MEF reports zero debt with China in 2024

MEF reports zero debt with China in 2024

Although Cambodia’s public debt exceeded $12 billion by the end of last year, the Ministry of Economy and Finance (MEF) yesterday reported that no loans were signed with China, the Kingdom’s former top creditor that provided over $300 million in 2023.

The funding freeze issues between the ‘Ironclad Friendship’ was finally clarified in the fourth-quarter (Q4) report of the “Cambodia Public Debt Statistical Bulletin” Volume 25 of MEF, released on March 10.

According to the Q4 report approved by the MEF, Cambodia’s total public debt stock stands at $12.3 billion, with 99 percent ($11.9 billion) being public external debt.

The overall debt is composed of 62 percent ($7.72 billion) from bilateral development partners (DPs) and 38 percent ($4.67 billion) from multilateral DPs, the statement added.

In terms of loan from bilateral DPs, the Royal Government of Cambodia (RGC) 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, RGC 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 Q4 term 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.

As for China, Cambodia’s top creditor in 2023, which provided a total of $302.4 million, no official loans were signed throughout the year, resulting in a zero amount between the two countries.

In terms of multilateral DPs, RGC signed a total of $631.9 million with the World Bank, a 26 percent rise compared to $501.3 million in 2023.

Furthermore, the Asian Infrastructure Investment Bank (AIIB), a multilateral development bank headquartered in Beijing, provided zero funding to Cambodia this year, despite offering a $33 million loan in 2023.

The International Fund for Agricultural Development (IFAD), a specialised agency of the United Nations, provided $5 million last year, a significant drop from $47.9 million in 2023.

In contrast, the Asian Development Bank (ADB), which loaned about $190 million in 2023, increased its financial support, providing a total of $388.6 million last year, a 204 percent rise compared to the same period.

Lastly, the European Investment Bank (EIB), a new creditor, began lending $62.8 million to Cambodia in Q4 of 2024.

Based on MEF report, RGC signed new concessional loans with DPs totaling $763.8 million in 2024.

Overall, Cambodia signed new concessional loans with DPs amounting to $1.79 billion, accounting for 81 percent of the ceiling permitted by law, with 39 percent signed with bilateral DPs and 61 percent with multilateral DPs.

The loans signed by the RGC last year represented an increase of approximately two percent compared to 2023, the report added.

khmertimeskh