[PHNOM PENH POST]
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.
“We see the demand for
rice export increasing every year, so we will offer loans of $100
million to improve processing quality of rice milling in order boost
exports,” he said.
He was speaking following the signing of an
agreement to provide payments of Electricite Du Cambodge bills through
bank ATMs held at Canadia Tower on Friday.
Canadia had extended
some $20 million in loans to the agricultural sector in the first four
months of 2011, nearly total the $25 million in lending to the same
sector during the whole of last year, he said.
Rice millers have stressed the need for more loans to purchase paddy for processing.
Cambodia
Rice Millers Association President Phou Puy said yesterday that millers
currently possessed capital of about $60 million and another $18
million from the Rural Development Bank to purchase paddy each year.
“It
is not enough with the increased number of orders from international
markets. So, we need about $700 million in loans to buy paddy for
export,” he said.
Much of Cambodia’s paddy is exported to
neighbouring countries unprocessed, but Phou Puy said increased capital
would allow millers to process more paddy in the Kingdom.
ACLEDA
Bank was the largest lender to the agriculture sector in 2009, the
latest year for which National Bank of Cambodia statistics are
available.
ACLEDA President In Channy said yesterday the bank
plans to increase its agriculture lending to more than $160 million in
2011, from $100 million last year. Agriculture lending will constitute
16 percent of the bank’s total lending in 2011.
“This year we see
lots of infrastructure improvements, such as agricultural irrigation
... a strong export market, and a clear national policy supporting the
sector,” he said.
“We are not scared to offer loans to the [agriculture] sector because we trust government goals to increase rice exports.”
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