Cambodia Secures US$1.81bn in Concessional Loans for Public Investment Projects in 2023

• 25 March 2024
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In 2023, the Cambodian government inked substantial concessional loan agreements with development partners, amounting to a noteworthy US$1.81 billion. This figure represents 79% of the legal ceiling permitted by law (SDR 1,700 million), as revealed in the Cambodian Public Debt Statistics Bulletin released by the Ministry of Economy and Finance.

The newly signed concessional loan agreements consist of a bilateral framework, comprising 57%, and a multilateral framework, constituting the remaining 43%. Despite a slight decrease of approximately 16% compared to the previous year, the loans remain integral to financing public investment projects in priority sectors aimed at fostering long-term sustainable economic growth and enhancing productivity.

According to the ministry, all the loans exhibit a high level of concession, boasting an average grant element of around 45%. This ensures favourable terms for Cambodia, facilitating the implementation of crucial development initiatives.

In parallel, the Cambodian government issued government bonds amounting to a total of 238 billion Riels, equivalent to approximately US$58.26 million, in 2023. This financial instrument serves as another avenue for raising capital to support national development efforts.

As of year-end 2023, inclusive of existing debt obligations, the Cambodian government’s total public debt stands at US$11.24 billion. This figure underscores the government’s strategic approach to leveraging both concessional loans and domestic financial instruments to drive sustainable economic growth and address key developmental priorities.

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