Cambodian Gov’t Sets Ambitious USD 13bn Loan Ceiling Over Five Years

• 28 August 2024
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The Cambodian government has unveiled a comprehensive public debt management strategy for 2024-2028, setting a borrowing limit of up to US$13.5 billion over the next five years. This strategic plan outlines annual borrowing from financial institutions and foreign development partners, ranging between US$2.3 billion and US$2.7 billion.

According to the new strategy, while the government aims to maintain annual borrowing within the specified range, it reserves the flexibility to increase this amount up to USD 3.4 billion annually if required, ensuring that total borrowing does not exceed the five-year cap of USD 13.5 billion.

In addition to foreign borrowing, the government plans to issue domestic government bonds worth between 500 billion to 1 trillion riels annually, with a maximum of 1.2 trillion riels per year, not exceeding a total of 4 trillion riels (approximately USD 1 billion) over the five-year period.

The funds raised through these borrowings will be directed towards critical public investments in infrastructure projects such as roads, bridges, irrigation systems, ports, urban water supply, wastewater treatment systems, and vocational training initiatives aimed at bolstering Cambodia’s logistics and digital industries.

PM Hun Manet emphasised the importance of this strategy in the context of global economic uncertainty. He stated, “In response to the above situation and in the context of the progressive socio-economic development of Cambodia, as well as to support the implementation of the first phase of the Pentagon Strategy, the Royal Government of Cambodia has decided to implement the strategy which will continue to be strictly implemented with high caution and be flexible to the global situation, the region, and the context of Cambodia.”

As of the first quarter of 2024, Cambodia’s public debt stands at USD 11.9 billion, indicating the significance of careful debt management in the face of ongoing global and regional economic challenges. (Read more)

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