The Credit Guarantee Corporation of Cambodia (CGCC) approved a total of 943 guarantees amounting to US$72 million in 2023, which is a 20 percent increase in the number of guarantees compared to 2022. This brought the cumulative amount of approved guarantees to US$165 million since commencement of operation in March 2021, benefiting approximately 2,000 micro, small and medium enterprises (MSMEs) to its credit guarantee scheme, read a report. The role of CGCC is undeniably critical in advancing the development of MSMEs and enhancing financial access for entrepreneurs across Cambodia, said CEO of CGCC Wong Keet Loong. Through credit guarantee mechanism, CGCC is instrumental in enabling sustainable financing for MSMEs, thereby fostering economic growth and prosperity by providing crucial financial support and mitigating risks for lenders, he said at the CGCC Annual Seminar on 'Diversifying Credit Guarantee Mechanism for Sustainable Financing of MSMEs' held on Jan. 31 at Sofitel Phnom Penh Phokeethra. 'As we reflect past year, 2023 marked the third year of operations for CGCC. It was a year filled with significant milestones, as we continued to play a key role in supporting the growth of MSMEs through our credit guaranteed loans to Cambodian entrepreneurs ensuring the sustained flow of credit in the market to bolster economic activities,' Wong said. Woman entrepreneurs accounted for approximately 40 percent of total guarantees primarily through the woman entrepreneurs guarantee scheme which is supported by UN Capital Development Fund (UNCDF), the United Nations Development Program (UNDP) and the business recovery guarantee scheme. CGCC, the first credit guarantee institution in the country under the Ministry of Economy and Finance, was established in August 2020, during the Covid-19 pandemic to provide timely credit to support the rehabilitation and sustainability of local businesses. H.E. Ros Silava, Secretary of State at the Ministry of Economy and Finance and Chairman of the CGCC, said that CGCC's guarantee scheme has beefed up possibility of crucial financial accesses to entrepreneurs, allowing them to expand their businesses and operations. 'The guarantee mechanism has played an important role ensuring the sustainable of providing and receiving financing supporting to economic activities,' he said in the seminar. The CGCC scheme involves 27 participating financial institutions (PFIs) to extend credit as working capital investment and business expansion to SMEs. 'CGCC guarantees serve as a catalyst for the expansion and development of the business community. As a result, we contribute to the improvement of livelihood driving closer to our national goal of attaining upper middle-income status by 2023 and ultimately achieving high income status by 2050,' he said. Source: Agence Kampuchea Presse