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.


  • First Khmer woman to pass out of West Point

    The life of a soldier certainly isn’t for everyone. The training is gruelling, the hours long and there’s no room for excuses. On top of that, soldiers must be ready to respond to sudden threats at a moment’s notice. Just ask Sithyka

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • Deminers unearth ancient lion statue

    Cambodia Mine Action Centre (CMAC) director-general Heng Ratana told The Post on Tuesday that a statue of a lion was found by mine clearance experts while they were digging for a development project. It was sent to the Ministry of Culture and Fine Arts last