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$2.3 million approved by SME Bank

 

Date: 2020-06-23

News Type: Marketing News

 

SME Co finance Scheme has received 13 applications with a total loan approval value of $2,338,000. KT/Chor Sokunthea

 

The SME Co-Financing Scheme (SCFS) has received 13 applications with a total loan approval value of $2.338 million as of June 11, a senior executive officer of the SME Bank of Cambodia told Khmer Times.

Tan Dexter, chief executive officer of SME Bank of Cambodia, said the total amount of  disbursement was $1.908 million and the balance of $430,000 is expected to be drawn down with the next few days.

He said that the loans are offered to all the business and activities that list documents under sub decree 124 within several sectors: food manufacturing and processing; manufacturing of goods for the tourism sector; manufacturing of finished products, spare parts or assembly parts to supply other manufacturers; research and development associated with information technology (IT) or the supply of IT-based services; enterprises located in small and medium cluster zones and enterprises developing cluster zones.

“Many participating financial institutions (PFIs) have started to market the SCFS. In the beginning of 2020, we understand that PFIs are busy in restructuring the existing customer loans arising from the COVID 19. With the new SCFS guideline on lending criteria, repayment terms, loan tenure and sector coverage we are optimistic that the take-up rate for  SCFS will increase over the next few months,” said Dexter.

“We are actively engaging all stakeholders in promoting the SCFS. Many PFIs and the SME Bank had initiated promotional campaigns on their websites and Facebook pages. SME Bank has embarked on many promotional activities on the National Television of Kampuchea and some radio stations to create SCFS awareness,” he added.

“In addition we have printed SCFS posters and distributed to PFIs as well as trade associations Cambodia Women Entrepreneurs Association (CWEA), Federation of Associations
for Small and Medium Enterprises of Cambodia,

Young Entrepreneurs Association of Cambodia (YEAC) and others to enhance awareness. Rest assured that the SME Bank is working closely with PFIs to see success for the SCFS,” Dexter added.

He said that the loan amount for SCFS is $100 million. The amount will be made up of $50 million from the SME Bank of Cambodia and the remaining $50 million from the PFIs.

Last month, the government approved the extension loan tenures to seven years from four years under a revised agreement between the SME Bank and Participating  Financial Institutions (PFIs).

The government’s SME Co-Financing Scheme aims to provide low-interest loans to bolster and develop local SMEs in sectors such as manufacturing and handicrafts to boost local production and fulfill domestic consumption.

The SCFS has raised $97.5 million from 33 PFIs – in addition to the $50 million grant from the government. Under the current agreement the government-funded scheme provides half of the approved loan amounts with each individual financial institution providing the other half.

SMEs can borrow up to $200,000 for working capital and up to $300,000 for investment capital with a maximum interest rate of 7 percent per annum, a repayment period of seven years and collateral dependent on the criteria of individual PFIs.

 

Source from:KHMER TIMES

 

 

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