PHNOM PENH (Agencies): The Cambodian government had a total public debt stock of US$11.24 billion as of 2023, according to the Cambodia Public Debt Statistical Bulletin released by the Ministry of Economy and Finance on Monday.

The public debt comprised 64 per cent from bilateral development partners and 36 per cent from multilateral development partners, the bulletin said.

The composition of the public debt stock was comprised of 46 per cent in USD, 19 per cent in SDR (Special Drawing Rights), 11 per cent in CNY, 11 per cent in JPY, 7 per cent in EUR and 6 percent in local and other currencies, the bulletin said.

Last year, the government had signed new concessional loans with development partners in total amount of US$1.81 billion, which accounted for 79 per cent of the ceiling permitted by law, it said.

"Overall, all the loans are highly concessional with an average grant element of around 45 per cent," the bulletin said.

The bulletin said the Southeast Asian country had paid debt services to development partners in the amount of US$519.7 million in 2023.

Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth said all of the loans are used to finance public investment projects in the priority sectors that support long-term sustainable economic growth and increase economic productivity.

"Despite being impacted by the widespread Covid-19 and other external factors, Cambodia's public debt situation continues to remain sustainable and low risk of debt distress," he said in the bulletin.

Phnom Penh Post reported that the Cambodian Economic Ministry maintains that the country’s public debt remains manageable, continuing to be categorised as “sustainable” and “low risk”. It said the assessment holds despite the challenges posed to the economy by the Covid-19 crisis and other external factors.

According to the ministry, maintaining the sustainability of public debt is contingent upon a robust public debt management system, including a comprehensive legal framework, well-defined policies, strategies and operational management procedures, adequate institutional and human resource capacity and advanced IT systems for managing operations and data storage.

It said these elements are crucial for debt risk analysis and ongoing monitoring.

“Sustainable, efficient and effective public debt management has significantly contributed to Cambodia’s remarkable economic growth over the past two decades. It has also enhanced the Kingdom’s ability to mobilise concessional credit for financing in priority areas.

“This is crucial for addressing the Covid-19 crisis and implementing the “Strategic Framework and Programmes for Economic Recovery and to Promote Cambodia’s Economic Growth in Living with Covid-19 in the New Normal for 2021-23”, said the statement. - Agencies