export rice, aligning with governmental policies aimed at ramping up rice production and exports,” stated Seilava.

Chan Sokheang, President of CRF, mentioned that the rice credit guarantee package is pivotal for millers, enabling them to stockpile, mill, process, and export rice while enhancing the value of local by-products used in other sectors like aquaculture and livestock farming.

Wong Keet Loong, CEO of CGCC, noted the scheme's benefits, including lower guarantee fees, high guarantee covers, and capped loan interest rates at 11% per annum. "We are committed to supporting the government’s goal of exporting 1 million tonnes of rice by 2025,” Wong said.

CGCC operates under the financial and technical guidance of the Ministry of Economy and Finance, with its core mission to enhance financial inclusion and bolster the growth of small and medium enterprises through credit guarantees.

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