Credit Bureau (Cambodia) and Credit Guarantee Corporation (CGCC) have signed a Memorandum of Understanding to strengthen financial inclusion for women and SMEs through the promotion of credit guarantee support scheme and adoption of data analytics in credit decision-making by financial institutions across Cambodia.

The cooperation between CBC and CGCC will expand access to credit, by providing more transparent loan assessment to women and SMEs.

As the only credit reporting service provider in the country, CBC provides credit history information bridging the information asymmetry between borrower and lenders, thus, reducing transaction costs of lending and promoting access to finance.

Over the years, CBC’s credit reporting services and a portfolio of data analytics solutions have eased barriers to credit for many Cambodians and reduced industry-wide credit risk. CBC’s role as a key financial infrastructure is significant to maintaining financial sector stability for the country.

CGCC provides credit guarantees on loans disbursed by participating financial institutions to support viable businesses and individuals that lack collateral when seeking access to finance.

Especially, in the context of the economic slowdown from the pandemic, support from CGCC has been instrumental in driving economic growth, fuelling employment and stabilizing the economy.

Oeur Sothearoath, Chief Executive Officer of CBC said, “This partnership marks a milestone in enhancing financial inclusion to women and SMEs owners as well as assuring a fair, reliable and data-driven approach in enabling access to finance for in the country. This collaboration between CBC and CGCC shall strengthen our financial infrastructure and streamline the much needed support for SMEs.”

Source: Khmer Times news