Logo of Phnom Penh Post newspaper Phnom Penh Post - PM asks international lenders to keep interest rates low

PM asks international lenders to keep interest rates low

Prime Minister Hun Sen poses for a photograph with garment workers at an event on Wednesday in Phnom Penh’s Por Sen Chey district.
Prime Minister Hun Sen poses for a photograph with garment workers at an event on Wednesday in Phnom Penh’s Por Sen Chey district. Facebook

PM asks international lenders to keep interest rates low

Prime Minister Hun Sen appealed to international lending agencies to not increase interest rates on loans used for Cambodia’s development, adding that despite recent economic progress that has helped reduce poverty, the Kingdom needs low interest rate lending to continue growth.

Speaking to a crowd of nearly 15,000 garment factory workers, Hun Sen cited a recent World Bank report that showed that Cambodia had almost eradicated the levels of extreme poverty in the Kingdom. However, he urged that this success should not convince international lenders to consider raising interest rates.

“As a country moves out of poverty they confront different criteria for receiving grants and loan interest rates may increase for example from 1 percent to 5 percent,” he said, adding that Cambodia was still in need of concessional loans.

“Please, do not raise the interest rate on our loans, as Cambodia has not yet completely overcome its obstacles in development, and cannot repay loans with high interest rates.”

According to a World Bank report released earlier this week, Cambodia has reduced its levels of extreme poverty to the single-digits, becoming classified by the bank as an “out-of-extreme-poverty” country. However, the report said its middle class remains nearly nonexistent, and approximately half of its population is highly susceptible to economic shocks.

At the end of 2016, Cambodia had a total outstanding public debt of $5.8 billion, or approximately 29.3 percent of its GDP, according to the Cambodia Public Debt Statistical Bulletin.

China is by far the Kingdom’s largest creditor, as almost half of Cambodia’s outstanding debt is owed to this economic powerhouse. The Asian Development Bank (ADB) and World Bank are the second and third largest creditors, respectively, accounting for 19 percent and 9 percent of Cambodia’s total debt.


  • PM to vet NY holiday dates

    The Ministry of Economy and Finance submitted a letter to Prime Minister Hun Sen asking him to formally set a five-day national holiday from August 17-21 to make up for the Khmer New Year holiday in April that was postponed. Finance minister Aun Pornmoniroth sent

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom produces PPE gear

    Medical supplies from Cambodia have been donated to member countries of the Asian Development Bank (ADB) to assist in the fight against Covid-19, said an ADB report published on July 9. The report stated that the supplies were donated as a response to global efforts to

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • Battambang artist brings giant animals to life

    The giant reptile’s gaping mouth appears ready to consume its latest victim. It stands taller than a person and is incredibly life-like with authentic colours, a long spiky tail and detailed scales adorning its entire body. If it wasn’t 13m long, you may

  • Fifteen Cambodians from Saudi get Covid-19

    The Ministry of Health on Sunday confirmed 15 more imported cases of Covid. The 15 men ‒ all Cambodian aged 21 to 33 ‒ arrived from Saudi Arabia on Friday via a connecting flight in Malaysia. They were travelling with 79 other passengers, three of them women. The ministry said 80 of the

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen