Credit Guarantee Corporation of Cambodia Unveils $200M Economic Stimulus Guarantee Scheme

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Credit Guarantee Corporation of Cambodia Unveils $200M Economic Stimulus Guarantee Scheme
A factory in Phnom Penh, June 2025. – Phin Rathana/B2B Cambodia

The Credit Guarantee Corporation of Cambodia (CGCC) announced the launch of its new USD 200 million Economic Stimulus Guarantee Scheme (ESGS) on June 30, 2025. This new initiative aims to lower borrowing costs, expand credit access, and drive private sector growth, as Cambodia transitions towards upper middle-income status.

The government-backed ESGS is designed to stimulate credit flows to micro, small, and medium enterprises (MSMEs) and large firms amid tightening liquidity and a shifting macroeconomic landscape. The scheme will come into effect on July 1, 2025.

The ESGS replaces the CGCC’s earlier Business Recovery Guarantee Scheme (BRGS), launched in March 2021 to provide financial lifelines to pandemic-hit businesses, and which officially expired on June 30, 2025. The new ESGS builds on that foundation with more generous terms, including loan guarantee coverage of up to 90 per cent of the total principal, and minimum guarantee fees as low as 0.75 per cent of the guaranteed amount.

The CGCC stated in a press release that this initiative aligns with Phase 1 of the Royal Government’s Pentagonal Strategy to accelerate private-sector recovery while improving access to finance.

Strengthening Economic Resilience

While Cambodia’s economy grew by 5.8 per cent in 2024, projections from the Ministry of Economy and Finance show that  businesses, especially MSMEs, continue to face challenges in securing affordable credit due to risk aversion among commercial banks and rising interest rates.

Cambodia’s financial inclusion rate remains below the ASEAN average, and according to the Asian Development Bank (ADB), the Cambodian government has requested for ADB’s continued support in the finance sector through a policy-based loan. The ADB’s Inclusive Financial Sector Development Program received a total value of USD 120 million from the Asian Development Fund (ADF) between 2016 and 2022 through three subprograms and associated technical assistance.

What’s New Under the CGCC’s ESGS?

Compared to BRGS, ESGS introduces lower fees, broader eligibility, and increased coverage to attract both Participating Financial Institutions (PFIs) and borrowers. The scheme is expected to be particularly beneficial for businesses in high-priority sectors such as agriculture, industry, and services that remain vulnerable post-COVID.

The state-owned CGCC operates under the financial and technical guidance of the Ministry of Economy and Finance, with mandates to enhance financial inclusion and support the development of small and medium-sized enterprises.

CGCC’s products and services include loan guarantees in the banking sector, bond guarantees in the securities sector, and the Entrepreneurship Program Initiative of CGCC (EPIC). As of the end of May 2025, the CGCC had approved guarantees on business loans for a total of 4,877 Guaranteed Accounts, amounting to approximately USD 294.32 million.