Cambodia Investment Review
The Credit Guarantee Corporation of Cambodia (CGCC) and Lao Credit Guarantee Sole Company Limited (LCGC) have signed a Memorandum of Understanding (MOU) aimed at strengthening cooperation in credit guarantee services and improving access to finance for micro, small, and medium enterprises (MSMEs) across Cambodia and Laos.
The agreement was signed on May 11 at CGCC’s headquarters in Phnom Penh by CGCC Chief Executive Officer No Lida and LCGC Chief Executive Officer Wong Keet Loong, with representatives from the Ministry of Commerce and Industry, Ministry of Finance, the Bank of Lao PDR, and both institutions in attendance.
Focus on MSME Financing Access
The partnership establishes a formal framework for collaboration between the two state-backed credit guarantee institutions, focusing on knowledge sharing, operational development, capacity building, and the expansion of guarantee schemes designed to support MSMEs.
Read More: CGCC Marks Five Years as Government Launches New Individual Guarantee Plus Scheme
CGCC CEO No Lida said the agreement marked the start of what he described as a “long and impactful partnership” between the two organizations, adding that both institutions would benefit from exchanging operational experience and technical knowledge.
He noted that while CGCC began operations earlier, the partnership would create opportunities for both institutions to learn from each other as they continue developing their guarantee frameworks and services.
LCGC CEO Wong Keet Loong said the Cambodian institution had developed into what he described as a regional model for credit guarantee operations over the past five years and that the collaboration would support Laos’ efforts to improve financing access for small businesses.
Green Finance and Knowledge Sharing Included
The MOU also includes cooperation on green taxonomy frameworks and climate-related financing guarantee schemes, reflecting growing regional interest in sustainable finance and green lending initiatives.
Both organizations operate as government-established institutions with mandates focused on reducing financing constraints for MSMEs, a segment widely viewed as critical to economic growth, employment creation, and private sector development across Southeast Asia.
The agreement is also expected to support ongoing information exchange and institutional learning between the two organizations as they expand their operational capabilities.
CGCC and LCGC Expand Regional Cooperation
The agreement comes as governments and financial institutions across the Mekong region continue looking for new mechanisms to support MSME lending amid tighter credit conditions and increasing pressure on smaller businesses to access formal financing.
Credit guarantee institutions are designed to reduce lending risks for commercial banks and financial institutions by partially guaranteeing loans provided to businesses that may otherwise struggle to secure financing due to limited collateral or operating history.
CGCC was established in 2020 under the financial and technical guidance of Cambodia’s Ministry of Economy and Finance. Its mandate includes expanding financial inclusion and supporting economic growth through loan guarantees, bond guarantees, and SME capacity-building initiatives.
According to the institution, CGCC had provided guarantees to 9,808 accounts worth a combined $567.63 million as of the end of April 2026.
LCGC, meanwhile, was officially incorporated in December 2024 and formally launched operations in April 2026. The institution operates under the supervision of the Bank of Lao PDR, with technical guidance from the Ministry of Industry and Commerce and ownership under Laos’ Ministry of Finance.
The Lao institution’s primary role is to support access to finance for MSMEs by providing guarantees to financial institutions, reducing lending risks, and encouraging credit growth within the Lao economy.
