The Ministry of Economy and Finance has officially launched and implemented Government co-financing scheme for SMEs in Cambodia. According to the notification of the ministry.
Priority enterprises are involved in agribusiness, food production and processing, manufacturing of souvenirs and handicrafts for tourists, processing of raw materials, and Research and information technology (including IT management services) and SMEs available in SMEs The average level in the clusters of special economic zones.
The government's SME co-financing scheme aims to provide loans with low interest rates to support and develop small businesses, and Medium in priority sectors such as manufacturing and handicrafts to promote domestic production and complement domestic consumption.
The co-financing of the SME project is up to US $ 100 million and is jointly funded by SMEs and Commercial banks and participating microfinance institutions.
Thirty-three financial institutions (23 commercial banks and 2 specialized banks, five MDIs and two microfinance institutions) participated in the project. Government Small and Medium Financing.
For those SMEs who want to apply for a loan, they must be a registered SME enterprise 250 million riels ($ 62,500) per year or 10 to 50 people. However, for a medium-sized enterprise, they need to have an annual income of US $ 175,000 or hire from 51 to 100 employees.
SMEs can borrow up to $ 200,000 for working capital and up to $ 300,000 for working capital. The maximum interest rate is 7% per year and the repayment period is four years. The collateral depends on the criteria of the participating financial institution.
Tep Taing, president of the Association of Small and Medium Enterprises of Cambodia, said funding with low interest rates was important to expand. Business and production.
Lack of financial support is one of the key issues that hinder the development of small and medium enterprises in Cambodia, he said. Therefore, with the presence of small and medium banks in Cambodia, we will have more options for businesses to get outside financial support. Trade finance sector.
According to the Ministry of Industry, Science, Technology and Innovation (formerly known as Ministry of Industry and Handicrafts), in 2019 out of 510,000 companies Register in Cambodia, with over 90% being small and medium enterprises. These businesses employ more than 1.2 million people and contribute more than 32% of the country's gross domestic product.
Ministry of Economy and Finance encourages SMEs to formally register and gain access to SMEs Cambodia $ 100 million. It will be run by the Royal Government and operated by the Ministry of Economy and Finance and its main goal is to help small and medium enterprises Grow. To do this, it will launch a comprehensive program to educate SME operators on banking and other financial issues.
Another part of the function of the Small and Medium Bank is to promote start-ups in the country in four areas: agriculture, manufacturing, tourism and agriculture. Start digitally for local market and export ៕ By: Beauty