Cambodian farmers can receive a cash boost after two leading banks signed a deal to launch a credit scheme to bolster the country’s agriculture sector.

On March 29, ACLEDA Bank Plc. and the Agricultural and Rural Development Bank (ARDB) inked a Memorandum of Understanding (MoU) that paved the way for the launch of a credit scheme for farmers.

Under the MoU, the two banks pledged to provide supporting credit for farmers to expand vegetable-fruit growing, livestock farming, aquaculture, and agricultural products processing, as well as actors in the production chain for Pailin longan, mango and cashew crops.

Chairman and CEO of ACLEDA, Dr. In Channy said it was the bank’s pride to have contributed to the government’s policies to strengthen the agricultural sector by promoting sustainable supply chains in the market to support post-Covid-19 economic growth.

He added that the MoU aims to bolster the agricultural sector by jointly providing loans to six key areas: animal husbandry, aquaculture, vegetable and fruit growing, and agricultural produce processing.

In addition, supporting loan will be given to actors in the production chain for Pailin longan, mango and cashew crops under the joint credit scheme (50%-50%) between ACLEDA and ARDB on a first-come-first-serve basis.

“The expansion of credit for the six areas above-mentioned would play a key part in increasing local production, job creation and improved income for the local people, especially those in rural areas,” Dr. In Channy noted.

Dr. Kao Thach, Royal Government Delegate and CEO of ARDB, said the cooperation agreement aims to contribute to the government’s special co-financing program under which ARDB and ACLEDA will implement a joint financing scheme to provide support credit to the agriculture sector.

According to Dr. Kao Thach, during the Covid-19 pandemic, ARDB continued to provide agricultural credit to stabilize SMEs in the agricultural sector, with funds from the Royal Government’s special financing program ploughed into the production of vegetables and fruits, animal husbandry, aquaculture and agricultural produce processing.

Earlier this year, the Ministry of Economy and Finance released another $50 million to ARDB from the special financing program to use for direct and joint lending with other banks and financial institutions to support the key agricultural sectors.