Cambodia Allocates USD 2.7 Billion in SDR Borrowing for 2025 Development Boost Under Financial Law

Cambodia’s government will borrow 2 billion Special Drawing Rights (SDRs), equivalent to approximately USD 2.7 billion, to finance critical projects in 2025. This initiative, part of the Finance Law approved on 12 December 2024, aims to strengthen infrastructure, improve living standards, and support economic growth across key sectors.

The funds will be strategically allocated to vital areas:

  • Electricité du Cambodge: 203.45 billion riels (approximately USD 50.5 million) to expand energy access and enhance grid reliability.
  • Phnom Penh Autonomous Water Supply Authority: 203.45 billion riels (approximately USD 50.5 million) to improve the clean water supply in the capital.
  • Siem Reap Autonomous Water Supply Authority: 61.5 billion riels (approximately USD 15.2 million) to boost water capacity in Siem Reap, a vital tourist hub.
  • Rural and Agricultural Development Bank & SME Bank of Cambodia: 122.07 billion riels (approximately USD 30.4 million) to invest in rural development and empower small and medium-sized enterprises.

In addition to SDR borrowing, the Cambodian government will issue bonds worth 500 billion riels (approximately USD 124.5 million) to support investments and ensure fiscal stability. The bond issuance is part of a broader strategy to promote domestic funding mechanisms, reduce reliance on foreign borrowing, and maintain a balanced national budget.

This financial strategy underlines the government’s commitment to sustainable development, targeting infrastructure enhancements, energy access, water supply, and rural investments to improve citizens’ quality of life.

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