Friday 5th December, 2008
Malaysia Sun
The Asian Development Bank (ADB) is extending a $10.3 million loan to assist Cambodia in developing it's financial sector.
The loan will fund the implementation of a second subprogram under the Financial Sector Program II (FSP II) Cluster that was approved in December 2007. The program cluster comprises four subprograms to be implemented over a four-year period to 2010. A separate $300,000 grant will help implement some of the key triggers of the third subprogram.
The overall goal of the program is to put in place a sound, market-based financial system by maintaining the momentum for reform activities aimed at building confidence and financial intermediation, enhancing resilience and efficiency, and promoting good governance. This is in line with the government’s efforts to sustain economic growth and reduce poverty.
“With the recent global financial crisis, Cambodia needs more than ever to have a sound and efficient financial system that will contribute towards sustaining broad-based economic growth,” said Samiuela Tukuafu, Senior Financial Sector Specialist of ADB’s Southeast Asia Department. “An efficient and sound financial system will help reduce poverty by lowering the cost of doing business, increasing job opportunities, and extending the outreach of services to poor and rural areas.”
The first Financial Sector Program Cluster (2001 – 2007) has yielded encouraging results as Cambodia’s financial sector continues to deepen with more services being introduced. Credit to the private sector has increased to 22.9% of gross domestic product as of June this year compared to 6.5% of GDP in 2000. Total deposits also rose to 25.8% of GDP in June 2008 from 9.2% in 2000. The government is working towards establishing a capital market in the near future.
The program will focus on improving confidence and financial intermediation by upgrading the payments, clearance, and settlement systems; improving public financial disclosures and establishing a credit information bureau; establishing a registry of tradable government securities; and improving the outreach of microfinance institutions.
To maintain stability in the financial sector, the law on banking and financial institutions and related regulations are being updated; the supervision of banks and microfinance institutions is being strengthened; and a new law on commercial contracts is being developed.
The program will also promote good governance by implementing international initiatives on anti-money laundering and counter-financing of terrorism; promote corporate governance and transparency in the insurance sector; establish commercial dispute resolution mechanism; and increase the number of qualified national accountants and auditors. A fully computerized management information system for the National Bank of Cambodia to enhance its efficiency is one of the key activities of the program.
ADB has been supporting the development of Cambodia’s financial sector since 1999.
The loan will fund the implementation of a second subprogram under the Financial Sector Program II (FSP II) Cluster that was approved in December 2007. The program cluster comprises four subprograms to be implemented over a four-year period to 2010. A separate $300,000 grant will help implement some of the key triggers of the third subprogram.
The overall goal of the program is to put in place a sound, market-based financial system by maintaining the momentum for reform activities aimed at building confidence and financial intermediation, enhancing resilience and efficiency, and promoting good governance. This is in line with the government’s efforts to sustain economic growth and reduce poverty.
“With the recent global financial crisis, Cambodia needs more than ever to have a sound and efficient financial system that will contribute towards sustaining broad-based economic growth,” said Samiuela Tukuafu, Senior Financial Sector Specialist of ADB’s Southeast Asia Department. “An efficient and sound financial system will help reduce poverty by lowering the cost of doing business, increasing job opportunities, and extending the outreach of services to poor and rural areas.”
The first Financial Sector Program Cluster (2001 – 2007) has yielded encouraging results as Cambodia’s financial sector continues to deepen with more services being introduced. Credit to the private sector has increased to 22.9% of gross domestic product as of June this year compared to 6.5% of GDP in 2000. Total deposits also rose to 25.8% of GDP in June 2008 from 9.2% in 2000. The government is working towards establishing a capital market in the near future.
The program will focus on improving confidence and financial intermediation by upgrading the payments, clearance, and settlement systems; improving public financial disclosures and establishing a credit information bureau; establishing a registry of tradable government securities; and improving the outreach of microfinance institutions.
To maintain stability in the financial sector, the law on banking and financial institutions and related regulations are being updated; the supervision of banks and microfinance institutions is being strengthened; and a new law on commercial contracts is being developed.
The program will also promote good governance by implementing international initiatives on anti-money laundering and counter-financing of terrorism; promote corporate governance and transparency in the insurance sector; establish commercial dispute resolution mechanism; and increase the number of qualified national accountants and auditors. A fully computerized management information system for the National Bank of Cambodia to enhance its efficiency is one of the key activities of the program.
ADB has been supporting the development of Cambodia’s financial sector since 1999.
7 comments:
i don't see it that way. please be realistic, can cambodia really get rid of the majority of cpp people who, they claim, struggled, survived, endured, etc... in cambodia; c'mon, be realistic, any saying must include all cambodians. yes, cambodia needs a lot of reforms, like we can never have enough of it, again, thanks to the KR sabotage cambodia. anyway, cambodia can start anew or afresh; must work together in the name of unity and cooperation; otherwise, there will be no peace and the hatred will not stop. we should learn and become smarter and clever and better experienced by now. so, please think about it; cambodia is not the same anymore and changes are inevitable, especially if cambodia and its khmer people want to compete with vietnam and thailand and the rest of the world for that matter. i mean, cambodia is never about vietnam and thailand, the two historical enemies of khmer people; however, we want to live side by side with them without any conflict as well. and it goes both ways, to say the least. let's all start afresh with new and many development coming to cambodia. cambodia needs a lot of ideas, new technology, new thinking, new mentality, etc... given we have competition from vietnam, thailand, etc... we have to teach ourselves to think like this, otherwise, we will not get out to the "frog in the pond" mentality. it's good to help all khmer people to become better, i think. we have so much hates and jealousy; it's time to move forward or move on to better things. please, think about it; what benefits us, and what's not? thank you and god bless cambodia.
Thanks for your positive attitude 3:12AM. That's what we need to move the country forwad. I hope more Khmers will join us switching to this positive mentality/thinking. The world we are living in is far from being perfect. We can either be resentful to everything happening around us or focus on positive attitude and start making a little contribution at a time in the area we can help to improve the people living conditions. We can not move the mountain, but we certainly can move one rock at a time. The choice is our...
Khmer New Generation
we for sure can move one rock at a time. But we need to move that into the right direction. Will the CPP able or want to move these little rock to the right direction?
After almost 25 years, the only direction khmer and some of the international community have seen is the direction of curruptions.
Does khmer future can still afford to have the same direction of curruption and vietnam domination?
3:12AM and 3:45AM, i am totally with you, bro. This is the kind of mentality that can help Cambodia to leap forward. But we need to take action not just talking. and the time is NOW.
5:29AM i say, no fuck the vietnam domination! this is just an illusion of mind of you guys who only know how to bark from afar.. I've lived in Cambodia almost my entire life and I don't know wtf that is. also, no fuck the corruption! where in the world doesn't have corruption? there is no perfect world on earth. what I mean is just leave everything aside and working towards moving Cambodia forward. Contribute what you can in any aspect possible. doesn't that sound better? If you can't directly contribute in terms of action, some positive ideas will also help.
7:19 AM, some joker you are! Don't leave the daytime job yet, if you have one... okay?
Ah Khmer srok Khmer don't know shit about Khmer pride. They just want to steal from each other and leech the country to death so that they could take the money overseas to help grow srok Ah Kaing.
LOK Khmer New Zealand
yes, however, please keep in mind that that's not the only thing that cambodia need reform in. yes, corruption plays a major part in it, but it not the only thing that weaken the system. also, what is weaken the system is the lack of trained workers, perhaps, and perhaps, as cambodia is just starting anew again, again thanks to the stupid, backward KR regime. of course, cambodia's going to need a lot of help from the generous world out there... howver, who say we can't learn, though? nobody on this planet is bornt with skill. we all learn from somebody, somehow! not this is not unique to cambodia. i would be surprise 10, 20, or even 30 years from now, cambodia is full of skilled, vibrant workers, and by then, we will be fully integrated into the world's economy, at full speed, perhaps. god bless cambodia.
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