Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline|
|01B - Support policies for short-term lending info_outline||
No amount/estimate: April 2020, The National Bank of Cambodia (NBC) announced that there will be a lowering of required reserves that banking and financial institutions must maintain at the NBC both for local (riel) and foreign currencies.
|01C - Forex operations info_outline||
No amount/estimate: April 2020, Cambodia continues to maintain a managed floating exchange rate.
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate adjustments||
No amount/estimate: April 2020, The NBC (i) reduced the interest rate in its Liquidity Providing Collateralized Operations (LPCOs) that decreases banks’ funding costs in domestic currency, (ii) cutting the interest rate on negotiable certificates of deposit (the collateral for LPCOs) to encourage banks to disburse loans.
|02B2 - Other policies to support long-term lending||
No amount/estimate: April 2020, The NBC announced the delay in additional increases in the capital conservation buffer until 2021.
|02C - Loan guarantees||
26 May 2020, The Ministry of Economy and Finance will establish a “credit guarantee fund” of USD200 million. This fund may guarantee loans through banks and financial institutions using the market policy to assuage the pressure of cash flow and working capital of businesses in all sectors.
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline||
26 May 2020: (i) Adjust the special financing plan of USD50 million through the Agricultural and Rural Development Bank (ARDB) and extend the provision of loans from this plan to the small and medium enterprises (SMEs) cluster; (ii) Adjust a special financing plan of USD100 million between SMEs and financial institutions to extend the coverage of loans to the enterprises in the medical equipment and medicine production sectors (See Measure 10: No breakdown).
|03B - Forbearance||
No amount/estimate: April 2020, The National Bank of Cambodia (NBC) has also issued guidelines to financial institutions on loan restructuring for borrowers experiencing financial difficulties (but still performing) in priority sectors (tourism, garments, construction, transportation and logistics).
|04 - Equity support info_outline|
|05 - Health and income support||KHR851,712,272,727||USD210,000,000|
|05A - Health support||KHR243,346,363,636||USD60,000,000||
(i) April 2020, Additional fiscal resources to the health sector of around USD60 million are expected; (ii) No amount/estimate: 24 March 2021, The government established a subcommittee on vaccination against COVID-19; (ii) No amount/estimate: 23 July 2021, The government received 1 million doses of Sinopharm vaccines bought from the People's Republic of China (PRC).
|05B - Income support||KHR608,365,909,091||USD150,000,000|
|05B1 - Tax and contribution deferrals and policy changes||
No amount/estimate: (i) February 2020, Deferral of comprehensive tax audits for the entire 2020 for hotels and guesthouse businesses in Siem Reap Province; (ii) 23 December 2020, The government announced the deferral of compulsory payment of Social Security Fund in occupational risk and healthcare sector during the period of business suspension. On 25 March 2021, the government announced that it will continue to delay the payments for the social security fund, occupational risk, and healthcare of the National Social Security Fund during the period of business suspension; (iii) 23 December 2020, The government announced to delay the payment of owed amount of the civil aviation fees until March 2021 while permitting those airlines companies to pay the owed amount in installments after the delayed period. On 25 March 2021, the government announced that this measure will be extended from April to June 2021.
|05B2 - Tax and contribution rates reduction||
No amount/estimate: (i) February 2020, Temporary tax break for registered enterprises in the tourism and garment/footwear and bag manufacturing sectors. April 2020, Support to tourism sector, i.e. exemption from all monthly taxes for two months (June to July 2020) for hotels, guesthouses, restaurants and travel agencies registered with the General Department of Taxation, and whose business activities are operated in Phnom Penh, Siem Reap, Preah Sihanouk, Kep, Kampot, Bavet city, and Poipet city. 31 July 2020, Continued support to the aforementioned businesses through tax exemption. 1 October 2020, the measure is extended until December 2020. On 23 December 2020, the government announced that it will continue to exempt all monthly taxes for the aforementioned businesses until March 2021. On 25 March 2021, the government announced that it will continue to exempt monthly taxes of all kinds for these businesses from April to June 2021. These businesses are still obligated to submit a tax declaration letter and use the E-VAT system during this exemption period; (ii) Waiving of CIT for 4 months from February to May 2020 for hotels and guesthouse businesses operating in Siem Reap Province (tourist town); (iii) Waiving of transfer tax for any purchases below USD70,000 from licenced property developers effective for one year (February 2020 to January 2021). On 23 December 2020, the government announced the continued exemption of stamp tax for houses valued at or less than USD70,000 until December 2021; (iv) April 2020, Exemption of all airlines registered in Cambodia from minimum tax for two more months from June to July 2020. 31 July 2020, Measure is extended until September 2020. 1 October 2020, The government announced to extend the measure until December 2020. On 23 December 2020, the government announced the continued exemption of minimum tax for the airline companies registered in Cambodia until March 2021. On 25 March 2021, the government announced that it will continue to exempt minimum tax for three more months starting from April to June 2021 for the airline companies registered in Cambodia; (v) 30 December 2020, Exemption on patent tax and signage tax for travel agencies and operators in other tourism-related industries. The taxpayers are still obligated to do patent renewal (See Measure 10: No breakdown); (vi) No amount/estimate: 26 May 2020, Loosen the application of withholding tax for local and overseas lenders by about 5% to 10%. On 23 December 2020, the government announced the reduction of withholding tax rate to 5% in 2021 (10% in 2022) on interest payments for the new borrowings (10% in 2021 for existing borrowings) by banks and MFIs from both resident or non-resident lenders.
|05B3 - Subsidies to individuals and households||KHR202,788,636,364||USD50,000,000||
No amount/estimate: 24 June 2020, The Royal Government introduced the "Cash Transfer Program for Poor and Vulnerable Households during COVID-19" with support from international donors. The monthly spending for this assistance program is approximately KHR100 billion (or about USD25 million) and will run for two months in the first round (June and July). 31 July 2020, Implement Cash Assistance Programmes for the poor and vulnerable families amid COVID-19 pandemic until September 2020. 1 October 2020, Continue to roll out the cash relief program for poor and vulnerable families during the impact of the COVID-19 pandemic for three more months from October to December 2020. On 23 December 2020, the government announced that it will continue to roll out the program until March 2021. On 25 March 2021, the measure was announced to be extended from April to June 2021.
|05B4 - Subsidies to businesses||
23 December 2020. The Government of Cambodia will continue to provide financial support (USD40 per month for each worker) in the garment/textile, footwear, travel accessory, bag and tourism industries (e.g., hotels, guesthouses, restaurants, and travel agents) until March 2021. On 25 March 2021, the government announced an extension of the financial support from April to June 2021 .
|05B5 - Indirect income support||KHR405,577,272,727||USD100,000,000||
26 May 2020, Extend the coverage and amount of the budget for the “cash for work program” in 2020 to USD100 million to absorb the labor force who have lost employment from the factories/enterprises and returned home from the foreign countries, to support the local people’s living standards, and to bring about socioeconomic achievements through the construction of small local physical infrastructures to enhance the agricultural and economic sectors.
|05B6 - No breakdown (income support)|
|05C - No breakdown (health and income support)|
|06 - Budget reallocation info_outline||
No amount/estimate: April 2020, (i) Government spending is to be redirected to (a) combatting the virus; (b) social protection, especially of the poor and unemployed; (c) supporting businesses and jobs; and (d) maintaining security; (ii) Savings on current spending of about USD30 million are also planned; and (iii) Capital spending is to be streamlined by around USD370 million (See Measure 10: No breakdown).
|07 - Central bank financing government|
|07A - Direct lending and reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||KHR2,294,837,324,544||USD565,820,000|
|08A - Swaps info_outline|
|08B - International loans/grants||KHR2,294,837,324,544||USD565,820,000|
|08B1 - Asian Development Bank||KHR1,026,799,981,363||USD253,170,000||
(i) 7 February 2020, Greater Mekong Subregion Health Security Project (USD0.27 million); (ii) 7 February 2020, Strengthening Regional Health Cooperation in the Greater Mekong Subregion-Additional Financing (USD0.34 million); (iii) 24 April 2020, Policy Advice for COVID-19 Economic Recovery in Southeast Asia (USD0.15 million); (iv) April 2020, TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD1.96 million); (v) 10 July 2020, COVID-19 Active Response and Expenditure Support Program (USD250 million); (vi) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (vii) 10 August 2020, Sustaining the Gains of the Regional Cooperation in the Greater Mekong Subregion (Additional Financing) (USD0.05 million); (viii) 9 September 2020, Strengthening the Enabling Environment for Disaster Risk Financing (Phase 2) (USD0.13 million); (ix) 22 September 2021, Fostering Regional Cooperation and Integration through Knowledge and Capacity Building of Trade and Supply Chain Finance Program Banks (USD 0.06 million) [update].
|08B2 - Other||KHR1,268,037,343,181||USD312,650,000||
(i) April 2020, World Bank: (a) USD20 million credit for the Cambodia COVID-19 Emergency Response Project, as part of the first tranche of emergency support operations through a dedicated fast-track COVID-19 facility (loan); (b) USD14 million of the H-EQIP project funds was allocated through a Contingency Emergency Response Component (CERC) to purchase ambulances and medical equipment and to quickly develop national laboratory capacity to rapidly respond to the COVID-19 pandemic (loan); (ii) May 2020, USAID provided more than USD11 million in total assistance for the response to COVID-19, which includes (a) USD5 million in ESF for relief and job-skills training for vulnerable people, such as returning migrants, and expanded efforts to counter trafficking and protect children; and (b) more than USD6 million in health assistance to help the Cambodian Government prepare laboratory systems, activate case-finding and event-based surveillance, communicate risk, support technical experts for response and preparedness, and more (grant); (iii) 29 May 2020, The World Bank approved a USD15 million credit from the International Development Association (IDA) for the Cambodia Strengthening Pre-Service Education System for Health Professionals Project to strengthen Cambodia’s pre-service education system for health professionals to improve the quality of care for better health outcomes ; (iv) 5 June 2020, The Government of Japan will provide a grant aid totaling JPY4.5 billion (approximately USD41.4 million) to implement three development projects in Cambodia, of which (a) JPY348 million (USD3.2 million) will be used for Human Resource Development Scholarship; (b) JPY2.15 billion (USD19.8 million) for the Improvement of Referral Hospitals in Siem Reap province; and (c) JPY2 billion (USD18.4 million) for the Economic and Social Development Programme through providing medical supplies to protect against and respond to the spread of COVID-19 in Cambodia; (v) June 2020, UN COVID-19 Response and Recovery Fund, a UN inter-agency fund mechanism established by the UN Secretary-General to help support low and middle-income program countries to respond to the pandemic and its impacts including an unprecedented socioeconomic shock, has allocated USD1 million to Cambodia (grant); (vi) 11 June 2020, Team Europe (EU and its Member States, including Switzerland).announced that it has mobilized EUR443 million (roughly USD483 million and KHR1,990 billion) in grants and loans to support Cambodia’s efforts in dealing with the economic and social fallout of the Coronavirus Disease 2019 (COVID-19) pandemic. This EUR443 million support combining new allocations, funds already programmed and redirected funds, is channelled through the Royal Government institutions and partner organisations, including civil society organisations; (vii) 12 June 2020, The Government of Japan extends an emergency assistance of USD6.3 million comprising of medical supplies and technical assistance to the RGC through the United Nations Office for Project Services (UNOPS); (viii) September 2020, Additional Financing to Cambodia COVID-19 Emergency Response Project USD1.15 million; (ix) 20 April 2021, the government of Viet Nam provided humanitarian assistance of USD300,000 to the government of Cambodia to combat COVID-19; (x) 7 May 2021, the Australian Government signed an agreement with the United Nations Development Programme (UNDP) to contribute an additional AUD4 million (about USD2.5 million) to mitigate the impacts of COVID-19 on Cambodia’s economy and people, starting immediately. The additional AUD4 million will fund further work to strengthen social assistance, support local businesses to adapt to pandemic-related difficulties, and other priorities identified through consultation with the Royal Government of Cambodia and civil society; (xi) 24 June 2021, The World Bank approved a new USD200 million International Development Association (IDA) credit for the Cambodia Relief, Recovery and Resilience Development Policy Financing Project (DPF) to support COVID relief and build resilience against future economic shocks.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||KHR8,111,545,454,540||USD2,000,000,000||
(i) April 2020, The government has put together a USD2 billion stimulus package for eventual loss of jobs of the factory workers. This measure is an attempt to revive the economy (See Measures 1, 5, and 6); (ii) 26 May 2020, The Ministry of Economy and Finance will prepare additional financing of USD300 million to support and act as a catalyst for promoting growth in key sectors during and after the crisis.
|11 - Other Economic Measures||
(i) April 2020, The government has ordered the suspension of white rice exports, to secure domestic supplies; (ii) 20 May 2020, suspension of white rice exports has been lifted.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) April 2020, The government has announced foreigners wishing to travel to Cambodia the need to obtain a visa at a Cambodian diplomatic mission abroad, a health certificate before departure, and sufficient travel insurance; (ii) 20 May 2020, The authorities have lifted the entry ban on citizens from Iran, Italy, Germany, Spain, France, and the US; (iii) 11 August 2020, The Inter-Ministerial Commission for Combating COVID-19 issued a press release on the temporary suspension of flights from the Philippines from August 13, 2020 onward; (iv) 11 November 2020, The Ministry of Health issued the updated guidance on travel and the implementation of health measures and quarantine requiring passengers to quarantine at government approved facilities, effective 18 November 2020.
|12B - Measures affecting business and workplace||
(i) June 2020, The Royal Government introduced Phase 1 of the IT business registration platform in early June 2020 to facilitate and promote business registration, especially to make it easy for those companies wishing to be registered to obtain loans from the Royal Government’s special financing program; (ii) 8 July 2020, Phnom Penh Capital Administration Notification on Reopening of Clubs and KTVs in Phnom Penh by Transforming into Restaurants.
|12C - Others||
April 2020: (i) Quarantine and self-isolation measures were put in place; (ii) Schools and casinos are closed and the government has banned public events with more than 50 participants; (ii) The Khmer New Year break has been cancelled; (iii) November 19, The Government announced that schools, museums and cinemas will reopen on 23 November 2020 and that events involving gatherings such as weddings, religious ceremonies or festivals will be allowed to take place; (iv) 15 April 2021, The Royal Government of Cambodia temporarily suspended the areas of Phnom Penh and Ta Khmao city of Kandal province for 14 days, starting from 12am of 15 April 2021 to 28 April 2021, with the goal to manage the spread of COVID-19 in Phnom Penh and Ta Khmao city of Kandal province and prevent this virus from spreading to other areas. On 28 April 2021, Cambodian authorities announced that lockdown measures in Phnom Penh and Ta Khmau municipalities will be extended until 5 May 2021.