Logo of Phnom Penh Post newspaper Phnom Penh Post - World Bank greenlights $200M credit for Cambodian Covid fight

World Bank greenlights $200M credit for Cambodian Covid fight

Content image - Phnom Penh Post
A health worker administers the Sinovac vaccine to a man in Phnom Penh's Por Sen Chey district on June 16. Heng Chivoan

World Bank greenlights $200M credit for Cambodian Covid fight

World Bank on June 24 approved a $200 million International Development Association (IDA) credit for the Cambodia Relief, Recovery and Resilience Development Policy Financing Project (DPF), to provide a shot in the arm for the Kingdom’s Covid-19 fight and drive towards economic recovery.

"The project will help Cambodia deal with the Covid-19 crisis by providing timely and targeted relief to affected people, facilitating robust recovery through structural reforms and building resilience against future economic shocks," the Washington-based multilateral lender said.

The bank pointed out that the pandemic has triggered unprecedented socio-economic turmoil in Cambodia, which is now grappling with the “February 20 community event” – the worst coronavirus outbreak since the pandemic took hold in the Kingdom.

Last year’s 3.1 per cent decline in gross domestic product (GDP) was the Kingdom’s first contraction in thirty years, it noted.

“The sectors most impacted by the crisis – including garments, tourism and construction – are also those which account for much of the employment in the country, creating additional challenges for a sustained economic recovery.

“In the absence of significant mitigation measures, the pandemic could result in sharp rises in unemployment and poverty, with the number of people falling into poverty expected to swell by nearly one million,” the bank added.

World Bank country manager for Cambodia Inguna Dobraja said: “There is a clear need in Cambodia to provide quick-disbursing resources in support of a comprehensive, government-led programme that will protect the poorest from the impacts of the crisis and assist with the country’s economic and social recovery.”

The bank noted that the government has taken several emergency response measures and is drawing up a Post-Covid-19 Economic Recovery Plan.

"This latest DPF will assist the government’s efforts in mitigating the immediate fallout of the pandemic by supporting actions that provide financial relief to affected households and firms.

“These actions include the introduction of reforms to improve the business environment, as well as measures to strengthen public finance management and revenue-mobilisation institutions.

“This project represents an integral part of the World Bank Group’s broader Covid-19 response in the country and is part of a package of budget-support operations being provided by a number of Cambodia’s development partners, including the Asian Development Bank, the European Union and the Japan International Cooperation Agency,” it said.


  • All Covid restrictions for inbound travellers lifted

    Cambodia has apparently taken the final step towards full reopening of the country without Covid-19 restrictions by removing all requirements for inbound travellers, who until now had to show health certificates indicating that they have tested Covid-19 negative in the past 72 hours as well as

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Mushrooming borey projects and home financing – a cause for concern?

    A spurt in housing developments is typically a sign of a growing economy but underneath all that might lay some anxiety of credit growth as developers offer financing to buyers at higher rates, an activity the central bank identifies as ‘shadow banking’ Earlier this year,

  • Thai Senate delegates in Cambodia to discuss anti-graft co-op

    A delegation from Thailand's Senate was in Phnom Penh on September 28 to meet their Cambodian counterparts to discuss strategies for fighting corruption and enhancing cooperation. The Thai delegates were from its Senate’s Committee on Studying and Inspecting Corruption, Misconduct and Strengthening Good Governance. They

  • Textile industry minimum wage now $200

    The official minimum wage for workers in textile-related sectors including garment, footwear, and travel goods for 2023 was pegged at $198, with Prime Minister Hun Sen stepping in to add $2 to the total, making it $200 per month. The Ministry of Labour and Vocational Training made the announcement