PM Optimistic of the Country’s Economy

I 01Despites global economic and financial crisis, Cambodia’s international reserves have seen a remarkable increase.

 Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen told over 600 Cambodian bankers, foreign investors, local bank managers and government officials at the ceremony marking the 30th anniversary of the re-establishment of the National Bank of Cambodia (NBC) held here on Oct. 8 at the Chakdomuk Conference Hall.I02

 “Up to late August 2009, the international reserves in the central bank have reached US$2,522 million or an increase by 21.48 percent as compared with 2008 in total,” Samdech Techo Hun Sen pointed out.

“The royal government of the 4th legislature was born at the time of global financial crisis, which really affected Cambodia’s economic growth, especially the garment export, tourism, investment and construction,” he said.

 However, he added, the Cambodian banking system has not been seriously affected by the crisis because it has not had large operation with the international financial market yet. Anyway, the royal government has taken necessary measures in order to ensure sustainable macroeconomic stability.

As a result, the inflationary pressure saw a decrease from over 30 percent in the first semester of 2008 to 13.5 percent in the second semester of the same year. The inflation rate was estimated to continue to drop to a single digit in 2009, Samdech Techo Hun Sen said.

“As the inflation rate is under control, each banking institution can manage its own risks, we have also reduced capital reserve requirements from 16 percent to 12 percent and canceled the credit ceiling of 15 percent for the real estate sector,” he stressed.

The Cambodian premier further praised the country’s banking system, which, he said, has developed both in scales and transactions.

NBC has been playing an important role in strengthening the banking and financial system in the country and contributing to reducing poverty and increasing people’s living standards, he underlined

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