Logo of Phnom Penh Post newspaper Phnom Penh Post - Improvements for banks after budget

Improvements for banks after budget

Improvements for banks after budget

Improvements to Cambodia’s banking and finance sector are expected to come about as a result of the 2013 national budget, a Council of Ministers spokesman said.

“We will dedicate resources to ensuring macro-economic stability,” spokesman for the Council of Ministers, Phay Siphan said.

“Essentially, this means continuing a good rate of GDP growth and keeping inflation below three per cent,” he added.

These measures, in conjunction with an early warning system will be put in place as a measure to ensure the banking system does not collapse, will be “a firewall to protect Cambodia from what’s happening overseas”, Siphan said.

Charles Vann, president of the Association of Banks in Cambodia, said they have been monitoring the banking industry closely and believes banks co-operate well with the government but does not anticipate too many changes to the system in 2013.

“The figures so far for 2012 are very promising; 2013 should also be very good,” he said.

“But 2013 is an election year and, in terms of activity, election years are usually very quiet,” he added.

Four commercial banks were contacted for their comments but were unable to respond.

The agricultural sector will also benefit from the 2013 budget; $27million dollars from the national budget will be directed to infrastructure projects to grow this sector.

“Cambodia depends heavily on the agricultural sector. So it’s important to dedicate funds to stimulate it,” Siphan said.

To contact the reporter on this story: Erika Mudie at [email protected]

MOST VIEWED

  • Hundreds of children in hospital with dengue

    A serious dengue fever epidemic is affecting Cambodia, with nearly 600 children hospitalised in the five Kantha Bopha Children’s Hospitals on Monday alone, a statement posted on the Kantha Bopha Foundation’s official Facebook page said on Wednesday. Because Kantha Bopha Children’s Hospitals provide

  • Sihanoukville building collapse death toll rises to 19

    Minister of Interior Sar Kheng said on Sunday that the government will act against those responsible for the collapse of a seven-storey building in Sihanoukville on Saturday, which resulted in 19 dead and 24 injured as of Sunday evening. Sar Kheng said three Chinese nationals and one

  • Gov’t to probe Chinese exports to US via Sihanoukville

    The government is investigating allegations that Chinese companies are using Chinese-owned special economic zones in Cambodia to export goods to the US and avoid tariffs, said Ministry of Commerce spokesman Seang Thay. The move comes after US embassy spokesman Arend Zwartjes said the US had

  • Banh: The Khmer Rouge worse than sanctions and pressure

    Minister of National Defence Tea Banh said on Thursday that having sanctions and external pressure placed on Cambodia was not worse than life under the brutal Khmer Rouge regime. Tea Banh, who is also deputy prime minister, was speaking to military and ruling party officials