Home Enterprise bank ACLEDA greenlights 43 TRCS loans worth $6.3m

ACLEDA greenlights 43 TRCS loans worth $6.3m

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An ACLEDA bank employee counts Riel currency inside the bank in Phnom Penh last year. Yousos Apdoulrashim

Listed ACLEDA Bank Plc has approved 43 loans totaling $6,349,000 under the Tourism Recovery Co-financing (TRCS) scheme as of August 15, since credit was made available under the scheme July 1.

ACLEDA chairman and chief executive In Channy told reporters last week that the bank had been “actively involved” in the TRCS as a member, from discussions prior to its establishment, and remained “strongly engaged” to further support the program.

Under the TRCS, ACLEDA is focused on providing loans only to small businesses, he said, adding that the bank is committed to “working with the government” in supporting the rehabilitation of affected tourism businesses. by Covid-19.

“We only grow if our customers grow… [and now] deal with a situation where the funds are [hard] to find, and the cost of a loan abroad [includes] high interest rates,” Channy said. “We will continue to lend to the tourism sector as we have agreed, and the government has announced.”

The TRCS was rolled out on May 17 to provide a lifeline to businesses involved in the tourism value chain that are considered to have been significantly impacted by the Covid-19 crisis, and is currently being implemented with the support of 19 Participating Financial Institutions (PFIs) . The program’s loan rules and procedures were officially established on July 1, opening the door to loan applications.

The program was financed by a matching fund between the government and financial institutions, with $75 million from the national budget to be disbursed in the form of loans issued by the Small and Medium-sized Enterprise Bank of Cambodia Plc (SME Bank) managed by the state. , and the remaining $75 million in loans made through PFIs, which include commercial banks and microfinance institutions (MFIs).

The main offers of the project include a maximum interest rate of 6.5% per annum, a grace period of 16 months on principal repayments, a loan term of up to seven years, a loan amount of up to reach $400,000 and the option to receive funds in either riel or US dollars.

The TRCS targets four main types of businesses: hotels, bed and breakfasts, restaurants and suppliers to the tourism sector.

The Minister of Economy and Finance, Aun Pornmoniroth, underlined during the launch of the TRCS that the co-financing project is part of the “Strategic framework and economic recovery programs in the context of living with Covid-19 in a new normality 2021-2023”, the implementation of which began in December.

“The financing of companies in the tourism sector is a necessary measure to help them recover and strengthen their competitiveness as well as to join the royal government in making tourism more attractive and above all to make Cambodia a major tourist destination both at the regional level. than global,” he said. said.

Tourism Minister Thong Khon noted that the number of tourism businesses that have reopened is still low. As of March 31, 1,428 tourism businesses are still closed or suspended, while more than 20,000 workers in the sector are still affected and unable to return to pre-pandemic employment conditions.

He added that almost 97% of tourism businesses reported cash flow problems and a lack of funds for repairs and reopening, and noted that the businesses that have been able to reopen are largely high-end companies funded by foreign parent companies.