According to the Cambodian Ministry of Economy and Finance's 2026 first-half budget execution report, the Cambodian government, together with its development partners, successfully signed grant and concessional loan cooperation agreements totaling US$470 million in the first half of the year. These agreements will facilitate the implementation of 12 key development projects, injecting strong financial momentum into the country's economic and social development.
The funds comprise two categories with clear allocations. Grants totaling US$10.42 million will specifically support five livelihood and development projects. Concessionary loans totaling US$460 million (approximately US$337 million in Special Drawing Rights) will be used to advance the remaining seven key projects. These loans account for 15.01% of Cambodia's 2026 first-half fiscal budget, representing a significant portion of the fiscal development funds for the first half of the year.
It is understood that the approved US$470 million will be precisely focused on four core strategic areas: infrastructure construction, human resource development, agriculture and water resource management, and energy industry upgrading. This comprehensive approach aims to address Cambodia's development shortcomings and solidify the foundation for industrial development.
The implementation of these projects will continuously empower Cambodia's long-term economic growth, effectively improve people's well-being, and enhance social public infrastructure. Meanwhile, in accordance with Cambodia's 2026 Fiscal Law, the country's external debt ceiling for this year is set at 2.25 billion Special Drawing Rights (SDRs), equivalent to approximately US$3 billion, a 12.5% increase compared to the 2025 ceiling. This moderate increase in the external debt limit further broadens Cambodia's financing channels for future development, reserving ample funding for major future projects and sustained economic recovery.
