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SMEs call for interest rate change
Tough loan requirements and high interest rates are hindering growth among the Kingdom’s small and medium enterprises, some entrepreneurs said yesterday.
Banks generally accept only buildings and land in Cambodia as collateral, restricting capital available for businesses to expand, according to Te Taingpor, co-chair of the manufacturing and SME working group.
Speaking at the national forum between financial institutions and SMEs, he called on financial institutions to widen their definition of collateral needed to secure loans.
“Banks should evaluate the practical business situation facing each firm,” he said.
He suggested that movable assets such as vehicles or machinery should also be considered as collateral.
Cambodia has 320,123 SMEs employing 1.4 million people, he said at the forum, which was attended by representatives of some 50 financial institutions and 300 SMEs.
phnom penh post
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