U.S. and Cambodia Chamber of Commerce ink deal on trade loan guarantees

PHNOM PENH (Xinhua via COMTEX) -- The U.S. Export-Import Bank (Exim Bank) and the Cambodia Chamber of Commerce (CCC) inked the Memorandum of Understanding on trade loan guarantees to boost trade between the U.S. and ASEAN member countries, according to a statement released by the U.S. embassy here on Thursday.

The MoU was signed between the U.S. Ambassador to Cambodia, Carol A. Rodley and Kith Meng, the CCC's president, earlier this week.

The agreement between the two entities reflects an initiative under the U.S.-ASEAN Trade and Investment Framework Arrangement (TIFA), said the statement.

"Under the agreement, Exim Bank provides loan guarantees to underwrite the risk of nonpayment of medium- and long-term loans extended by commercial banks to ASEAN buyers of U.S. goods and services," it said.

The CCC will now join business chambers from Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam under this framework, it added.

In June 2009, President Barack Obama determined that Cambodia became eligible to receive financing for purchases of U.S. exports by its private-sector buyers under the Export-Import Bank Act of 1945.