World Bank to Increase Credit to Rice SectorNews detail:
The World Bank and government on Friday announced the launch of a program that aims to help improve access to credit for rice millers by supporting the sector with up to $50 million in financing. Rice Millers have previously said they were struggling to get access to the credit they need to increase stocks and rice processing for export.
Under the new program, commercial banks and microfinance institutions that extend credits to agribusiness can get a 50 percent on these loans in case a business defaults, the Bank said in a news release.
Minister of Finance Keat Chhon said a $25 million fund would be established to provide these guarantees, a $20 million of which was provided by the Bank, while the government would contribute $5 million, which it had received from the Banks in grants and loans. The fund, administered by the World Bank Group’s International Finance Corporation, is expected to leverage up to $50 million of commercial bank lending to agribusiness sector, Mr Chhon said in a translation of prepared remarks, adding that it would be in place from 2011 to 2018.Source institution:
The Cambodia Daily, February 14, 2011Contributor name:
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