The Cambodian government has finalized a $250 million loan agreement with the Asian Development Bank (ADB) to bolster the nation's economic stability. The deal was signed in Phnom Penh by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth and ADB Country Director for Cambodia Yasmin Siddiqi, with the participation of ADB Director General for Southeast Asia Nianshan Zhang.
The funding is designated for the Rapid Intervention for Stabilisation of the Economy (RISE) programme. The initiative aims to support fiscal measures, ensure the continuity of social spending within the 2026 national budget, and encourage the adoption of clean energy solutions. A significant portion of the aid is earmarked for the IDPoor programme, which provides income support to over one million low-income households, including at least 350,000 families led by women. This assistance package also includes provisions for rural agricultural inputs and debt relief.
The loan serves as a buffer against the economic fallout of the Middle East conflict. Because Cambodia relies entirely on imports for its oil and gas needs, global price fluctuations significantly affect its domestic transport, industry, agriculture, and service sectors. Nianshan Zhang noted that these global pressures often result in increased living costs, unemployment, and rising debt for vulnerable populations. The ADB stated that this financial support is intended to help the government maintain economic momentum while protecting its most at-risk citizens from inflationary shocks.
Source: Khmer Times
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