State-Run SME Bank Starts Banking Operation
AKP Phnom Penh, November 06, 2020 —
The state-owned Small and Medium Enterprise Bank of Cambodia Plc. (SME Bank) has started its soft-launch of banking operations, providing financing and commercial banking services in an effective and sustainable manner to support SMEs.
A statement issued on Nov. 5 stated that the bank is to offer four main value added benefits to the SME community – better and affordable access to financing; technical assistance to SMEs to enhance their productivity and efficiency; down streaming business advisory support; and facilitating access to regional markets.
The service of SME Bank is consistent with the strategic goal of the Royal Government of Cambodia.
As set out under the Cambodia Industrial Development Policy 2015-2025, the bank will provide better and affordable access to financing for SMEs in key priority sectors – food manufacturing and processing; manufacturing of local consumption goods, waste recycling and production of goods for the tourism sector, the bank said.
SMEs can borrow up to US$200,000 for working capital and US$300,000 for investment capital with a maximum interest rate of seven percent per year and the maturity is seven years.
By Chea Vannak