Phnom Penh (VNA) - The Asian Development Bank (ADB)predicts Cambodia will suffer 390,000 job losses this year due to the COVID-19pandemic.
On July 8, the ADB approved a 250 millionUSD loan to further help the Cambodian government respond to the pandemic.
ADBcountry director in Cambodia Sunniya Durrani-Jamal said on July 15 that the concessionalloan will have a 24-year term, including a grace period of eight years.
Theloan will have an interest rate of one percent per annum during the graceperiod, and 1.5 percent thereafter.
Besidesthe loan, the ADB will provide grants to Cambodia as well as technicalassistance for its cash transfer programme.
Followingthe loan’s approval, Cambodia will be eligible for support under the 5 million USDPolicy Advice for Covid-19 Economic Recovery technical assistance programme,Durrani-Jamal said.
TheADB’s financial support, she said, will be targeted at businesses, householdsand individuals that have been adversely affected by the crisis, with a specialemphasis on poor and vulnerable groups.
Ministry of Economyand Finance spokesman Meas Sok Sensan said the loan details will be releasedduring the contract signing, which does not yet have a date.
People’sCentre for Development and Peace President Yong Kim Eng said the loan will helpCambodia’s economic recovery and take poor families out of poverty if it isspent wisely.
Theloan must be spent transparently and effectively. It must be clearly audited byother agencies or by all relevant stakeholders, he said./.
VNA