World Bank approves US$275mil in credit to support Cambodia's economic growth

PHNOM PENH: The World Bank has approved US$275 million in credit to support Cambodia's efforts to promote long-term economic growth and resilience, the lender said in a news release on Friday (June 21).

The financing will promote reforms that boost private sector competitiveness, strengthen the country's fiscal position and provide assistance to the most vulnerable.

"While Cambodia's economy has recovered from the impacts of the Covid-19 pandemic and subsequent shocks, the focus is now shifting toward achieving sustained high quality growth," said Maryam Salim, World Bank country manager for Cambodia.

"This new operation will boost private sector competitiveness, strengthen the government's fiscal position, provide assistance to the most vulnerable Cambodians," she added.

The Covid-19 pandemic led to Cambodia's first economic contraction in 25 years, the news release said, adding that the economy has since recovered, though growth has not returned to its pre-pandemic trend.

The situation reflects both the global economic slowdown and structural challenges to the country's growth model, the news release said.

Cambodia's structural challenges include weak productivity growth, low human capital formation and barriers to private business formation and competition, it added.

The new operation supports reforms to address challenges, the news release said, adding that it will help create an environment in which firms can enter, exit and compete fairly.

The operation will also facilitate the timely provision of relief to a broader set of vulnerable households in the event of natural disasters or economic shocks, improve environmental regulation and bolster disaster risk management, it said. - Xinhua

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Cambodia , world , bank


Next In Aseanplus News

Thai businesses unfazed as Laos switches to Chinese benzene
Japan PM apologises to forced sterilisation victims
HK actor Bosco Wong and K-pop star Jackson Wang spotted in Malaysia
Bangladesh students mourn classmates killed in job quota protests
Cambodia to send three athletes to Paris Olympics
Singapore-Laos clean power deal stuck over transmission: Sources
Myanmar temple city pines for tourists as conflict rages
Bangkok hotel cyanide deaths: American woman suspected of poisoning others before killing herself: Thai police
Philippines, China agree to set up new channels to handle South China Sea rows: Source
Singapore DPM visits Universiti Brunei 's botanical research centre, Balai Khazanah

Others Also Read