Logo of Phnom Penh Post newspaper Phnom Penh Post - $13m bond issue

$13m bond issue

$13m bond issue

The Ministry of Economy and Finance issued more than $13 million worth of bonds

April 1 to satisfy the capital requirements of Cambodia's two state-owned insurance

companies. The bonds, which are valued at more than $2,500 each, will mature in three

years.

Mey Vann, director of the department of industrial finance at the ministry, told

the Post the bonds could not be sold because Cambodia lacked the necessary laws to

regulate financial markets.

"We borrowed the money from the National Bank [of Cambodia] in order to fulfill

the capital requirement," said Vann. "We printed the bonds and then signed

a contract with the state enterprise."

Caminco and Kampuchea Re, the two state-owned insurance companies, will pay 3 percent

interest on the bonds.

Under a sub-decree passed last October, all insurance companies are required to have

a capital investment of at least $7 million, with 10 percent lodged at the national

treasury and 50 percent pledged as an insolvency deposit.

At the time the sub-decree was issued private insurance companies criticized the

capital requirement, arguing it was excessive given the country's small insurance

market.

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