Cambodia Inks Concessional Loans Worth US$1 Billion With Development Partners Amidst a 17% Dip

• 13 December 2023
• Local News
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In the initial nine months of 2023, the Royal Government of Cambodia demonstrated strategic financial prowess by securing new concessional loan agreements with development partners, totaling a significant US$1 billion. This accomplishment, outlined in the Cambodian Public Debt Statistics Bulletin by the Ministry of Economy and Finance, reflects a tactical utilization of financial resources, constituting 45% of the legal ceiling.

Distinguished by a bilateral framework accounting for 45% and a multilateral framework for the remaining 55%, these agreements underscore Cambodia’s commitment to fostering collaborative partnerships. However, a noteworthy observation is a 17% decline in the total number of new concessional loan agreements in the first three quarters of 2023 compared to the corresponding period in the previous year.

Specifically, during the third quarter of 2023, the Royal Government inked new concessional loan agreements amounting to US$228.07 million, reinforcing Cambodia’s proactive approach in securing essential funding for developmental projects.

In tandem with these financial collaborations, the Royal Government also engaged in state securities issuance. In the third quarter of 2023 alone, the government issued a total of 64 billion riels, equivalent to approximately US$1.553 million. Over the cumulative period from the first quarter to the third quarter of 2023, the Royal Government successfully issued a total of 184 billion Riels (approximately US$44.64 million), representing about 23% of the total legal volume (813 billion Riels). These financial maneuvers align with the government’s commitment to financing public investment projects aimed at propelling economic growth and enhancing productivity.

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