Phnom Penh: Mr. Kao Thach, Director General of the Bank for Rural Development and Agriculture, on July 13, 2020, participated as a speaker in the presentation program on the possibility of providing credit to farmers raising fish, chickens, ducks and growing vegetables and to Handicrafts of small and medium enterprises in the field of agricultural product processing, agro-industry and agriculture to nearly 200 people engaged in agriculture under the coordination of Svay Rieng Provincial Administration.
The event was also presided over by Mr. Seng Seila, Deputy Governor, Mr. Men Vibol, Governor of Svay Rieng, and was also attended by representatives from the Ministry of Agriculture, Forestry and Fisheries, as well as representatives from departments and authorities. Districts around the province as well.
On that occasion, Mr. Kao Thach informed all the participants that with the support of the Ministry of Economy and Finance and the attention of the Royal Government with Samdech Techo Hun Sen as Prime Minister. The Bank for Rural Development and Agriculture has been acting as an intermediary for the management and implementation of the Royal Government's special financing program of up to US $ 50 million to provide low-interest loans to fish farmers. Chickens, ducks, vegetables and handicrafts, small and medium enterprises in the field of processing of agricultural products, agro-industry and agriculture, so that you can expand your business and improve your production chain in order to create more jobs, strengthen Competitiveness and expansion of domestic production bases to boost both exports and reduce imports at a time when the Cambodian economy is facing a number of challenges stemming from COVID-19 and EBA.
Mr. Kao Thach added that in principle, this special financing program will provide loans from US $ 5,000 to US $ 300,000 with a low interest rate of 5% annually for working capital (short term 2 years). And for investment capital (7-year term) at an interest rate of 5.5% per annum.
In addition, with regard to credit collateral under this special program, Mr. Kao Thach stated that the Bank for Rural Development and Agriculture can provide up to 80% of the value of collateral, which is real estate, and the acceptance of collateral is also More flexibility by accepting: equipment – machinery, inventory, a letter of guarantee from the buyer or other guarantees, certificates of deposit other than real estate, etc.
He added that in addition to the implementation of the special financing program of the Royal Government up to 50 million US dollars, the Bank for Rural Development and Agriculture also has other credit products with favorable interest rates for farmers. Also.
He also encouraged farmers, in case you can not meet the requirements of the Royal Government's special financing program, you can consider borrowing from other loans of the Rural Development Bank and Agriculture.
Mr. Kao Thach, Director General of the Bank for Rural Development and Agriculture, requested the farmers, fish farmers, animal husbandry, vegetable growers to prepare a clear planting plan to supply the market as needed and sustainable to participate. Reduce imports from neighboring countries.