Cambodia: Government officially launches a $100 million Fund for SMEs

• Apr 03, 2020

The Ministry of Economy and Finance has officially launched and implemented the government’s Co-Financing Scheme for Small and Medium Sized Enterprises in the Kingdom, according to a statement from the ministry. It said that the fund is now available for all prioritised SMEs sector.

The government’s SME Co-Financing Scheme, aims at providing loans with low interest rates to bolster and develop the Small and Medium Sized Enterprises in the prioritised sector, such as manufacturing and handicraft to boost the local production and fulfill domestic consumption.

The capital of the SME Co-Financing Scheme, amounts to $100 million and is jointly funded by the SME Bank of Cambodia and participating commercial banks and microfinance institutions.

There are 33 financial institutions (23 commercial banks, and 2 specialized banks, 5 MDIs, and 2 MFIs) participating with the government’s SME Co-Financing Scheme.

“For those small enterprises who want to apply for this loan, they must be a registered SMEs, have a turnover from 250 million riel ($62,500) per annum or employ from 10 to 50 people. However, for medium sized enterprises, they must have an annual turnover from $175,000 or employ 51 to 100 people,” the statement read.

SMEs can borrow up to $200,000 for working capital and up to $300,000 for investment capital. The maximum interest rate is 7 percent per year, and the repayment period is four years. The collateral is dependent on the criteria of participating financial institutions.

Source: https://www.khmertimeskh.com/50709443/government-officially-launches-a-100milion-fund-for-smes/