The French government has promised to increase the volume of concessional loans to as much as €120 million ($140 million) per year to contribute to the development of Cambodia, according to Minister of Economy and Finance Aun Pornmoniroth.
The statement was made during a virtual June 21 meeting between the minister and outgoing French ambassador to Cambodia Eva Nguyen Binh, a press release on the minutes of the meeting said.
The minister said the French government had promised to expand the amount of concessional loans to €100-120 million a year, through its development arm Agence Francaise de Developpement (AFD).
He said the French government was also mobilising grant funding from the EU and other sources to contribute to the development and recovery of the Cambodian economy after the Covid-19 crisis, in line with the Kingdom’s national development policies and strategies.
“I would like to express my deep gratitude to Ms Eva Nguyen Binh for completing her diplomatic mission in Cambodia for four years, accumulating many works and achievements in contribution towards socio-economic development initiatives for the Kingdom in almost every sector – especially in health, water, electricity, agriculture and vocational training, as well as triumphs of many other public investment projects,” Pornmoniroth said.
At the meeting, Binh said French President Emmanuel Macron pledged to increase official development assistance (ODA) to 0.55 per cent of gross domestic product (GDP) next year to participate in the economic development of developing countries, especially Cambodia, mainly focusing on climate change in line with the 2015 Paris Agreement.
“I am really proud of the Royal Government of Cambodia for creating a good investment environment for the private sector and encouraging foreign investors, especially from France, to come and explore, and invest in Cambodia,” she said.
Last year, AFD made a total €12.1 billion in new commitments for development projects worldwide.