Cambodia government spends over $2.3 billion to ease economic burdens during the Covid-19 crisis

The government, during the Covid-19 crisis, had spent more than $2.3 billion over two years to ease economic burdens. Although the move was a dip into the National Budget, it is still going ahead to implement a policy to restore and promote a pathway to economic recovery growth while living with Covid-19. Ministry of Finance Secretary of State Phan Phalla, at a press conference yesterday at the Office of the Council of Ministers said that Cambodia is seizing the opportunity to open new ways of development while living with Covid-19 and plans to reopen step-by-step to promote economic growth in all sectors and improve the living standards of the people. He added that the four sectors which have been prioritised for rehabilitation were agriculture, tourism, garments and textiles, and manufacturing. “This is a strategic framework and programmes to restore and stimulate Cambodia’s Economic growth while living with Covid-19,” he said, adding that even after the reopening of the country, announced in November, the Kingdom has continued to implement existing measures and intervention programmes, and will now focus on addressing structural challenges. He added that in order to help some of the sectors affected by Covid-19, the government has continued to use its existing policy tools, including strengthening the implementation of its revenue collection strategy as well as continuing to invest in improving management efficiency. “By introducing new policy instruments for potential financing in the market, we expect to meet demands. This will lead to the development of new financial instruments that aid the expansion of agricultural productivity. This policy is aligned with the new turning point of the development of Cambodia’s financial sector,” said Phalla. He added that to encourage financing mechanisms in the private sector, and for the country’s economic recovery, the government plans to prepare about $ 250 million by 2022 for direct loans from the Cambodian Small and Medium Enterprise Bank and the Interest-bearing Rural Development and Agriculture Bank, with targeted low-interest rates for some priority sectors. This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources. Khmer Daily