MICROCAPITAL BRIEF: Cambodia Implements $100m Co-financing Scheme for Small and Medium-sized Enterprises (SMEs) in Partnership with Private Banks, Microfinance Institutions

Through its SME Bank, Cambodia’s Ministry of Economy and Finance is carrying out a Co-financing Scheme for Small and Medium-sized Enterprises (SMEs) in partnership with about 30 banks and microfinance institutions (MFIs). The program, which has a budget of USD 100 million, is open to registered SMEs active in priority sectors such as manufacturing and handicraft. To apply, a firm must “have a turnover from KHR 250 million (USD 62,500)” and 10 to 100 employees. Successful applicants may borrow up to “USD 200,000 for working capital and up to USD 300,000 for investment capital” for four years at an interest rate of no more than 7 percent per year. The goal of the program is to “bolster and develop the small and medium-sized enterprises” in order to increase “local production and fulfill domestic consumption.”

By Simrun Kothari, Research Associate

Sources and Additional Resources

Khmer Times article on Co-financing Scheme launch
https://www.khmertimeskh.com/50709443/government-officially-launches-a-100milion-fund-for-smes/

Khmer Times article on SME Bank launch
https://www.khmertimeskh.com/50569203/sme-bank-to-come-online-this-year/

Cambodia’s Ministry of Economy and Finance press release
https://ibccambodia.com/wp-content/uploads/2020/04/Government-Officially-Launches-a-100-Million-Fund-for-SMEs.pdf

More news from MicroCapital on Cambodia
https://www.microcapital.org/?s=cambodia

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