The UAE has pledged to provide a $500 million credit line to Cambodia to import goods from Arab countries, a post on Prime Minister Hun Sen’s Facebook page said on Tuesday.
The pledge was made during a meeting between Sheikh Ahmed bin Dalmook bin Juma al-Maktoum, a member of the UAE ruling family, to Prime Minister Hun Sen in Phnom Penh on Tuesday.
In addition to the loan, Sheikh Ahmed will also consider other Cambodian investment possibilities in sectors such as oil and gas, trade and finance.
Eang Sophalleth, a personal assistant to the prime minister said this is the beginning of trade relations between the two countries, and through the credit line, Cambodia can purchase any type of good from that country.
The prime minister asks relevant institutions to discuss where to start using the budget.
The credit line service is a maximum amount promised by countries or private institutions, depending on the receivers’ creditworthiness.
In next year’s budget, the government plans to take a new $2 billion loan, which will increase the Kingdom’s debt burden to 31.5 per cent of GDP next year, an analyst from credit rating agency Moody’s said. He added that the figure remained at a moderate level globally.