Phnom Penh, Nov 24 The Asian Development Bank (ADB) has approved a policy-based loan of 50 million US dollars to strengthen Cambodia's financial sector and digital infrastructure, the bank said on Monday.
Through a dedicated program, the investment will support both banking and nonbanking institutions, as well as digital finance infrastructure and sustainable finance capabilities, according to an ADB press release.
"Through this investment, ADB supports the country in boosting its financial sector, laying the foundation for resilient growth, expanding financial inclusion, and unlocking private sector potential," said Anthony Gill, ADB acting country director for Cambodia.
While Cambodia's financial sector has achieved notable progress, further development is required to fully unlock its potential, reports Xinhua news agency, citing the release.
The approved first phase of the investment program focuses on boosting the regulatory environment, financial stability, market depth, and consumer protection, as well as developing strategic plans for financial technology, regulatory frameworks for digital assets and cryptocurrencies, and peer-to-peer financing, the press release said.
Earlier on November 11, the ABD said that the overall impact of the current US tariff imposed on Cambodian products will be negligible, but further tariff escalation would disrupt the labour market in the Southeast Asian country.
"Economic modelling confirms that the current tariff is indeed manageable, while demonstrating that a higher tariff would have dire consequences for Cambodian families through unemployment and poverty," Milan Thomas, ADB country economist for Cambodia and lead author of the brief, said in a news release.
On August 1, the US imposed a 19 per cent tariff on all goods imported from Cambodia.
"The high tariff would slow economic growth by nearly 1 percentage point, push over 100,000 people into unemployment, and increase the poverty rate by over 1 percentage point, reversing some of the recent progress in poverty reduction," the policy brief said.
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