Offer loans at reasonable rates to support tourism, MoT tells BFI

The Ministry of Tourism (MoT) on Wednesday urged banks and financial institutions (BFIs) to collaborate in enhancing Cambodia’s tourism sector by expanding digital financial services and offering tailored loan programs to support businesses in key tourism hubs. The ministry also emphasized the importance of promoting tourism destinations and integrating digital payment solutions to drive economic growth within the sector.

The call was made during a meeting between Minister of Tourism Huot Hak and In Channy, President and Group Managing Director of ACLEDA Bank Plc. to discuss potential collaboration between the ministry and ACLEDA Bank on digital financial services, according to MoT’s press release on Thursday.

The discussion focused on improving payment systems, streamlining tourist visa applications through digital platforms, and expanding other technology-driven services. Both sides also explored the possibility of providing targeted loans to support tourism businesses, particularly in key government-prioritized areas such as Siem Reap, Sihanoukville, Kep, and Mondulkiri.

Additionally, they discussed collaborating with tourism communities to adopt the KHQR payment system and offering Merchant OD loans to facilitate business operations.

As a key outcome of the meeting, the Minister highlighted the importance of implementing the high-level recommendations made by the Prime Minister on March 22, during the official opening of the 9th Tonle Sap Festival in Takeo Province. In line with these recommendations, the Minister instructed ACLEDA Bank to assess the feasibility of providing loans at reasonable interest rates to support the tourism sector.

Furthermore, ACLEDA Bank was encouraged to promote Cambodia’s tourism potential through its website and app, particularly by incorporating tourism-related content into its annual business trips and events. The bank was also urged to organize tourism excursions to community destinations such as Phnom Penh Market and Kampong Phluk, as well as to encourage visits during the Green Season to further boost local tourism.

Mar Amara, Senior Group Chief Financial Officer of ACLEDA Plc, told Khmer Times that collaboration between banks and the government has played a crucial role in supporting the private sector, particularly in challenging times.

“Banks and the government have always collaborated to support the private sector before, during, and after the Covid-19 crisis to help drive national economic growth,” she said.

According to Amara, financial institutions serve as a fundamental pillar in ensuring that businesses have access to the necessary funds for expansion and sustainability. She emphasized that ACLEDA continuously assesses and provides reasonable interest rates to businesses as part of its commitment to fostering economic progress.

“We continuously assess and offer reasonable interest rates to businesses because, as a bank, we are a primary source of capital for supporting all businesses,” she said.

However, Amara noted that while access to financing is crucial, banks must ensure that funds are allocated responsibly. She highlighted that a thorough evaluation process is conducted before approving loans to mitigate financial risks and enhance economic stability.

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