PHNOM PENH, July 31 (Xinhua) -- Cambodia secured a loan of 250 million U.S. dollars from the Asian Development Bank (ADB) on Friday to shield its economy from the impacts of the Middle East conflict.
The loan agreement was signed in Phnom Penh by Cambodian Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth and ADB Country Director for Cambodia Yasmin Siddiqi, with the participation of Nianshan Zhang, ADB director general for Southeast Asia.
The loan for Cambodia's Rapid Intervention for Stabilization of the Economy (RISE) program will fund temporary, targeted fiscal measures and protect planned social spending in the 2026 national budget, said an ADB news release, adding that it will also promote clean energy technologies.
"More than 1 million poor households registered under the government's IDPoor program will receive income support, including at least 350,000 households headed by women," the news release said. "Assistance will also include debt relief and support for agricultural inputs in rural areas."
Speaking at the event, Nianshan Zhang said the loan would support the Cambodian government's efforts to manage the impacts of the conflict in the Middle East by protecting vulnerable households from rising prices, sustaining economic activity, and strengthening resilience to future shocks.
Cambodia's open economy is exposed to global fuel and food price volatility, he said, adding that as the country imports all its oil and gas, higher global prices quickly affect the agriculture, industry, services, and transport sectors that sustain growth and livelihoods.
"For poor and vulnerable households, these pressures translate into higher living costs, lower incomes, rising debt, and unemployment," Zhang said. ■