Cambodia financially supports SMEs and the agricultural sector
A special $100 million emergency loan program will help SMEs and the agriculture and agribusiness sectors weather the pandemic.
The loan will be extended to the private sector through the two public agricultural and rural development banks and the SME Bank.
Speaking at the official launching ceremony of the scheme, Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, said the $100 million package will be used to support the recovery of the economy in a near future.
“The $100 million budget will be used to boost agriculture and small and medium enterprises, two of the most important sectors of the national economy, both in terms of job creation and improved livelihoods. populations and promoting national economic growth,” he added.
The new funds will be divided equally between the Agricultural and Rural Development Bank and the SME Bank to support the activities of SMEs in need and support Cambodia’s rice, livestock, crop production sector, as well as to support risk sharing. co-financing mechanisms with banks and financial institutions.
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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 workforce, the government is promoting the development of SMEs, especially those in key sectors such as agriculture, agro-industry, agro-processing, components, tourism, a top priority, according to the Khmer Times.