Strengthening Access to Capital: ABA and CGCC Join Forces through Credit Guarantee Schemes

ABA Bank and the Credit Guarantee Corporation of Cambodia (CGCC) have signed two credit guarantee agreements: (1) the Economic Stimulus Guarantee Scheme (ESGS) and (2) the Rice Export Guarantee Scheme Phase 2 (REGS 2).

The signing ceremony was held on July 29, 2025 at the ABA Bank Head Office, in the presence of Bibhu Pandey, Chief Credit Officer of ABA Bank; No Lida, Chief Executive Officer of CGCC; and their respective teams.

The signing of both agreements demonstrates the strong commitment and collaboration between ABA and CGCC to support businesses, especially small and medium enterprises in Cambodia, by expanding access to formal credit through well-structured guarantee schemes. 

Under ESGS, CGCC can provide guarantees on loans disbursed by ABA to eligible businesses with a coverage up to 90 per cent and a guarantee fee as low as 0.75 per cent. With CGCC’s guarantees, ABA will be able to disburse more necessary loans to potential businesses to support economic resilience during this challenging time.  

Meanwhile, the REGS 2 reflects a shared effort to bolster Cambodia's agricultural economy. It offers loan support to rice exporters and millers that lack collateral, enabling them to enhance the competitiveness of Cambodian rice in international markets, further uplifting a sector central to rural development. 

As of 31 July 2025, approximately USD 38 million in loans have been disbursed with CGCC’s guarantees under REGS.  

Bibhu Pandey commented, "We at ABA are proud to expand our partnership with CGCC in both guarantee schemes. This initiative underscores our commitment to inclusive financing and long-term economic development. Together, we remain steadfast in supporting businesses to achieve their full potential." 

No Lida also stated, “ABA and CGCC first signed our credit guarantee agreement in 2021. Since then, ABA has steadily increased the use of CGCC’s guarantees to support a wide range of underserved small and medium enterprises. Today, we’re excited to deepen this partnership by expanding into ESGS and REGS 2. Notably, REGS 2 marks our first portfolio guarantee scheme with ABA, enabling more efficient guaranteed loan disbursement. With ABA now onboard for both ESGS and REGS 2, I believe that more credit will be available for potential businesses. ABA lends; CGCC guarantees—together, we’re strengthening SME access to finance.” 

Looking forward, ABA and CGCC remain steadfast in enabling broader access to finance, fostering entrepreneurship, and contributing to a more resilient and diversified economic landscape.  

This press release was supplied.