Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia earns high marks in IMF study

Cambodia earns high marks in IMF study

Cambodia earns high marks in IMF study

T HE International Monetary Fund (IMF) is optimistic that economic stability and improvements in Cambodia will continue and lead to sustained growth and development of the country.

"In many areas there has been lots of progress, in terms of some macroeconomic aggregates which are available, the situation is stable, it's very good," Reza Vaez-Zadeh, senior IMF representative in Cambodia, said.

Achievements include contained inflation, a controlled budget, improvements in the government's foreign-exchange reserves and a reasonably stable exchange rate, Vaez-Zadeh said on Sept 29.

The latest edition of a monthly IMF report said Cambodia was "emerging from isolation as economic reforms take hold" and that financial stability has returned .

"Macroeconomic stability has been restored as a result of firm policy measures, exceptional donor support and a return of confidence," said the IMF Survey in its October edition, which was released on Sept 26.

It said the government has established an "initial track record of implementing firm economic policies" and prepared an economic programme to stabilize, rebuild and reform the economy during 1994-96, including an aim to maintain real economic growth of seven to eight percent annually.

The IMF report was optimistic about Cambodia's future prospects for maintaining "hard-won results" the government had made so far if strong policies were continued.

"With strong policies and the vital support of the international financial community, the challenge facing Cambodia will be to build on the hard-won results to date and establish a foundation for sustained growth and development," it said.

In May this year the IMF resident office in the capital, Phnom Penh, which had been closed since 1974, was reopened and the IMF approved a three-year loan to Cambodia worth $120 million for financial assistance, the report said.

"Economic activity rebounded and the balance of payments strengthened, permitting an increase in gross external reserves of almost $50 million, bringing the total to $70 million at the end of 1993," it said.

Vaez-Zadeh said the government so far had been able to contain all expenditures in its 1994 budget and Cambodia would not face major problems with the budget unless "a very huge drop in foreign assistance" caused an economic shortfall.

"The budget for 1994 has so far been implemented very well," he said, adding that all the financial targets the IMF has set in their agreement with the government had been achieved so far.

The IMF Survey hailed the August implementation of a liberal foreign-investment law and said domestic investment would increase to meet infrastructure needs in the public sector.

Cambodia, one of the poorest of the poor after more than two decades of war and turmoil, has taken great strides towards balancing its books and increasing domestic revenues in the past year.

MOST VIEWED

  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • International air visitor arrivals dip 93%

    The number of foreign tourists entering Cambodia through the Kingdom’s three international airports witnessed a sharp 92.5 per cent year-on-year decline in the first seven months of this year, according to the Ministry of Tourism. The airports handled 51,729 international tourists in the January-July period versus

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in

  • Is Cambodia’s microfinance sector running its course?

    Economic growth and the strength of the banking system might have prompted a slow decline of the microfinance segment that has been raising a population ‘The MFI business model is over,” opined David Van, a Cambodian investment expert, recently. He felt that in a couple