The Ministry of Economy and Finance, on February 14, 2022 allocated US$$ 100 million to two state-owned banks to help promote agriculture and small and medium enterprises.
The US$ 100 million will be provided to the Rural Development and Agriculture Bank (ARDB) for US$ 50 million for agricultural loans and the SME Bank for small and medium enterprises in Cambodia with low interest rates.Through this special financing program, enterprises in the agricultural and agro-industrial sectors are able to strengthen their businesses and improve their production chains in order to strengthen competitiveness, maintain food security and boost exports in the context of the COVID-19 crisis.
Deputy Prime Minister Aun Porn Moniroth said that the Cambodian government prioritizes the development of small and medium enterprises, especially those in key sectors such as agriculture, agro-industry, food processing, manufacturing, apparel and tourism.
The Deputy Prime Minister added that small and medium enterprises not only contribute to supporting Cambodia's economic growth and job creation, but also play an important role in increasing the resilience of the national economy to the crisis. The small and medium enterprises account for about 98% of all businesses in Cambodia and contribute about 58% of GDP and provide employment for about 73% of the total labor force in Cambodia. H.E Kao Thach, the Royal Government Delegate in charge of ARDB, said that the goal of using the additional US$ 50 million to continue to support the Bank's role as a leading policy bank will encourage all actors in the production and agricultural chain.
H.E Kao Thach added that in 2022, the fund will be used for the following purposes: US$ 10 million in rice financing, US$ 20 million in direct financing and US$ 20 million in risk-sharing co-financing.
For SME Bank, an additional US$ 50 million will be used to continue the second phase of the co-financing project to support small and medium enterprises, bringing the government's contribution to US$120 million
By Pheara!
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