IMF to Provide Non-Repayable US$240 million Pandemic Recovery Fund to Cambodia

• 12 August 2021
• Local News
• 3362 Views

The International Monetary Fund (IMF) has approved a non-repayable US$240 million fund for Cambodia to cope with the impact of COVID-19 and restore its economy, according to a press release from Oxfam.

The Board of Governors of the IMF has approved a general allocation of the largest Special Drawing Rights (SDRs) in history equivalent to US$650 billion (about SDR 456 billion) on 2 August 2021, to boost global liquidity.

The new SDRs will become effective on 23 August 2021, when Cambodia can receive a portion of the US$240 million.

The fund that Cambodia receives will be prioritised for universal health care and social protection investments that can reduce inequalities for a fairer and more sustainable recovery from the pandemic, said Ms Solinn Lim, Cambodia Country Director of Oxfam in the press release.

The informal sector now represents 87.5% of Cambodia’s economy (ILO, 2021) and the Ministry of Planning has warned that 6 million informal workers are at risk of losing their livelihoods altogether as the pandemic persists.

Thus, it is imperative that the government puts a special focus of its relief program on supporting the informal economy workers and micro, small and medium-size businesses that are the backbone of Cambodia’s economy.

SDRs are a form of global currency that can be pumped into the global economy, with non-repayable allocations afforded to each International Monetary Fund (IMF) member country.

• Economy and Finance