Logo of Phnom Penh Post newspaper Phnom Penh Post - $135M credit facility signed to support agriculture sector

$135M credit facility signed to support agriculture sector

Content image - Phnom Penh Post
ACLEDA Bank president and group managing director In Channy (right) signs the memorandum of understanding (MoU) on May 27. ACLEDA

$135M credit facility signed to support agriculture sector

Japan International Cooperation Agency (JICA) and Sumitomo Mitsui Banking Corp’s (SMBC) Singapore Branch on May 27 penned a $135 million facility agreement with ACLEDA Bank Plc to funnel more loans into agriculture, according to the locally-owned lender.

Speaking at the signing ceremony, ACLEDA Bank president and group managing director In Channy said the two Japanese institutions’ long-term finance scheme would provide a significant avenue for the local bank to lend a hand to micro-, small- and medium-sized enterprises (MSME) nationwide in need of financing for agricultural production or to better manage their revenues.

He took the occasion to tout the value of the bank’s assets and extent of its domestic branch network, pointing out that they were number-one in Cambodia.

“Cambodian people in all segments of the communities, in particular those [living] in rural areas can access financial services of the ACLEDA Bank, including loan[s] in agriculture,” Channy said.

He said the $135 million facility would “promote access to finance, even more actively in rural areas, … for further lending to agriculture … to promote agriculture production and socio-economic development”.

Agriculture is a major linchpin of the Kingdom’s economy, which according to JICA accounts for about 20 per cent of gross domestic product (GDP) and 30 per cent of employment.

“On the other hand, access to finance in the agricultural sector is limited to about nine per cent of the total amount of loans in the country, and more than half of farmers do not have any access to finance,” the Japanese government’s overseas development arm said.

“About 90 per cent of Cambodia’s poor live in rural areas, where about 80 per cent of the population is engaged in agriculture, and the income in these areas is only around 50-60 per cent of that in urban areas, creating an economic disparity.

“This loan will contribute to improving access to finance for these rural farmers through ACLEDA Bank, the financial institution with the largest loan balance in the agricultural sector in Cambodia. The loan aims to contribute to sustainable economic growth in Cambodia by supporting the expansion of lending to the agricultural,” JICA added.

ACLEDA Bank reported that as of March 31, total assets stood at $8.16 billion, total credit portfolio $5.79 billion, and total deposits $5.90 billion, and that the number of customers had passed 3.44 million.


  • 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 using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using 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

  • 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

  • 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