The government has disbursed $50 million through the Rural Development and Agriculture Bank (RDAB) to provide low-interest loan to small farmers and small and medium enterprises.
Kao Thach, director-general of RDAB, said that the interest rate will be about six percent per year, a lower rate which is affordable by farmers.
“Normally, my bank charges eight percent interest per year but with this loan package, six percent is charged per year. It helps the farmers a lot,” Mr Thach said.
Mr Thach said that RDAB provided loans to about 300 companies and some farmers across the country.
“It depends on economics in the country. If our economic growth is fast, then the loan will be increased. But if the economic growth is too slow, then the loans will be reduced,” Mr Thach said.
“The loan will be offered, depending on the size of the business. If it is a big business, then more loan will be given,” he said.
Srun Pov, president of the Cambodia Livestock Raisers Association, said the loan will be very beneficial for struggling farmers.
“The loan will help farmers produce more food in the country. The second thing, it will dissuade people from migrating. When they have work here, they will not leave their villages. And when farmers produce more, the price of goods and produces will not go up,” Mr Pov said.
“When we import everything during this hard time, we are afraid that we do not have enough food to eat if the country’s borders are closed. But if we have our own products and goods, then we are not worried about that,” he said.
He said that chicken and duck farming could take less time than pig and cow raising.