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Saturday, July 13, 2024

World Bank grants $275 million credit to enhance Cambodia’s economic expansion

The World Bank’s Board of Directors has greenlit a substantial $275 million credit package aimed at bolstering Cambodia’s long-term economic growth and resilience. This financing, sourced from the International Development Association (IDA), which offers concessional loans to the world’s poorest countries, underscores the commitment to supporting Cambodia’s recovery and development in the wake of the COVID-19 pandemic.

The credit is designated for the Second Cambodia Growth and Resilience Development Policy Financing Project, following on from the initial $274 million financing initiative approved in 2022. This project seeks to address persistent economic challenges exacerbated by the pandemic, with a focus on enhancing the competitiveness of Cambodia’s private sector, fortifying fiscal stability, and providing crucial support to vulnerable populations.

According to the World Bank, the funding will support reforms aimed at fostering an environment conducive to sustainable economic growth. Key objectives include improving governance, facilitating private sector investments, and implementing policies that promote inclusive growth. These efforts are expected to contribute significantly to Cambodia’s recovery trajectory and pave the way for long-term economic resilience.

In a statement, the World Bank emphasized the importance of targeted interventions to mitigate the impact of the pandemic on Cambodia’s economy. The financing aims to build upon ongoing efforts to strengthen the country’s fiscal foundations and enhance its capacity to withstand future economic shocks.

The approval of this credit underscores the World Bank’s partnership with Cambodia in advancing its development agenda and underscores its commitment to promoting sustainable and inclusive growth in the region. This initiative is expected to play a pivotal role in supporting Cambodia’s aspirations for economic advancement and resilience in the years ahead.

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