Monday, February 6, 2023
Khmer Daily Cambodia News
34 °c
Phnom Penh
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
The Khmer Daily
No Result
View All Result
Home ASIA Cambodia

Moody’s: Cambodia not vulnerable to foreign debt

January 19, 2021
in Business, Cambodia, National
0
Moody’s: Cambodia not vulnerable to foreign debt
0
SHARES
33
VIEWS
Share on FacebookShare on Twitter

Cambodia’s debt vulnerability remains contained, a Moody’s Investor Service report said.

Despite holding a negative outlook on the Asia-Pacific (APAC) region, the rating agency maintained Cambodia’s B2 Stable credit rating after having downgraded several frontier markets including Thailand, Sri Lanka, Laos and Myanmar last year. “The widespread fallout from the pandemic and measures adopted by sovereign [states] to contain it have created an economic, fiscal and social shock that will last into 2021 and beyond,” the rating agency warned.

Moody’s credited Cambodia’s “robust GDP [gross domestic product] growth prospects, a narrow export base reliant on tourism and low per-capita incomes” for its confidence in Cambodia’s debt burden.

“Cambodia is particularly exposed to a slowdown in China given their extensive economic linkages – China is the largest foreign investor with the country representing 43 percent of foreign direct investment and Chinese tourists accounting for 36 percent of arrivals in 2019,” Moody’s Vice-President and Senior Analyst Anushka Shah said.

China remains Cambodia’s primary moneylender, with some 40 percent of its $7.6 billion having been loaned by the Chinese government, according to official figures.

Moody’s cautioned, however, that cross-border debt repayments “remain large relative to foreign reserves”.

“In these cases, sustaining access to cross-border funding markets or external liquidity assistance will depend highly on a commitment to and demonstrated traction on reform and greater macroeconomic fiscal stability,” said the Moody’s report.

While Cambodia’s economy is expected to remain in recovery mode in 2021, it is important to note that the slowdown has its basis in more than its biggest trading partner.

In the midst of the global pandemic, the Chinese government delivered 1,000 containers of raw materials – 60 percent of which was meant for production in the garment and footwear industry – to help the Kingdom’s largest export industry weather the economic storm.

The Kingdom was set to face a significant drop in demand for high-value exports because of trade restrictions – and the impact on growth from the drop in Chinese tourists appears to be a key part of the current slowdown. In 2019, a total of 6,610,592 tourists – more than 38 percent of whom were Chinese –  visited from the mainland. Despite the downturn,  the World Bank forecasts that the Cambodian economy will bounce back and grow by 4 percent this year after having contracted by 2 percent in 2020.

“Significant uncertainty remains in Cambodia’s growth outlook. The most important policy goal must be to urgently regain jobs lost and suspended due to the pandemic,” said Inguna Dobraja, World Bank Cambodia country manager.

“It is essential that domestic and foreign investment are encouraged to take advantage of recent bilateral and regional free trade agreements. This would be possible through the prompt introduction of competitive investment law and incentive schemes, together with moves to improve the ease of doing business.”

This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.

Tags: Cambodia
Previous Post

Cambodia salt industry feeling the pinch of the pandemic

Next Post

National Bank of Cambodia (NBC) governor, named 2021 central banker of the year for the Asia-Pacific region

Related Posts

Cambodia confirms readiness to exit the Least Developed Countries (LDC) status

Cambodia confirms readiness to exit the Least Developed Countries (LDC) status

by Khmer Times
February 3, 2023
0
7

Cambodia confirmed its readiness to exit the Least Developed Countries (LDC) status, saying that studies on the impacts of the...

Cambodia cashew production likely to touch 1 million tons this year

Cambodia cashew production likely to touch 1 million tons this year

by Khmer Times
January 31, 2023
0
9

The cashew season has begun with the start of picking cashew nuts in the Kingdom, and growers of the commodity...

Cambodia GDP expects to growth 5.6 percent in 2023

Cambodia GDP expects to growth 5.6 percent in 2023

by Khmer Times
January 26, 2023
0
3

Cambodia is expected to register a 5.6 percent GDP growth in 2023, according to the Ministry of Economy and Finance....

Most Popular

Passenger in Nepal plane crash livestreams last seconds of his life on Facebook

Passenger in Nepal plane crash livestreams last seconds of his life on Facebook

January 18, 2023
31
Nepal plane crash searchers rappel, fly drones to find last passengers

Nepal plane crash searchers rappel, fly drones to find last passengers

January 18, 2023
26
Prince William feared Prince Harry was being ‘brainwashed’ by his therapist

Prince William feared Prince Harry was being ‘brainwashed’ by his therapist

January 9, 2023
17
Japanese firm to study urban, provincial railways in Cambodia

Japanese firm to study urban, provincial railways in Cambodia

January 11, 2023
16
Cambodia to build $300 million International airport on Koh Rong Island

Cambodia to build $300 million International airport on Koh Rong Island

January 19, 2023
16
UK paper group bids to throw out Prince Harry and others’ privacy lawsuits

UK paper group bids to throw out Prince Harry and others’ privacy lawsuits

January 14, 2023
15

© 2020 By Khmer Daily News

No Result
View All Result
  • Home
  • Latest
  • Cambodia
  • ASIA
  • World
  • Business
  • Tech

© 2019 The Khmer Daily.

error: Content is protected !!