Agreement Inked on Trade Loans in Cambodia

The US Export-Import Bank (EXIM) and the Cambodia Chamber of Commerce signed an agreement on Monday that will guarantee loans offered for the purchase of US goods and services. The memorandum of understanding was signed as part of the US-Asean Trade and Investment Framework Arrangement, which came into force in 2006 in an effort to boost trade ties between the US and members of Asean. Under the agreement, EXIM, the official export-credit agency of the US, will guarantee the repayment of medium- and long-term loans offered by banks to businesses looking to buy products make in the US. Loan guarantees by EXIM in the Asean region from 2009 to May 2011 totaled more that $1 billion. In a statement issued by the US Embassy in Phnom Penh, EXIM committed “to increase outreach in Cambodia about the availability of financing support through the bank’s services and programs.” In Channy, CEO of Acleda Bank, said the deal would likely encourage more imports from the US than before.