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DEG supports lending to small and medium-sized enterprises in Cambodia

The coronavirus pandemic and its repercussions had a negative impact on the situation in many developing countries. To strengthen private sector structures in Cambodia, secure jobs and give small and medium-sized enterprises access to loans, DEG invests in SME financings.

The Cambodian Acleda Bank Plc (ACLEDA) headquartered in Phnom Penh offers funding for SMEs and private clients. In May 2020 DEG provided the bank with a loan of USD 15 million to enable ACLEDA to continue its lending business with SMEs in Cambodia even in times of the coronavirus pandemic. In addition, ACLEDA is significantly expanding digital services, such as mobile payment systems.

From a non-governmental organisation to the largest commercial bank in the country

ACLEDA started in 1993 when the non-governmental organisation provided funding to help war survivors make a fresh start. Since late 2003 the institution has had a full banking licence and has now become the largest commercial bank in Cambodia. With 263 offices and more than 12,000 employees, Acleda provides loans to around 400,000 customers. The focus is on small and medium-sized enterprises; and more than half of the businesses are run by women.

Thanks to the long-term refinancing by DEG and its partners, ACLEDA will be able to grant more loans in future and thereby help their clients to continue safeguarding jobs. What is more, ACLEDA generates local income, including wages and salaries, interest expenses and income taxes.

DEG has been supporting ACLEDA for 20 years, initially as a shareholder, later as a lender.