Wednesday, April 9, 2014

Rice sector credit boost

9 April 2014

The government-backed Rural Development Bank (RDB) will lend $64 million to Cambodia’s agriculture sector in 2014. President of RDB, said most of the funding would be used to support growth in Cambodia’s rice sector as it strives to meet the government’s export target of one million tonnes by 2015. The rice sector needs more than $300 million to reach its full potential. RDB said that credit from Cambodia’s commercial-banking sector would also help to fund the remaining investment needed in the industry. More funding is welcomed by local millers who say it will help stem the flow of paddy lost to neighboring Thailand and Vietnam. But the RDB will need to make loans more accessible if the industry is to take full advantage of the credit injection.

Acleda Bank, Cambodia’s largest commercial bank, last month said agricultural lending activities had contributed significantly to the finance sector’s year on year growth. According to Acleda Bank, agricultural related lending increased 28 per cent from $552 million in loans in 2012 to more than $710 million in 2013.

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