In Nine Months, Cambodia Secures Over USD 1 Billion in Credit Agreements to Drive National Development

• 13 December 2024
• Local News
• 548 Views

Cambodia’s government signed new credit agreements totaling USD 1.07 billion in the first nine months of 2024, representing a 7% increase compared to last year.

These funds support key development priorities, including infrastructure and economic productivity. This progress was detailed in a Ministry of Economy and Finance report released on 10 December 2024.

In the third quarter alone, the government signed concessional credit agreements amounting to USD 738 million. These loans come with favorable terms, including an average grant element of 47%, which underscores the Royal Government’s ability to negotiate advantageous conditions to fund its strategic initiatives.

The ministry emphasized that these credit agreements are critical to financing the Royal Government’s priority sectors, fostering long-term sustainable growth, and boosting the country’s economic and manufacturing capacities.

While securing these agreements, the government also reported cash withdrawals totaling USD 806 million during the same period. These funds were allocated primarily to infrastructure and other essential development areas. However, this figure reflects a 32% decrease compared to withdrawals in the first three quarters of 2023.

This dual approach—securing new credit while managing cash withdrawals—reflects Cambodia’s focused strategy to balance its financial planning with the growing demands of its national economy. By prioritizing concessional loans with favorable terms, the government aims to achieve sustainable growth while maintaining fiscal responsibility.

• Investment and Funding