The president and group managing director of ACLEDA Bank Plc., Dr. In Channy has announced that the bank has reserved nearly $600 million for lending to the small and medium enterprises (SMEs) sector in Cambodia in 2021.
Speaking to reporters following ACLEDA’s Strategic Implementation Year 2021 meeting in Siem Reap, Dr. In Channy said that credit for SMEs was affordable last year and the bank would continue supporting SMEs this year.
He added that besides its direct lending programmes to SMEs, ACLEDA bank also participated with the SME Bank of Cambodia in the SME Co-Financial Scheme (SCFS).
The SCFS was capitalised at $100 million upon its launch on April 1, 2020. That capital was jointly funded by the SME Bank of Cambodia and 33 participating institutions (PFIs). The PFI group includes 24 commercial banks, six specialised banks, and three MFIs.
He also noted that ACLEDA bank’s contribution to the SCFS was $23 million.
“I think Ministry of Economy and Finance will continue this scheme in order to inject funds into the SME sector by working with the participation of private financial institutions.”
“If we look at the global economy in both developed and developing countries, SMEs are the engine that drives growth. When there are more SMEs, there are more jobs.
SMEs support themselves and boost national growth by paying taxes. When SMEs are healthy, so is the economy” Dr. Channy added.
The SCFS fund was fully subscribed by mid-October 2020, four months earlier than anticipated, according to a senior executive of SME Bank of Cambodia with the average loan granted being $122,514. The loan minimum was set at $16,800 and the maximum at $300,000.
Tan Dexter, chief executive officer of SME Bank of Cambodia, said that SME Bank loans are available to all small and medium enterprises (SMEs) excepting those in agriculture. He noted the SCFS fund has benefited 753 SMEs.
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