Logo of Phnom Penh Post newspaper Phnom Penh Post - Low interest loans to be offered by Japan

Low interest loans to be offered by Japan

Low interest loans to be offered by Japan

Projects can receive 40-year, 0.01 percent loans from the Japanese government

CAMBODIA has been given access to special, low-interest loans from the Japan International Cooperation Agency (JICA), said Yukihiro Shibuya, from Cambodia's JICA office. The funds would be available at a miniscule 0.01 percent interest rate over 40 years, with a  10-year grace period for seven projects.

He said Japanese official development assistance loans in Cambodia have focused on economic infrastructure, especially to attract foreign direct investment.

The major projects have been the rehabilitation and expansion of the Sihanoukville Port, the development special economic zones and telecoms upgrades.

Japan "has offered low-interest loans for Cambodian development projects since 1999", said Pol Sittha, an investment officer with the Ministry of Economy and Finance.

But opposition lawmaker Son Chhay was sceptical about the mounting foreign debt.  

"I am very worried about the increasing debt. The government has borrowed a lot of money from foreign countries who say that this is just

donated money," he said.

"I want the government to clearly specify that these are loans, not just donations.

"The government has to publicise the loans to the National Assembly," he added. 

MOST VIEWED

  • Hun Sen’s China visit ‘a good opportunity’

    Prime Minister Hun Sen’s visit to Beijing on Sunday to discuss economic and trade issues presents a good opportunity for the Kingdom to strengthen Chinese ties and counter punitive measures by the West, an analyst says. The prime minister’s four-day official visit to

  • Former chief bodyguard receives royal pardon

    The former chief bodyguard of late Senate president Chea Sim has received a royal pardon nearly eight years after he was sentenced to 15 years behind bars on several charges, according to a royal decree dated November 12, last year, and obtained by The Post on Wednesday.

  • Close to the edge: Hair raising pictures from Kulen Mountain

    A new hair raising attraction on Kulen Mountain has finally opened to the public, with people flocking to the protruding cliff edge overlooking green mountainous forests to take photographs. The giant overhanging rock is situated in an area known as Mahendraparvata – an ancient city of

  • US warned not to interfere despite successful meeting

    A senior Ministry of National Defence official said the Tuesday meeting between the US Deputy Assistant Secretary of Defence for South and Southeast Asia Joseph H Felter and General Neang Phat had helped strengthen relations between the two countries’ militaries. However, a senior Cambodian People’