Tuesday, 30 December 2008

Cambodian official: 70% of Soviet-era debt to be forgiven

www.chinaview.cn
2008-12-30

PHNOM PENH, Dec. 30 (Xinhua) -- A Cambodian lawmaker insisted that most of the 1.5 billion U.S. dollars of debt that Cambodia borrowed from Russia will be scratched, although the lender had denied it, national media said on Tuesday.

This cancellation will potentially reduce almost two-thirds of the debt that the kingdom owed to foreign nations, said English-language daily newspaper the Phnom Penh Post.

Cheam Yeap, chairman of the Committee of Finance, Banking and Audits of the National Assembly, on Monday assured other lawmakers that Russia will cut 70 percent of Cambodia's debt.

If not, Cambodia will still be in good shape financially, he said.

"If Russia doesn't eliminate our debt, Cambodia will continue to repay it and will still be able to ask for additional loans from other countries," he added.

According to the Ministry of Economy and Finance, Cambodia now owes 2.37 billion U.S. dollars to foreign countries, which is equivalent to 23 percent of the country's Gross Domestic Product.

Around 63 percent of the debt is owed to Russia due to loans in the 1980s when the former Soviet Union was a major benefactor to Cambodia.

Editor: Yang Lina

No comments: