ADB, Japan, Luxembourg to help Cambodia improve financial sector

via CAAI News Media

February 5, 2010

PHNOM PENH, Feb. 5 — The Asian Development Bank (ADB), with funding support from the governments of Japan and Luxembourg, will help Cambodia improve its financial sector through a US$-1.25 million technical assistance project.

In its press release on Friday, ADB said that three main government ministries and institutions Ministry of Economy and Finance, Ministry of Commerce, and the National Bank of Cambodia will work together to develop a market-oriented financial system to enhance resources mobilization and support sustainable economic growth.

The government will work on 13 key areas, including strengthening bank supervision and surveillance, improving legal and regulatory framework, assisting the newly established national arbitration council, and the passage of the commercial contract law.

The assistance will also help upgrade the national payment system and establish a credit information bureau within the National Bank of Cambodia.

"This technical assistance represents ADB's continuous commitment to help Cambodia implement further reforms in the financial sector to create a sound and reliable system that will create confidence among investors and further attract foreign direct investments," said Putu Kamayana, ADB's Country Director for Cambodia.

The undertaking is estimated to cost US$ 1.4 million, of which US$ 750,000 will be financed on a grant basis by the Japan Special Fund, funded by the government of Japan and administered by ADB.

Another US$ 500,000 will be financed on a grant basis by the government of Luxembourg and administered by ADB.

The Royal Government of Cambodia will contribute US$ 150,000 through office space and staff support toward the project.

"ADB greatly values the collaboration and contributions from the governments of Japan and Luxembourg in supporting these important reforms" added Kamayana.