Cambodia’s debt a concern
An International Monetary Fund and World Bank report has questioned Cambodia’s ability to deal with future financial crises if government borrowing increases. While the report indicated that Cambodia was at low risk for severe debt problems, it highlighted the need for effective management of new debt and rapidly growing build-operate-transfer, or BOT, projects, which include the hydropower dams and road reconstruction conducted by Chinese companies. This month alone, the Kingdom courted more than US$800 million in Chinese loans for infrastructure projects. In two different speeches in February, Prime Minister Hun Sen said Cambodia would borrow $302 million from China for roads and irrigation systems, and would apply for an additional $500 million for similar construction. The joint report estimated Cambodia’s debt to countries at about 28 per cent of gross domestic product for both 2011 and 2012. …
http://www.phnompenhpost.com/index.php/2012022954764/Business/cambodias-debt-a-concern.html
