IMF Report Cites Key Economic Reforms
Despite an economic forecast of 6.5 percent growth for Cambodia this year, the International Monetary Fund (IMF) warned in a report released Monday that the government must continue to develop infrastructure, increase public revenues and practice fiscal safeguarding in order to sustain growth in the future. Among the recommendations made in the IMF’s second annual Article IV report the National Bank of Cambodia (NBC) should stop issuing new bank licenses in an oversaturated sector that already has 32 operational commercial banks and six specialized banks. “A moratorium on bank licenses would provide a critical window to build adequate supervisory capacity and improve the balance between the degree of competition and health of banks,” the report states. The report also says that the NBC should increase the reserve requirement of banks, currently set at 12 percent for foreign currency reserves, in order to safeguard against inflation. …
