- OFID and Amret sign loan agreement to support MSMEs in Cambodia
OFID and Amret sign loan agreement to support MSMEs in Cambodia
Vienna, Austria, August 12, 2016. OFID has signed a US$10 million term loan with Amret Company Limited, Cambodia, which will help support the country's micro, small and medium enterprises (MSMEs). This sector plays a vital role in Cambodia's socio-economic development in terms of employment creation, general economic benefits and in achieving poverty reduction.
The agreement was signed by OFID Director-General Mr Suleiman J. Al-Herbish, and co-signed by Amret Chief Executive Officer Mr Chea Phalarin, and Deputy Chief Executive Officer Mr Dos Dinn.
Amret provides a wide range of financial services to low-income individuals, as well as MSMEs. OFID began cooperation with Amret in 2005. This transaction is OFID's fifth loan provided to Amret. Under the fourth facility, 916 sub loans were financed with an average financing size of US$27,000. The facilities were utilized to support MSMEs in the agriculture sector, particularly engaged in rice, animal raising and trading.
Amret has been a reliable partner of OFID in fulfilling its mandate, particularly in Cambodia. To date, all the financing provided has brought tangible and satisfactory results for thousands of MSMEs in the country.
OFID and Cambodia
OFID began its relationship with Cambodia in 1996 and has since provided nearly US$70m in public sector financing for projects in the transportation, water supply and sanitation and energy sectors. This amount also includes support to a social fund project which carried out small-scale, sub-projects that built or repaired vital infrastructure for displaced populations.
The country has also benefited from regional and national grants aimed at helping vulnerable mothers and their children; enhancing food security; scaling up the delivery of modern energy services; and, mitigating HIV/AIDS.