Logo of Phnom Penh Post newspaper Phnom Penh Post - ADB offers $15m loan for financial-sector growth

ADB offers $15m loan for financial-sector growth

ADB offers $15m loan for financial-sector growth

Cambodia and the Asian Development Bank have signed their latest loan agreement of US$15 million for the development of the Kingdom’s financial sector, according to ADB.

The money would be used for a number of development programs, including the improvement of regulatory regimes, creation of an inter-bank lending market and increased consumer access to credit, ADB said.

ADB’s loan has a 24-year term, including an eight-year grace period with an interest rate of 1 per cent and 1.5 per cent for the balance of the term.

The loan agreement, signed yesterday, marked the commencement of the third Financial Sector Program (FSP) co-ordinated by  the ADB and Cambodia, as well as the finalisation of the Kingdom’s Sector Development Strategy 2011-2020, ADB senior country economist for Cambodia Peter Brimble said yesterday.

He noted that finance was “a key pillar” of ADB’s partnership strategy with Cambodia.

The bank also offered Cambodia a grant of $1.1 million for technical assistance, with $300,000 of that to strengthen the capacity of the National Bank of Cambodia, the Ministry of Economy and Finance, the Ministry of Commerce and the Securities and Exchange Commission of Cambodia.

More than $1.5 billion in new and increased loans had been generated, and more than 12,000  jobs created, as a result of more than $75 million in assistance during the first two phases of the FSP since 2001, the ADB said.

MOST VIEWED

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Ministry’s plan for net sparks fears

    The government has ordered all domestic and international internet traffic in the Kingdom to pass through a Data Management Centre (DMC) that has been newly created by the state-owned Telecom Cambodia, in a move some have claimed is an attempt to censor government critics. Spokesman

  • China-Cambodia tourism forum held

    The Cambodian tourism sector must be prepared to welcome a growing number of Chinese tourists, as they lead the globe in the number of outbound travellers and were responsible for the most visitors to the Kingdom last year, the country’s tourism minister said on