The Rural Development and Agriculture Bank (RDAB) yesterday urged farmers to increase agricultural cultivation and rearing of livestock to promote domestic products, create more employment and reduce imports.
Speaking at a forum on agricultural products of small and medium enterprises in Svay Rieng province, RDAB director-general Kao Thach said the bank is implementing a special financial programme with a $50 million fund to provide low-interest loans for farmers to invest in livestock rearing and crop cultivation.
He said agriculture plays a significant role in Cambodia’s economic growth and thus encouraged farmers to expand their activities, including the farming of fish or poultry and growing vegetables which could improve the production chain.
Thach said an increase in domestic production can also help reduce the migration of workers to other countries.
He said as Cambodia faces challenges stemming from COVID-19 and the EU’s move on the Everything-but-Arms trade status, domestic production can boost business competitiveness and help reduce import dependence.
Thach added that the special financial programme will provide between $5,000 and $300,000 in short-term loans of up to two years to farmers with a low-interest rate of five percent annually while a 5.5 percent annual interest rate will be levied on loans taken out for a seven-year term.
Regarding credit collateral, Thach said RDAB would provide up to 80 percent of the value of real estate collateral and the acceptance of collateral will be more flexible.