Letter to the Editor
The Cambodia Daily
The government seems to be very courageous in contemplating the issue of government bonds ("New Law Allows Cambodian Gov't to Issue Bonds," Dec 1. p 22). The government is choosing to employ a monetary instrument that, at least in the short run, can only highlight its deficiency in governing the country.
Unless the government gets its administration in order long before the issuance, the bonds can only bring to it further embarrassment in addition to the unflattering international assessments and reports it receives continually.
The credit rating, if the international money market bothered to assess the Cambodian bond at all, would be so low that the premium would be ridiculously high.
If balancing the budget is the main aim, then foreign aid will be a far better option. Aid is easy to obtain, and usually comes as a grant or loan with a negligible interest rate.
On the downside, however, some donor countries may pretend to be upset from time to time and lash out over the government's misuse of their money.
But deep down, they do not really care. They have their own motives and agenda for giving away those millions of dollars. Therefore, the embarrassment associated with foreign grants and loans, if any, is rather minimal compared to what government bonds would bring.
Bun Buno,
Australia
Unless the government gets its administration in order long before the issuance, the bonds can only bring to it further embarrassment in addition to the unflattering international assessments and reports it receives continually.
The credit rating, if the international money market bothered to assess the Cambodian bond at all, would be so low that the premium would be ridiculously high.
If balancing the budget is the main aim, then foreign aid will be a far better option. Aid is easy to obtain, and usually comes as a grant or loan with a negligible interest rate.
On the downside, however, some donor countries may pretend to be upset from time to time and lash out over the government's misuse of their money.
But deep down, they do not really care. They have their own motives and agenda for giving away those millions of dollars. Therefore, the embarrassment associated with foreign grants and loans, if any, is rather minimal compared to what government bonds would bring.
Bun Buno,
Australia
1 comment:
They can be proud that they now can play with the bond market though.
And the gullible will buy the Cambodian bonds.
SiS
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