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

Cambodia Investment Review

ABA Bank and the Credit Guarantee Corporation of Cambodia (CGCC) signed two credit guarantee agreements: (1) Economic Stimulus Guarantee Scheme (ESGS) and (2) Rice Export Guarantee Scheme Phase 2 (REGS 2). The signing ceremony was held in the presence of Mr. No Lida, Chief Executive Officer of CGCC, Mr. Bibhu Pandey, Chief Credit Officer of ABA Bank, and both respective teams at the ABA Bank Head Office.

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.

Loans to potential businesses to support economic resilience

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

On 29 July 2025, ABA Bank and the Credit Guarantee Corporation of Cambodia (CGCC) signed two credit guarantee agreements.

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.

Inclusive financing and long-term economic development

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.”

Mr. 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.