Logo of Phnom Penh Post newspaper Phnom Penh Post - ARDB ponders interest rate cut

ARDB ponders interest rate cut

ARDB ponders interest rate cut

The state-owned Agricultural and Rural Development Bank (ARDB) is considering reducing the interest rate from six per cent to five per cent to encourage more small entrepreneurs to join in the implementation of the government’s $50 million special credit programme.

At a seminar on credit, ARDB CEO Kao Thach told about 250 poultry and vegetable farmers in Kandal province on Thursday that ARDB is considering lowering the interest rate to support farmers.

ARDB officially released a $50 million fund in March for lending to industrial enterprises at low interest rates. Currently, ARDB offers loans ranging from $10,000 to $300,000 with a six per cent interest rate for working capital and 6.5 per cent for capital investment per annum.

For collateral loans under this special financing programme, ARDB can provide up to 80 per cent of the value of collateral, he said.

“There will be more flexibility in obtaining collateralised loans as we will accept various types of collateral, including equipment and machinery, inventory, a letter of guarantee from the buyer’s side or other letter of guarantees, and non-real estate certificates of deposit,” said Thach.

Kandal provincial governor Kong Sophorn, who was also at the seminar, asked the ARDB to ease some credit conditions for farmers to allow them to expand their businesses.

“I would like to propose a reduction in the interest rate for farmers who have access to credit for doing business and ask for payment leniency given the situation fuelled by the Covid-19 outbreak. This, in accordance with the principles of the government and the National Bank of Cambodia,” he said.

Thach said the bank is currently reviewing loan applications for seven small- and medium-size enterprises (SMEs) in the agro-industrial sector. All of them applied for a $200,000 loan – the maximum working capital loan amount.

A survey by the Ministry of Industry, Science, Technology and Innovation of 71 enterprises in the Kingdom found that they needed assistance in market research, service development, packaging, technology adoption, human resources, access to labour, access to finance, business registration, taxation and improving hygiene standards.

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one