- Posted on: December 2, 2019
Two agreements worth more than €67 million, about $70 million, were reached by Minister of Economy and Finance Aun Pornmoniroth and German ambassador Christian Berger on 28 November. These are the first loans the Federal Republic provides to the Kingdom. According to a press statement, the loans are directed towards improving the government’s four priority sectors – human resources, road infrastructure, energy and water.
Through the first agreement, German development bank (and ADW member) Kreditanstalt fur Wiederaufbau (KfW) allocates more than $33 million in reduced-interest loans and $2.2 million in grant aid to finance the broadening of Cambodia’s rural energy infrastructure. The second agreement will see the Kingdom receive more than $33 million in reduced interest loans and more than $5.6 million in grant aid to benefit the Kingdom’s rural road network.
Germany is Cambodia’s second-largest European development partner with various cooperation approaches since the early 1980s.