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, (i) 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; (ii) The Central Bank 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).
|01C - Forex operations info_outline||
No amount/estimate: April, 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||
No amount/estimate: April, The NBC has implemented measures, such as (i) delaying additional increases in the capital conservation buffer, (ii) cutting the interest rate in its Liquidity Providing Collateralized Operations (LPCOs) that decreases banks’ funding costs in domestic currency, (iii) cutting the interest rate on negotiable certificates of deposit (the collateral for LPCOs) to encourage banks to disburse loans.
|02C - Loan guarantees||
May 26, 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||
(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|
|04 - Equity support info_outline|
|05 - Government support to income/revenue||KHR851,712,272,727||USD210,000,000|
|05A - Health||KHR243,346,363,636||USD60,000,000||
April, Additional fiscal resources to the health sector of around USD60 million are expected.
|05B - Non-health||KHR608,365,909,091||USD150,000,000||
(i) No amount/estimate: April, Support to tourism sector including (a) 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; (b) non-payment of the National Social Security Fund (NSSF) during the business suspension; (c) exemption from the renewal fees for tourism licenses of all types for 2021 (See Measure 10: No breakdown); (ii) No amount/estimate: April, Exemption of all airlines registered in Cambodia from minimum tax for two more months from June to July 2020 (See Measure 10: No breakdown); (iii) No amount/estimate: May 26, Loosen the application of withholding tax for local and overseas lenders by about 5% to 10%; (iv) May 26, 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 ; (v) No amount/estimate: June 24, 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); (vi) No amount/estimate: July 31, The Royal Government announced its fifth round of stimulus measures including (a) continued support through subsidies and tax exemptions to the garment-textile, footwear, travel products, bags, and tourism sectors until September 2020; (b) renewal of exemption of the minimum tax until September 2020 to support the aviation sector; and (c) continue to implement Cash Assistance Programmes for the poor and vulnerable families amid COVID-19 pandemic until September 2020.
|06 - Budget reallocation info_outline||
No amount/estimate: April, (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 & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||KHR3,427,533,531,816||USD845,100,000|
|08A - Swaps info_outline|
|08B - International loans/grants||KHR3,427,533,531,816||USD845,100,000|
|08B1 - Asian Development Bank||KHR1,027,732,809,090||USD253,400,000||
(i) February 7, Greater Mekong Subregion Health Security Project (USD0.27 million); (ii) February 7, Strengthening Regional Health Cooperation in the Greater Mekong Subregion-Additional Financing (USD0.34 million); (iii) April 24, Policy Advice for COVID-19 Economic Recovery in Southeast Asia (USD0.75 million); (iv) April, TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD1.78 million); (v) July 10, COVID-19 Active Response and Expenditure Support Program (USD250 million); (vi) July 24, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (vii) August 10, Sustaining the Gains of the Regional Cooperation in the Greater Mekong Subregion (Additional Financing) (USD0.05 million).
|08B2 - Other||KHR2,399,800,722,726||USD591,700,000||
(i) 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, 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) May 29, 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) June 5, 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, 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) June 11, The European Union (EU) announced 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; (vii) June 12, 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).
|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, 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) May 26, 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, The government has ordered the suspension of white rice exports, to secure domestic supplies; (ii) May 20, suspension of white rice exports has been lifted; (iii) June, The Royal Government will introduce 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.
|12 - Non-Economic Measures||
April: (i) 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) Quarantine and self-isolation measures; (iii) Schools and casinos are closed and the government has banned public events with more than 50 participants; (iv) The Khmer New Year break has been cancelled; (v) May 20, The authorities have lifted the entry ban on citizens from Iran, Italy, Germany, Spain, France, and the US.