On Friday, the Council of Ministries approved a draft law on leasing that allows small and medium-sized enterprise or SMEs to lease equipment to business that cannot afford to collateral needed to borrow money to purchase materials, according the Cambodia Daily.
After the draft law passed by the National Assembly, entrepreneurs will be able to lease equipment directly from banks or leasing companies. It is expected that the draft law will be sent to National Assembly soon.
“if passed, it will be financial leasing that will help SMEs have access to the means of production, machinery, movable assets,” said Tal Nai Im, National Bank of Cambodia’s director general, quoted by the Cambodia Daily.
“It is a long-term contract between the lessee and the lesser to develop their business,” said she, adding that the leased equipment still belongs to the leasing institution.”
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