SUBSIDIES
Cambodia
The following communication, dated and received on 7 November 2025 is
being circulated at the request of the delegation of Cambodia.
_______________
1._
Title of the
program
·_
SME
Co-financing Scheme Phase I (SCFS I)
·_
SME
Co-financing Scheme Phase II (SCFS II)
·_
Tourism
Recovery Co-financing Scheme (TRCS)
2._
Period covered by
the notification
·_
SCFS I:
April 2020 – October 2020
·_
SCFS II:
August 2021 – August 2022
·_
TRCS: June
2022 – Present
3._
Policy objectives
and/or purpose of the subsidy
The SCFS I & II schemes aim to provide
low-interest loans to support the growth and development of Small and
Medium-Sized Enterprises (SMEs) operating in priority sectors. Additionally,
these initiatives target businesses severely affected by the COVID-19 pandemic,
facilitating their recovery, enhancing local production, and ensuring the
stability of domestic consumption.
Similarly, the TRCS aims to extend financial assistance through the
low-interest loans to businesses within the tourism sector, including hotels,
guesthouses, restaurants, and other products and services that contribute to
the industry. Given the significant downturn caused by the COVID-19 pandemic,
this initiative seeks to revitalize the sector by mitigating financial distress
and fostering economic recovery.
4._
Background and
authority for the subsidy
The SCFS I & II were
allocated a total funding of USD 340 million, with equal contributions of USD 170
million from the Royal Government of Cambodia, through the SME Bank of
Cambodia, and USD 170 million from Participating Financial Institutions.
Similarly, the TRCS received a total funding
allocation of USD 150 million, with equal contributions of USD 75 million from
the Royal Government of Cambodia, through the SME Bank of Cambodia, and USD 75
million from Participating Financial Institutions.
5._
Form of the
subsidy
Loans with competitive interest rates as some
commercial banks can offer lower than 6.5% p.a. due to their lower cost of
finance.
6._
To whom and how
the subsidy is provided
Loans are allocated to registered SMEs in the
priority sectors and other selected businesses as follows:
1._ Food manufacturing and processing
2._ Businesses in the tourism sector such as hotels,
guesthouses and restaurants
3._ Manufacturing of local consumable goods, waste
recycling, and production of goods for the tourism sector
4._ Manufacturing of finished products, spare parts or
assembling parts to supply other manufacturers.
5._ Manufacturing of medical equipment and medicines
6._ R&D associated with IT or the supply of
IT-based services.
7._ Enterprises located in SME Cluster Zones and
Enterprises developing the Cluster Zone
8._ Wholesale & Retail
9._ Services
Under the SCFS I & II, SMEs
were eligible to borrow up to USD 300,000 for working capital and up to USD
500,000 for investment capital. The annual interest rate was set at 6.5% p.a.
for businesses operating in priority sectors
and 7.5% p.a. for normal sectors. The maximum repayment period was up to seven
(7) years.
Similarly, under the TRCS, SMEs within the tourism
sector can access loans of up to USD 600,000 for both working capital and
investment capital. The interest rate is 6.5% p.a., with a repayment period of
up to eight (8) years. Additionally, the program offers a grace period of up to
24 months, during which borrowers are required to make interest payments only.
7._
Amount of the
subsidy
·_
SCFS I &
II: USD 170 million
·_
TRCS: USD 75
million
(Funded by the Royal Government of Cambodia through SME Bank)
8._
Duration of the
subsidy and/or anytime attached to it
SCFS I (total fund of USD 100 million) was launched in April 2020 in
collaboration with 33 PFIs, and the fund was fully utilized in October 2020,
benefiting 753 SMEs nationwide.
SCFS II (total fund of USD 240 million)
was launched in August 2021 in collaboration with 32 PFIs, and the fund was
fully utilized in August 2022, benefiting 1,992 SMEs across the country.
9._
Statistical data
permitting an assessment of the trade effect of the subsidy
Not applicable.
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