Logo of Phnom Penh Post newspaper Phnom Penh Post - ARDB farm loans now total $31M

ARDB farm loans now total $31M

Content image - Phnom Penh Post
ARDB director-general Kao Thach said applications for government loans have grown rapidly. Hong Menea

ARDB farm loans now total $31M

Farm loan applications to the state-owned Agricultural and Rural Development Bank (ARDB) reached $31 million on Friday.

ARDB director-general Kao Thach said applications for government loans have been growing rapidly since the government officially launched a $50 million fund in March.

He added that as of the second week of the month, applications from small and medium-sized enterprises (SMEs) increased to 288 or $31 million, of which more than $4 million had already been approved.

“We encourage and call on our farmers to hurry and file applications for this programme in case they need to expand their business,” said Thach.

Most applications from small businesses focused on animal husbandry, fish, vegetable growers and fruit, in line with the government’s policy of boosting local production, he said.

“Credit under the government’s special financing scheme will enable SMEs in the agro-industry to expand production to strengthen competition and reduce imports from abroad.

“I would like to request to fish farmers, livestock raisers and vegetable growers to make clear plans to grow to meet the market needs in a sustainable way to reduce imports from neighbouring countries,” he said.

Entrepreneurs can borrow from $10,000 to $300,000 to expand their business.

In a press release issued last month, the government said it has decided to reduce the interest rate from six per cent to five per cent per annum for working capital and from 6.5 per cent to 5.5 per cent for capital investment, free of service charges.

The government also decided to adjust the maximum credit period from five to seven years for the capital investment, said the statement.

At the same time, SMEs that are not officially registered can also apply for credit, requiring that the registration is completed within one month of receiving a loan.

Thach said at a signing ceremony with Wing (Cambodia) Limited Specialised Bank late last month that the ARDB could receive some parts of the Ministry of Economy and Finance’s $300 million financing, which will allocate additional financing to support and play a catalyst role to boost growth in key sectors during and after the Covid-19 crisis.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted