Logo of Phnom Penh Post newspaper Phnom Penh Post - China bank to study loan possibilities for rice

China bank to study loan possibilities for rice

China bank to study loan possibilities for rice

Delegates from the Import-Export Bank of China will visit Cambodia next week to discuss loans for the rice-processing and exporting sector, according to government officials.

Son Kunthor, president of the state-owned Cambodian Rural Development Bank, said yesterday that Chinese delegates will come to study the feasibility of providing loans to private investors to improve Cambodia’s rice processing.

“We are currently negotiating and next week they will come to Cambodia to discuss the matter further,” he said, adding that the negotiations were far from final.

During their tour of Cambodia, the Chinese delegates are likely to visit the provinces where there are rice mills, he said.

The mills would be the same mills to which he led Cambodian business delegates in late May, as part of presentations to attract loans.

Cambodia’s rice millers needed about US$200 million in investments, he added.

The two sides have been unable to reach an agreement. The Chinese bank officials wanted the Cambodian government to insure the private loans, while the government did not see this as its responsibility, Son said.

Loan interest rates from China are usually between 1 and 2 per cent annually, much cheaper than those offered by the Cambodian Rural Development Bank’s rate of seven per cent annually, he said.

Phou Puy, president of the Federation of Rice Millers Associations and the Baitong Rice Export Company, could not be reached for a comment yesterday.

Earlier this year, however, he told the Post the federation was working closely with the government to receive the loans for improving the capacities of rice mills in Cambodia, in a push to export more rice.

No one from the Import-Export Bank of China could be reached for a comment.

The push for increased exports is a new policy of Prime Minister Hun Sen’s and aims to export one million tonnes of rice next year.

To contact the reporter on this story: Rann Reuy at [email protected]

MOST VIEWED

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as

  • The hairy little heroes saving many lives in rural Cambodia

    IN RURAL Siem Reap province, rats dare to tread where no person will, as these hairy little heroes place their lives on the line each day for the good of the local community. The rodents are the most important members of a special team, leading

  • Hun Sen warns Irish MP of EBA ‘mistake’

    Prime Minister Hun Sen on Saturday told former Irish premier Enda Kenny, still a member of the EU nation’s parliament, that the 28-nation bloc should not make a “third mistake” regarding Cambodia by using the preferential Everything But Arms (EBA) agreement to “take 16 million

  • PM warns EU and opposition on 34th anniversary of his rule

    HUN Sen reached the milestone of 34 years as Cambodian prime minister on Monday and used the groundbreaking ceremony for a new ring road around Phnom Penh to tell the international community that putting sanctions on the Kingdom meant killing the opposition. “Please don’t forget