ADB allocates $500 million for 3 years development plan in Cambodia

The Asian Development Bank (ADB) on Thursday announced a soft-loan package of 488 million U.S. dollars for a new Country Partnership Strategy for 2011-2013 in Cambodia.

The ADB’s resource investment plan is a strong focus on agriculture and natural resources, water supply and municipal development, transport, education, finance, public sector management, energy, and trade facilitation in the Great Mekong Sub- region Read more of this post

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Cambodian banks aim to ride agriculture boom

Cambodian banks are hoping that a surge in agricultural investment will bring in the customers they need to take out loans and put to work the cash flooding into the frontier market’s overcrowded banking system.

Cambodia, which is due to open a stock exchange this year, is attracting investment to rural areas as it seeks to move from exporting primary crops to milling rice and packaging seafood to sell abroad.

Foreign donors have vastly expanded rural road networks and firms from Vietnam, Thailand, Malaysia and beyond are scrambling to buy land and expand rubber and rice plantations. But while the streets of Phnom Penh are cluttered with bank branches and cash machines, banks have ignored rural areas. Read more of this post

720 million USD loan needed to improve rice millers competitiveness

Cambodia’s Small and Medium Industries Association warned that domestic rice millers require US$720 million in loans this harvest season, or they risk being out-competed by foreign merchants.

“We cannot compete with buyers from Thailand and Vietnam to buy grain if local rice mills can’t receive more capital from the government or private banks,” said the association’s secretary general Ut Ren.
Cambodia has about 100 millers, which purchase paddy from farmers, process the rice and sell it to dealers. If the millers are able to borrow short-term funds, they can purchase more paddy and sell more processed rice. Read more of this post

Cambodian Government Double Rice Miller Lending Fund

“The money is a small amount compared to market demand of $350 million. Though, it can keep prices stable as they often fluctuate because of buyers from neighbouring countries.”

The government, he said, was also preparing a $25 million fund to guarantee 50 percent of credit offered to the rice industry by commercial banks.

“We are preparing to set up credit-insured fund with 105,000 million riel guarantee for banks donation loans to rice millers,” he said.

Though, Mey Vann said that the policy was not set to be implemented this year as it required in-depth preparation. “We are working with World Bank and IFC and we schedule to involve [it] out in 2012,” he said.

RDB Head Son Koun Thor encouraged cooperation from the private sector, especially commercial banks, in donation agricultural loans.

Source: CambodiaOrganic

Risks, Rewards as Economic Corridor develops

Cambodia is building up its rural infrastructure in an effort to link itself to its neighbors, under an “economic corridor” project aided by the Asian Development Bank.

Proponents of the southern economic corridor, part of the Greater Mekong Subregion project, say it will bring benefits to villagers like those in Kampong Thom district’s Sambo Prey Kuk temple, in Prasat Sambo district. Read more of this post

Boost in paddy purchase and processing

The Cambodian Rice Millers Association has purchased 380,000 tonnes of paddy over the past seven months for processing, a 10 percent increase on the period a year before, according to association President Phou Puy.

The growth is due to increased financial support from the government through loans from public and private banks, though millers themselves still supply the majority of capital, he said.

“The rice we bought directly from local farmers averaged US$250 per tonne, of which the millers pay 55 percent directly and the rest come from loans,” he said yesterday. Read more of this post

Rubber bouncing up

Cambodia’s rubber industry has expanded rapidly in recent years, but a variety of challenges restrict further advancement of the increasingly lucrative crop, according to experts.

Low-tech materials, quality, maintenance, harvesting and climate change were among the main concerns raised by Director General of Rubber Department Ly Phalla, at a workshop held Friday aiming to improve yields.

“These issues require close cooperation from concerned stakeholders within the industry and rubber producing countries who conduct research,” he said. Read more of this post

A rubber planting campaign launched in Cambodia

Vietnam Rubber Industry Group (VRG) has launched a campaign to plant rubber trees in Sambour district, Kratie province in Cambodia. Read more of this post

Canadia Bank ups agriculture loans

CANADIA Bank plans to quadruple its lending to the agriculture sector this year to US$100 million, particularly targeting rice millers, according to its President Pung Kheav Se.

The increase comes as Cambodia targets growth in the agriculture sector and demand for rice exports continue to increase, he said. Read more of this post

Microfinance grows on agriculture loans

The microfinance sector saw increased demand for loans particularly from small and medium enterprises and the agricultural sector during the first quarter of the year, according to industry insiders. Read more of this post