Cambodia's Public Debt by the End of 2023

According to the latest information available, the Royal Government of Cambodia (RGC) had a total public debt stock of USD 11.24 billion by the end of 2023. This debt stock includes both external and domestic debt. The majority of the public debt, approximately 99.5%, is public external debt, amounting to USD 11.19 billion. The remaining 0.5% is public domestic debt, totaling USD 52.39 million.

The composition of the public debt stock is as follows: USD 46%, SDR 19%, CNY 11%, JPY 11%, EUR 7%, and local and other currencies 6%.

Cambodia’s Loan Signed

In Q4 2023, the Royal Government of Cambodia (RGC) signed new concessional loans with Development Partners (DPs) in the amount of USD 779.62 million, equivalent to SDR 578.15 million. Throughout 2023, the government signed new concessional loans with DPs totaling USD 1.81 billion, equivalent to SDR 1,339.22 million. These loans accounted for 79% of the ceiling permitted by law. Of the total loans signed in 2023, 57% were signed with Bilateral DPs and 43% with Multilateral DPs. It is worth noting that the loan signed in 2023 decreased by approximately 16% compared to the same period the previous year. The purpose of these loans is to finance public investment projects in priority sectors that support long-term sustainable economic growth and increase economic productivity/production.

Cambodia’s Debt Service Payment

In terms of debt service payment, in Q4 2023, the Royal Government of Cambodia (RGC) paid USD 82.14 million. Throughout 2023, the RGC paid a total of USD 519.70 million in debt service. Of this amount, USD 495.26 million was for public external debt, including principal and interest/fees, and USD 24.44 million was for public domestic debt, including principal and interest. The debt service payments in 2023 increased by approximately 12% compared to the same period the previous year.

Cambodia’s Debt Indicators

Despite the global economic challenges, Cambodia’s public debt indicators in 2023 remained well below the established thresholds. The Cambodian government has established five fundamental principles for public debt management. These principles serve as a guiding framework to ensure responsible borrowing and prudent utilization of borrowed funds. The Present Value of Public and Publicly Guaranteed External Debt to GDP stood at 24.2%, significantly lower than the 40% threshold. These indicators highlight the sustainability and low-risk nature of Cambodia’s public debt, despite the adverse effects of the COVID-19 pandemic and other external factors.

As the Cambodian government continues to navigate the complex economic landscape, the prudent management of public debt will remain a priority. With a focus on financing public investment projects in priority sectors, Cambodia aims to foster long-term sustainable economic growth and enhance productivity. By ensuring the sustainability of its public debt, Cambodia is well-positioned to weather economic challenges and maintain its growth trajectory.

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