World Bank Provides US$274m in Loans to Revive Cambodia’s Economy

• 22 December 2022
• Local News
• 1033 Views

The World Bank (WB) has provided an additional US$274 million in loans to help the Cambodian economy recover from the recent crisis, according to a press release from the World Bank on 20 December. 

The loan is provided by the International Development Association (IDA), a World Bank fund to help poor countries, with an additional US$200 million in financing provided to Cambodia in 2021. 

According to the World Bank, Cambodia’s economy has been hit hard by the COVID-19 pandemic, with GDP falling by 3.1% by 2020, the first major decline in the economy for the last 30 years. 

The Cambodian economy was also affected by the ongoing war in Ukraine, the economic downturn in the United States, and slow growth in the Chinese economy, as well as the adverse effects on Cambodia’s business outlook. 

Besides, data analysis shows that the poverty rate in Cambodia has increased by 2.8%, pushing about 460,000 people back into poverty. 

The loan will help support the business registration process, enhance competitiveness, and expand access to finance for small and medium enterprises. It also helps will increase fiscal resilience, improve the management of public-private partnerships, and facilitate the sale of government bonds in the domestic market. 

This will also provide assistance to vulnerable families in the event of a natural disaster or economic crisis in the future. 

• Economy and Finance
• Investment and Funding