On June 29 2021, Mr. Sok Voeun, Chief Executive Officer of LOLC Cambodia, signed Credit Guarantee Agreement with government-owned Credit Guarantee Corporation of Cambodia (CGCC) to provide more business loans in an effort to contribute to economic activities amid the ongoing Covid-19 health crisis. With this participation, LOLC will be able to scale up its loan sizes, especially to small and medium enterprises that are affected by Covid-19.
After the signing, Mr. Sok Voeun said that the agreement would allow LOLC Cambodia to contribute by investing more funds into the economy, at a time when many businesses are in desperate need of capital to survive as Covid-19 spreads.
“Businesses in the service, agriculture, commercial, and transportation sectors are looking for greater funding. With this involvement, we will be able to increase the size of our loans, particularly to small and medium businesses who are affected by Covid-19. This is our contribution to economic growth during this tough time,” he said.
Credit Guarantee Corporation of Cambodia Plc. (CGCC) is a state-owned enterprise established by a Sub-Decree No. 140 ANKR.BK dated 1st September 2020. CGCC is operated under the technical and financial guidance of the Ministry of Economy and Finance. (MEF). CGCC was incorporated on 3rd November 2020 and have been receiving technical support from ADB, WB and UNCDF. CGCC launches the first guarantee scheme on 29th March 2021. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion.
LOLC (Cambodia) Plc. (“LOLC”) is a microfinance deposit-taking institution regulated by the National Bank of Cambodia that focuses on serving entrepreneurs and families at the base of the socio-economic pyramid with the economic opportunities to transform the quality of their lives.
In its more than 27 years of development and growth, LOLC has significantly strengthened its position in the market and become one of the top three microfinance deposit-taking institution in the country in terms of deposit balance, gross loan portfolio (GLP) and number of borrowers. Through its network of 81 offices nationwide and more than 3,000 experienced staff, LOLC serves about 305,000 clients with loan portfolio USD 900 million as of March 2021.The deposit base reached an impressive amount of over USD 560 million with 423,000 depositors. The growth of its deposit balance and number of depositors indicates that LOLC is a trustworthy microfinance institution offering excellent customer service, guaranteeing client protection and providing competitive and innovative deposit and loan products.