Kingdom signed concessional loans totalling $1.8 billion

Kingdom signed concessional loans totalling $1.8 billion

The Royal Government of Cambodia secured new concessional loans close to $1.8 billion ($1.79584 billion) from various development partners, marking an increase of two percent from the previous year, according to Cambodia Public Debt Statistical Bulletin released last week.

this total, 39 percent of the loans were agreed upon with bilateral partners, while 61 percent were facilitated through multilateral partners, the report said.

It further revealed that during the fourth quarter of 2024 alone, the Cambodian government inked agreements for new loans amounting to $763 million.

“These loans are characterised by their highly concessional nature, boasting an average grant element of around 45 percent, as highlighted by the Ministry of Economy and Finance.

“The primary objective of these loans is to finance public investment projects within priority sectors, aimed at fostering sustainable economic growth and enhancing productivity across the nation.”

At the end of 2024, Cambodia’s total public debt stock, inclusive of existing debt, stood at $12.03 billion. The government has emphasised that this level of debt remains sustainable and poses a low risk of distress.

The bulletin indicates that the present value of public and publicly guaranteed external debt to GDP is at 19 percent, significantly below the 40 percent threshold.

This strategic financial maneuvering aligns with Cambodia’s long-term aspirations to promote economic resilience and development through targeted investments in infrastructure and public services, it added.

The government signed a total of $264.3 million with South Korea last year, an 11 percent increase compared to $238.1 million in 2023, making South Korea the Kingdom’s top creditor in 2024.

Additionally, the government signed approximately $237.9 million with Japan, a decrease of $15 million, or about 5 percent, compared to $252.9 million in 2023, due to a lack of loans in the final quarter of last year. However, Japan remains the Kingdom’s second-largest creditor, as it was in the previous year.

Meanwhile, France loaned about $205.1 million, marking a 14.5 percent decline compared to $240.1 million in 2023, keeping the country in third place on the list of top creditors.

khmertimeskh