Publication: Cambodia: Joint Bank-Fund Debt Sustainability Analysis 2018 Update
Date
2019-02-05
ISSN
Published
2019-02-05
Author(s)
World Bank
International Monetary Fund
Abstract
The Debt Sustainability Analysis (DSA) using the revised joint IMF/WB Debt Sustainability
Framework for Low Income Countries (LIC-DSF) shows that Cambodia remains at low risk of
external debt distress. All debt burden indicators are projected to remain under their indicative
thresholds under the baseline and the shock scenarios. While the overall risk of debt distress is
low, the analysis indicates that debt sustainability is vulnerable to export and growth shocks,
and the materialization of contingent liabilities. Furthermore, the public and publicly
guaranteed (PPG) debt-to-GDP ratio is projected to rise by more than 10 percentage points
during the next decade due to projected large fiscal deficits in the medium term. These findings
reinforce the importance of implementing reforms to increase the economy’s resilience to
external shocks and encourage export and economic diversification. Efforts to mobilize fiscal
revenue, to strengthen the Public Investment Management framework (including for PPPs) and
further enhance monitoring of PPP and financial sector risks, as well as introduction of a debtbased fiscal anchor, are necessary to ensure debt sustainability in the medium term.
Citation
“World Bank; International Monetary Fund. 2019. Cambodia; Cambodia : Joint Bank-Fund Debt Sustainability Analysis 2018 Update. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/31299 License: CC BY 3.0 IGO.”