World Bank approves 200 million USD credit to Cambodia

Hanoi (VNA) - The World Bank (WB) has approved a credit worth 200 million USD to Cambodia to help the country combat the ongoing COVID-19 pandemic and begin its journey toward economic recovery.

In a press statement issued on June 25, the WB said that the credit will help Cambodia deal with the COVID-19 crisis by providing timely and targeted relief to affected people, facilitating robust recovery through structural reforms, and building resilience against future economic shocks.

Cambodia is facing an unprecedented economic and social crisis. In 2020 its economy contracted for the first time in 30 years, by 3.1 percent, and is now in the midst of its worst COVID-19 outbreak since the pandemic began, the bank said.

The hardest-hit sectors by the crisis, including garments, tourism, and construction, also account for much of the employment in the country, the statement said.

It added that in the absence of significant mitigation measures, the pandemic could result in sharp rises in unemployment and poverty, with the number of people falling into poverty expected to swell by nearly 1 million.

WB country manager for Cambodia Inguna Dobraja said that there is a clear need in Cambodia to provide quick-disbursing resources in support of a comprehensive, government-led programme that will protect the poorest from the impacts of the crisis and assist with the country's economic and social recovery./.