Cambodia’s public debt at $11.78B
Cambodia’s public debt at $11.78B
Cambodia has a total public debt of $11.78 billion by the end of the third quarter of 2024 which continues to remain at sustainable and low risk, according to a report from the Ministry of Economy and Finance, yesterday.
As much as 99 percent or $11.67 billion of this is public external debt (comprising 64 percent from bilateral development partners (DPs) and 36 percent from multilateral DPs) and one percent or $115 million public domestic debt, the report said.
The composition of public debt is comprised of USD 45 percent, SDR 19 percent, JPY 12 percent, CNY 11 percent, EUR eight percent, and local and other currencies five percent.
From the first to the third quarter of 2024, new loans signed with DPs stood at $1.07 billion, equivalent to SDR 786.68 million, accounting for 46 percent of the ceiling permitted by law (SDR 1.7 billion).
Of this, 38 percent was signed with bilateral DPs and 62 percent with multilateral DPs. The loan amount increased by approximately seven percent compared to the same period last year.
Overall, all the loans are highly concessional with an average grant element of around 47 percent, according to the report. The purpose of these new loans is to finance public investment projects in the priority sectors that support long-term sustainable economic growth and increase economic productivity/production.
All the key debt indicators in 2024 are well below the thresholds. The present value of public and publicly guaranteed external debt to Domestic Gross Product (GDP), is at 19 percent compared to the 40 percent threshold.
Speaking on the report, Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, said that the sustainability of Cambodia’s public debt is due to a robust public debt management system.
This includes a comprehensive legal framework, well-defined policies, strategies, and procedures governing all aspects of operations, enhanced institutional capacity, sufficient human resources, and advanced IT systems for managing operations and storing data.
Strict and careful implementation of the strategic measures outlined in the Public Debt Management Strategy will enhance Cambodia’s borrowing capacity, Pornmoniroth said.
“This will enable the Royal Government to secure additional financing to support public investment in priority sectors, thereby accelerating economic diversification and competitiveness.
These efforts form the foundation for sustaining high and inclusive economic growth, advancing toward the 2030 milestone and the Vision of Cambodia 2050,” he said.
Seun Sam, Policy Analyst at the Royal Academy of Cambodia, told Khmer Times that Cambodia’s economic capacity remains sufficient to repay its obligations to development partners and lending countries.
“Cambodia is a developing country and we need funding from various sources, such as donors and other development partners, to develop our nation.
The public debt of $11.78 billion is a lot, but in terms of Cambodia’s revenue generation capacity, it remains manageable,” Sam said.
