$221 million in SCFS II loans granted to 1,834 businesses
More than 1,800 small and medium-sized enterprises (SMEs) have received $221 million in loans from the Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) under the SME Co-financing Program Phase II (SCFS II) , depending on the state. -owned company.
Of the 1,834 SME loan recipients, priority sectors accounted for 43% and women entrepreneurs 30%, SME Bank said.
SCFS II funds are provided by the government and Participating Financial Institutions (PFIs) on a 50-50 matching basis.
Federation of Associations for Small and Medium Enterprises Cambodia (FASMEC) President Te Taingpor told The Post that SME Bank has partnered with more than 30 financial institutions to provide loans to help restore the Kingdom’s economic activities to pre-pandemic levels.
He added that the SME Bank provided loans to SMEs working in priority areas such as food processing and agriculture, in line with government policy, and urged SMEs who received SCFS II loans to use them. for these purposes.
According to Taingpor, some SMEs have not received SCFS II loans due to existing indebtedness with banks.
He said his federation has a “vital role” to play in training SMEs to understand how to successfully borrow money from the SME Bank and earn income to pay off their debts, adding that FASMEC provided training to members in the capital and almost all 24 provinces.
The SCFS II budget was increased to its current amount in February, when the Ministry of Economy and Finance, seeing the first positive results and the additional need for financial support for SMEs, allocated an additional $50 million to the SME Bank to continue the program – a sum that has been matched by PFIs, according to SME Bank CEO Lim Aun.
The government launched the first phase of the SCFS in 2020, initially supported by a $100 million fund also provided by the government and PFIs in equal parts. The Secretary of State in the Ministry of Finance, Phan Phalla, announced that the initial phase had benefited 753 SMEs, through 33 PFIs.