Kiripost News: Cambodia signed about $1.22 billion in concessional loans with development partners in 2025 - 45 percent of its $2.8 billion borrowing ceiling and 31 percent less than in 2024 - to finance priority infrastructure and development projects, while maintaining a sustainable public debt level of $13.05 billion and planning to borrow up to $3.1 billion in 2026
Cambodia signed approximately $1.22 billion in new loans with development partners in 2025, reaching 45 percent of its $2.8 billion borrowing ceiling approved by the law. This marks a 31 percent decrease compared to 2024, with plans to borrow up to $3.1 billion in 2026.
According to the Cambodia Public Debt Statistical Bulletin on March 10, the government signed a new loan with development partners for about $1.22 billion in 2025, equivalent to Special Drawing Rights (SDR) 890.06 million.
A new signed loan accounted for 45 percent of the $2.8 billion (SDR 2,000 million) ceiling permitted by the financial management law, of which 33 percent is signed with bilateral development partners and 67 percent is signed with multilateral development partners
It said that in bilateral loans, new loans were signed from France, Germany, Japan and Korea, while multilateral loans come from the Asian Development Bank (ADB), Asian Infrastructure Investment Bank, European Investment Bank, International Fund for Agricultural Development and World Bank.
“The loan signed in 2025 decreased by approximately 31 percent compared to 2024,” the statement noted, adding that all the loans are highly concessional with an average grant element of approximately 39.3 percent.
“The purpose of these newly signed loans is to finance public investment projects in priority sectors that support long-term sustainable economic growth and increase economic productivity or production,” it said, stressing that the current public debt situation continues to remain “sustainable” and “low risk” of debt distress.
Chey Tech, a socio-economic analyst, said the move is a positive sign for Cambodia’s economy and development as it prepares to graduate from Least Developed Country status by 2029, adding that reliance on loans from partners such as the ADB and the World Bank has declined as the government increasingly funds projects through its own budget.
“We see recent projects, such as infrastructure and road rehabilitation in Siem Reap and Sihanoukville, and a recent approval in late 2025 on the restoration of 16 roads in Battambang, using the budget of the Ministry of Economy and Finance instead of loans from development partners,” he noted.
Tech stated that this reflects the strength of Cambodia’s economy and national revenue, enabling the country to repay foreign debts while allocating state funds for self-development, particularly for major investments in social development, social protection and infrastructure.
A report said that 79 percent of the new loans were designated for infrastructure development, such as energy, irrigation, transport and water supply, and 21 percent for non-infrastructure, including agriculture, education, health and other priorities.
As of the end of 2025, national debt amounted to $13.05 billion, of which two percent ($246.83 million) was domestic debt and 98 percent ($12.81 billion) was external debt.
In 2026, the Kingdom plans to borrow up to 2.25 billion SDR, about $3.1 billion, for public investment projects, marking a 12.5 percent increase from last year’s ceiling of $2.6 billion.
Source: https://kiripost.com
