September 3, 2025
PHNOM PENH – As of the end of the first half of 2025, Cambodia’s public debt stood at approximately $12 billion, a level assessed by Minister of Economy and Finance Aun Pornmoniroth as “manageable, with sustainability and low risk”.
In the first six months of 2025, the government signed nearly $200 million in new concessional loans with development partners, a decrease of nearly 40% compared to the same period in 2024, according to the finance ministry.
According to the Cambodia Public Debt Statistical Bulletin, signed by Pornmoniroth on August 26, the total public debt stock (including inherited debt) at the end of the first half of 2025 amounted to $12.67 billion. Of this: 99% (approximately $12.54 billion) was external public debt, including 61% bilateral and 39% multilateral debt, while 1% (about $128.5 million) was domestic public debt.
By currency, the debt was broken down as follows: US dollars, 18% in SDR (Special Drawing Rights), 11% in Japanese yen, 10% in Chinese yuan, 8% in euros and 7% in other currencies.
The report stated that in the first half of 2025, the Cambodian government signed concessional loan with development partners total amount of $196.48 million (equivalent to SDR 142.31 million), which accounts for around 7% of the ceiling permitted by Law (SDR 2 billion). All new loans during this period came from multilateral partners. If Compared to the same period in 2024, the value of newly signed concessional loans dropped by 37%.
“All the loans are highly concessional, with an average grant element of around 36%. The purpose of these new signed loan is to finance public investment projects in the priority sectors that support long-term sustainable economic growth and increase economic productivity/production,” it said.
During the first half of the year, the government repaid a total of 4296.95 million in public debt services. This included $267.7 million in public external debt service ($212.3 million in principal and $55.4 million in interest and other fees) and $29.25 million in domestic public debt service ($26.82 million in principal and $2.44 million in interest).
“The debt service payment in S1 2025 increased by approximately 29% Compared to the same period last year,” added the ministry.
Minister of Economy and Finance Aun Pornmoniroth stated that Cambodia’s public debt is currently assessed as sustainable and at low risk, reflecting the government’s cautious and prudent implementation of debt management strategies, as laid out in its Public Debt Management Strategy.
“Maintaining public debt sustainability depends on Cambodia’s strong debt management system,” he said.
Hong Vanak, an economist at the Royal Academy of Cambodia, explained that public debt is considered manageable when it remains around or below 30% of GDP.
“Indeed, debt becomes risky when it exceeds 50% of GDP. Some countries are exposed to high-risk debt burdens because their debt levels reach 60% to 80% of GDP, which makes them difficult to manage,” he noted.
According to IMF forecasting, Cambodia’s GDP in 2025 is estimated to be $49.799 billion.