PHNOM PENH, Aug. 15 (Xinhua) -- Cambodia's state-owned Agricultural and Rural Development Bank (ARDB) on Monday signed up to provide wholesale loans of 30 million U.S. dollars to three financial institutions to boost the agricultural sector.
The subsidiary loan agreement was inked between ARDB and Cambodia Post Bank, Chamroeun Microfinance Institution, and AMK Microfinance Institution, according to a news release.
Under the deal, ARDB provides wholesale loans with the interest rate of 5 percent per annum to the three financial institutions that will provide sub-loans to target beneficiaries such as smallholder farmers, small and medium-sized agribusinesses, agricultural cooperatives and producer organizations for all agricultural produces except rice.
"This project mainly aims to promote financial inclusion and support the agricultural diversification value chains in Phnom Penh and other 12 target provinces," the news release said.
Those target provinces include Battambang, Mondulkiri, Stung Treng, Ratanakiri, Preah Vihear, Siem Reap, Tboung Khmum, Kratie, Kampong Cham, Kandal, Kampong Speu and Kampong Chhnang, it added.