Representatives of the Association of Banks in Cambodia (ABC), the International Finance Corporation (IFC) and the Mongolian Bankers Association (MBA) signed an agreement yesterday aimed at developing a sustainable financing framework for Cambodia.

Speaking to reporters after the signing ceremony, acting ABC Chairman Charles Vann said the memorandum of understanding (MoU) directs financial institutions in Cambodia to find the most appropriate mechanism for sustainable financing.

“We [banks] do business and not only target profits but think about both profits and the sustainability,” he said. “We propose to seek a way to help our clients’ businesses so that they can take out a loan and operate profitably while repaying the loan to the bank.”

Under the MoU, the IFC will provide assistance to promote sustainable financing and support the growth of green financing in Cambodia, while MBA will share its experiences of sustainable financing in Mongolia.

“We will share our knowledge on how Mongolian banks are screening [clients] in regard to lending in social and environmental issue,” said Unenbat Jigjid, secretary-general of MBA. “We hope that Cambodian banks will learn from these experiences and adopt their own framework suitable for their circumstances.”