ARDB Launches Special Financing Project-II

ARDB Launches Special Financing Project-II

The Agricultural and Rural Development Bank (ARDB) is a state bank created to provide efficient and sustainable banking finance and services to agriculture and rural economies.

ARDB began the special financing project of $50 million for supporting the growth of vegetation, fruits, livestock, modification of agricultural products, aquaculture, processing of agricultural products, Pailin longan, mango and cashew nut.

The second phase of the Royal Government’s Special Financing Project was launched in Kampong Thom province on Monday. The second phase will also cover Tonle Sap Lake, Preah Vihear and Oddar Meanchey.

During the meeting held at Kampong Thom Provincial Department of Agriculture, Kao Thach, Royal Government Delegate in charge of Chief Executive Officer of ARDB, explained to the farmers about the purpose and objectives of the second phase of the Special Government Financing Project through ARDB.

He also mentioned the credit policy in this project, which has an interest rate of 5.5 percent per annum for investment capital and 5 percent per annum for working capital. Moreover, collateral is highly flexible and can provide credit up to 80 percent of the collateral.

He urged farmers to manage their businesses by recording income and expenses regularly.

“At the same time, agriculture is a priority in the context of Covid-19. Thus, the bank encourages farmers to compile in communities and produce on agricultural contracts to ensure the supply of marketing and money profits. The bank has guidelines for farmers to grow according to Good Agricultural Practices (GAP) and compile the production of safe vegetables by growing in greenhouse if possible,” he said.

Chan Seyha, Deputy Chief Executive Officer of the ARDB told Khmer Times that although ARDB launched the second phase of the Special Finance Project yesterday, there is a huge demand for loans. Borrower is enterprise owner, farmer, a businessman who receive loans from our institution. This project is covering throughout our country. I hope that the third phase will launch at the Mekong River area such as Tboung Khmum, Kompong Cham provinces,” he said. Khmer Times