World Bank lends $274 mn to Cambodia to support economic recovery

PHNOM PENH (CAMBODIA): The World Bank said on Wednesday that it has approved a $274 million credit to Cambodia to help support boost the country's economic recovery and long-term resilience.

The financing for the Cambodia Growth and Resilience Development Policy Operation will support reforms that will streamline the business registration processes, promote competition, and expand access to finance for small and medium enterprises, reports Xinhua news agency.

Other reforms will enhance fiscal resilience, including by improving the management of public-private partnerships and facilitating the issuance of government debt in the domestic market, the press release said, adding that the operation will also facilitate the timely provision of relief to a broader set of vulnerable households in the event of a natural disaster or economic shock.

"This new operation will help Cambodia boost private sector competitiveness, strengthen its fiscal position, and provide assistance to its most vulnerable people," Maryam Salim, World Bank country manager for Cambodia, said.

The operation is anchored in the government's economic recovery plan, which has three broad objectives of recovery, reform and resilience, the lender said, adding that the financing provided by this operation will help alleviate some of the fiscal pressures that the government is facing.