Logo of Phnom Penh Post newspaper Phnom Penh Post - RDB funds to receive $7 billion expansion

RDB funds to receive $7 billion expansion

RDB funds to receive $7 billion expansion

THE Cambodian government plans to increase funding to the Rural Development Bank by US$7 million at the end of 2010, according to bank general director Sun Kunthor.

The RDB received funding of $13 million during 2009, capital which is lent to domestic rice miller associations to purchase paddy for rice production.

“We will work hard providing loans – with this capital, we hope more paddy will be bought,” he said yesterday.

Although the government-owned RDB will have a total capacity of $20 million at the end of the year, Sun Kunthor said the capital could not be used to purchase all of the Kingdom’s surplus paddy, but would still provide economic benefit.

“We will use the additional capital to provide loans to support the policy of boosting rice exports,” he said.

The government targets increasing funding up to $37 million for the RDB in the coming years, according to Sun Kunthor.

Suor Kheang, president of Kampong Cham province’s rice millers association, said most members use personal capital to buy paddy, as the bank’s lending was still relatively small.

“We do not depend on this loan too much because we also have our own capital to buy some paddy,” he said. The Kampong Cham millers’ association was lent approximately $500,000 last year.

Cambodia harvested approximately 7.58 million tonnes of paddy last year, about 3.5 million tonnes more than local demand.

Prime Minister Hun Sen introduced new policies on August 17 aimed at boosting economic growth through increased rice harvests and exports.

“If rice exports can reach 3 million tonnes, the value will be as much as $2.1 billion or about 20 percent of the country’s gross domestic product,” he said earlier this month.

MOST VIEWED

  • Negotiations on EBA being held

    In an effort to defuse tensions, a senior government official said Cambodia is negotiating with the European Union (EU) on the Everything But Arms (EBA) trade deal, which allows the Kingdom to export goods to the 28-member bloc tariff-free. The EU notified Cambodia on October 5

  • Ministers to tackle sea pollutants

    Preah Sihanouk provincial authorities and members of local communities have collected 77 tonnes of water hyacinth at a Sihanoukville beach, Preah Sihanouk Provincial Hall spokesperson Or Saroeun said. He told The Post yesterday that the aquatic weeds had been floating along some of the province’s

  • Chinese police escort deported scam suspects

    Ninety-one Chinese nationals accused of extorting money from victims in a Voice over Internet Protocol (VoIP) scam were deported from Phnom Penh International Airport on Monday under the escort of 182 Chinese police personnel. General Department of Immigration head of investigations Ouk Hay Seila told reporters

  • Sam Rainsy, government group set to clash at IPU Geneva meet?

    Opposition figure Sam Rainsy has been invited to speak at the General Assembly of the Inter-Parliamentary Union (IPU) in Geneva, according to a former Cambodia National Rescue Party (CNRP) lawmaker. A government delegation is also set to attend the meeting, a National Assembly press release