PHNOM PENH: Cambodia’s public debt remains sustainable and under control with a low risk of debt distress even though the country’s economy has been impacted due to the COVID-19 crisis and other external factors.

As of the end of 2022, including the old debt, the Cambodian government has a total public debt of US$9.99 billion, of which US$9.97 billion is public external debt from bilateral developing partners and multilateral developing partners and US$17,51 million others were domestic debt, according to the Cambodia Public Debt Statistical Bulletin released yesterday.

All the loans are highly concessional with an average grant element, it said. The purpose of the loans is to finance public investment projects in the priority sectors that support long-term sustainable economic growth and increase productivity.

“Despite being impacted by the widespread of COVID-19 and other external factors, Cambodia’s public debt situation continues to remain ‘sustainable’ and ‘low risk’ of debt distress,” read the bulletin.

“All the key debt indicators in 2022 are well below the thresholds, of which the main debt indicator, the Present Value of Public and Publicly Guaranteed External Debt to GDP, is at 24.9 percent compared to the 40 percent threshold,” it added.

In 2022, the government has paid debt services to development partners to the tune of US$464 million, pointed out the bulletin.