Cambodia maintains low risk debt as government strengthens fiscal discipline

PHNOM PENH, Mar. 12, 2026 (KPT) — Cambodia’s public debt remains sustainable and at low risk, supported by prudent borrowing policies and a robust fiscal management framework, Deputy Prime Minister and Finance Minister Aun Pornmoniroth said Thursday.

Presenting the latest debt report, Pornmoniroth stressed that the country’s debt indicators are well below international risk thresholds, reflecting the government’s cautious approach to borrowing and investment planning.

“As of the end of 2025, Cambodia’s public debt continues to be assessed as sustainable and at low risk of distress,” he said, adding that strong management systems have helped maintain fiscal stability.

According to the ministry, total public debt stood at $13.05 billion at the end of 2025, with 98 percent external and 2 percent domestic. The present value of debt to GDP was 18.7 percent, far below the 55 percent sustainability threshold.

Officials said Cambodia follows five principles in borrowing: ensuring repayment capacity, prioritizing concessional loans, directing funds to growth sectors, maintaining transparency, and investing mainly in infrastructure.

In 2025, $1.23 billion in new concessional loans were signed, with most disbursements financing infrastructure projects.

The government said prudent debt management is essential to sustaining growth and advancing Cambodia’s long term vision of becoming a high income country by 2050.