The International Finance Corporation (IFC) on provided US$6 million credit line to a local bank to support Cambodia's small and medium enterprises ( SME) as well as Private Sector Forum.

The loan agreement was signed on Friday between the IFC and the Association of Cambodia's Local Economy Development Agency (ACLEDA) , Cambodia's leading commercial bank specializing in micro and small business finance.

"The loan will enable the bank having the sufficiency funds to meet its credit demand, especially the SMEs loan," Keat Chhon, Cambodia's Economy and Finance minister, said.

"SMEs play a vital role in economic development: creating jobs, contributing to economic growth and poverty alleviation, promoting economic restructuring, being school for entrepreneur ship, being suppliers and customers of large enterprises," said Keat Chhon.

In Channy, General Manager of ACLEDA, said that the loan can let the bank to have at least an additional 3,000 micro, small and medium enterprises. "It provides a stimulus to social development and is a powerful weapon in the fight against poverty in Cambodia, " Channy said.

ACLEDA has more than 11 years of experience lending to micro, small and medium-sized enterprises. It obtained a full commercial bank license on December 2003.

So far, ACLEDA has more than 100,000 low income borrowers, about 70 percent of whom are women. IFC is the private sector arm of the World Bank Group.