Cambodia provides financial support to SMEs and the agriculture sector
The loan will be provided to the private sector via the two state-owned Agricultural and Rural Development Bank and SME Bank.
Speaking at the official ceremony to launch the scheme, Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, said the US$100 million package will go towards supporting the recovery of the economy in the near future.
“The $100 million budget will be used to boost agriculture and small and medium enterprises, two of the most important sectors in the national economy, both in terms of job creation and in improving people’s livelihoods and promoting national economic growth,” he added.
The new funds will be equally divided between the Agriculture and Rural Development Bank and the SME Bank to be used to support the activities of SMEs in need and to support Cambodia’s rice sector, animal husbandry, crop production, as well as to support risk-sharing co-financing mechanisms with banks and financial institutions.
READ: Cambodia introduces COVID-19 protocols for businesses
As SMEs account for about 98% of all businesses in Cambodia and contribute about 58% of its GDP and employ about 73% of its total labour force, the government is making the promotion of the development of SMEs, particularly those in key sectors such as agriculture, agro-industry, food processing, components, tourism, a top priority, according to Khmer Times.