Roundup: Cambodian PM reports economic, financial achievements at ADB seminar
Cambodia will establish a limited stock market in 2009, Prime Minister Hun Sen said Thursday when reporting the kingdom's economic and financial achievements to a symposium on the partnership between the government and the Asian Development Bank (ADB).
"In the capital market sector, laws relating to the government bond have been recently prepared and approved by the legislative institutions. At the same time, the government is finalizing the drafted law on the publication and transaction of corporation bonds with the objective of introducing the capital market in Cambodia by 2009," he said.
In the financial sector, Cambodia has many important achievements, the premier said, citing the law reinforcement and commercial banks supervision through licensing renewal, strengthening the ability of the central bank to monitor and control commercial banks and other financial institutions, and making laws and regulations to increase public confidence in the banking sector.
"In our effort to reduce poverty, the government has considered the adequate delivery of micro-finance services as an important means for supporting rural development. The government has been actively putting its effort in placing all the micro-finance institutions under the scope of the law aiming at effectively promoting the development of micro-finance sector to have a broader coverage," he added.
In addition, said Hun Sen, the government has implemented its cautious monetary policy in which the main goal is to join the process of creating a very stable and favorable macro-economic condition for economic growth and transactions, especially by ensuring a stable exchange rate and limiting inflation rate with the use of monetary instruments.
"The government's money supply policy has been prepared to address the necessary market demand but not to fund the government 's budget deficit," he added.
With respect to the insurance sector, he said, the government has prepared and implemented some standard regulatory frameworks to strengthen the supervision of insurance companies through licensing renewals, the implementation of permanent controlling procedures, and the application of accounting principles.
"Banking and financial system must play an important role in mobilizing resources and distributing those resources to the users as much as possible in order to act as an important linkage with economic growth. For instance, the reform in this sector has contributed successfully to the growth of the Cambodian economy which is reflected by a highly sustainable economic growth and remarkable poverty reduction in the last decade," he said.
According to the premier's report, between 1994 and 2006, the average annual economic growth rate of Cambodia was 9.8 percent higher than other developing countries. In 2005, the growth rate jumped to 13.4 percent. In 2006, the growth rate was 10.4 percent.
Meanwhile, income per capita doubled from 249 U.S. dollars in 1994 to 500 U.S. dollars in 2005. Inflation rate has been kept low. Foreign currencies exchange rate have been generally stable. The Cambodian foreign currency reserves increased markedly from 100 million U.S. dollars in 1994 to one billion U.S. dollars in 2006.
In April, Cambodia was assigned its first-ever sovereign debt rating by the credit rating agency Standard and Poor's, which said the country's outlook was stable.
The B+ rating is below investment grade status, restricting many institutional investors, but it is the first step in Cambodia 's bid for economic respectability.
Source: Xinhua
Cambodia will establish a limited stock market in 2009, Prime Minister Hun Sen said Thursday when reporting the kingdom's economic and financial achievements to a symposium on the partnership between the government and the Asian Development Bank (ADB).
"In the capital market sector, laws relating to the government bond have been recently prepared and approved by the legislative institutions. At the same time, the government is finalizing the drafted law on the publication and transaction of corporation bonds with the objective of introducing the capital market in Cambodia by 2009," he said.
In the financial sector, Cambodia has many important achievements, the premier said, citing the law reinforcement and commercial banks supervision through licensing renewal, strengthening the ability of the central bank to monitor and control commercial banks and other financial institutions, and making laws and regulations to increase public confidence in the banking sector.
"In our effort to reduce poverty, the government has considered the adequate delivery of micro-finance services as an important means for supporting rural development. The government has been actively putting its effort in placing all the micro-finance institutions under the scope of the law aiming at effectively promoting the development of micro-finance sector to have a broader coverage," he added.
In addition, said Hun Sen, the government has implemented its cautious monetary policy in which the main goal is to join the process of creating a very stable and favorable macro-economic condition for economic growth and transactions, especially by ensuring a stable exchange rate and limiting inflation rate with the use of monetary instruments.
"The government's money supply policy has been prepared to address the necessary market demand but not to fund the government 's budget deficit," he added.
With respect to the insurance sector, he said, the government has prepared and implemented some standard regulatory frameworks to strengthen the supervision of insurance companies through licensing renewals, the implementation of permanent controlling procedures, and the application of accounting principles.
"Banking and financial system must play an important role in mobilizing resources and distributing those resources to the users as much as possible in order to act as an important linkage with economic growth. For instance, the reform in this sector has contributed successfully to the growth of the Cambodian economy which is reflected by a highly sustainable economic growth and remarkable poverty reduction in the last decade," he said.
According to the premier's report, between 1994 and 2006, the average annual economic growth rate of Cambodia was 9.8 percent higher than other developing countries. In 2005, the growth rate jumped to 13.4 percent. In 2006, the growth rate was 10.4 percent.
Meanwhile, income per capita doubled from 249 U.S. dollars in 1994 to 500 U.S. dollars in 2005. Inflation rate has been kept low. Foreign currencies exchange rate have been generally stable. The Cambodian foreign currency reserves increased markedly from 100 million U.S. dollars in 1994 to one billion U.S. dollars in 2006.
In April, Cambodia was assigned its first-ever sovereign debt rating by the credit rating agency Standard and Poor's, which said the country's outlook was stable.
The B+ rating is below investment grade status, restricting many institutional investors, but it is the first step in Cambodia 's bid for economic respectability.
Source: Xinhua
1 comment:
"Meanwhile, income per capita doubled from 249 U.S. dollars in 1994 to 500 U.S. dollars in 2005."
In 2007 teachers are still making $25 per month????? It is a lie.
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