CGCC and Wing Bank Sign $50 Million Deal to Boost SME Lending in Cambodia

Cambodia Investment Review

The Credit Guarantee Corporation of Cambodia (CGCC) and Wing Bank (Cambodia) Plc have entered into a $50 million Wholesale Guarantee Scheme (WGS) agreement, marking a significant step in enhancing financial inclusion and small business lending in the Kingdom.

The signing ceremony, held at Wing Tower, was attended by approximately 30 representatives from both institutions, including CGCC CEO No Lida and Wing Bank CEO Dr. Dmytro Kolechko.

Backed by Royal Government Support

The WGS, officially launched on January 31, 2025, under the approval of Deputy Prime Minister and Minister of Economy and Finance H.E. Aun Pornmoniroth, is designed to reduce credit risk for banks and increase SME loan issuance. The scheme offers credit guarantees on existing loans issued by Participating Financial Institutions (PFIs), thereby helping banks manage risk and freeing up capital for further lending.

According to a Prakas issued by the National Bank of Cambodia on June 29, 2023, exposures backed by government credit guarantees—such as those under CGCC—qualify for zero percent risk weighting if denominated in Cambodian riel or other clearly guaranteed currencies. This allows banks to optimize their capital adequacy ratios while expanding credit to underserved segments.

“CGCC is pleased to launch our first Wholesale Guarantee Scheme with Wing Bank. This innovative guarantee will assist us in effectively managing our guarantee portfolio to ensure long-term sustainability. Most importantly, it will increase available lending to SMEs,” said No Lida, CEO of CGCC.

Wing Bank becomes the first financial institution to receive a wholesale guarantee from CGCC under this new scheme.

A Boost for SME Financing

The partnership underscores a shared commitment to improving access to finance for small and medium-sized enterprises (SMEs)—a sector widely regarded as the backbone of Cambodia’s economy. SMEs account for more than 90% of businesses and are critical drivers of employment and local development.

“SMEs are the heartbeat of our economy, and with this partnership, we are better equipped to support their ambitions, fuel their resilience, and unlock their potential,” said Dr. Dmytro Kolechko, CEO of Wing Bank. “Together with CGCC and with the support of the Royal Government, we are building a stronger, more inclusive financial ecosystem—one that empowers entrepreneurs and strengthens communities across the nation.”

This scheme is part of CGCC’s broader mandate to facilitate access to formal credit by issuing credit guarantees on loans disbursed by banks and microfinance institutions. Since its establishment in 2020 by the Ministry of Economy and Finance, CGCC has launched several initiatives aimed at expanding credit to underserved sectors, including the Business Recovery Guarantee Scheme (BRGS) and the Women Entrepreneurs Guarantee Scheme (WEGS).

Wing Bank, one of Cambodia’s fastest-growing commercial banks, has expanded rapidly into the digital and SME banking sectors since receiving its full commercial banking license in 2020. Its partnership with CGCC positions it at the forefront of institutional efforts to boost Cambodia’s lending ecosystem through public-private cooperation.

Encouraging Financial Inclusion

The Wholesale Guarantee Scheme is expected to enhance lending capacity and reduce the cost of capital for banks serving the SME sector, especially in rural and underserved areas. By absorbing a portion of the default risk, CGCC allows PFIs like Wing Bank to lend more confidently and at potentially lower interest rates.

As Cambodia continues its post-pandemic recovery, initiatives like WGS play a vital role in unlocking capital for entrepreneurs and aligning with national development priorities. The agreement also reflects growing confidence in Cambodia’s evolving credit guarantee framework and the government’s proactive role in fostering a resilient and inclusive financial sector.

For more on CGCC’s initiatives, visit: https://www.cgcc.com.kh
For information on Wing Bank’s SME services, visit: https://www.wingbank.com.kh