Cambodia’s Public Debt Reaches $12.67B, Government Maintains Low-Risk Outlook

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Cambodia’s Public Debt Reaches $12.67B, Government Maintains Low-Risk Outlook
Cambodia’s Public Debt Reaches $12.67B, Government Maintains Low-Risk Outlook./B2B Cambodia

Cambodia’s public debt stood at USD 12.67 billion at the end of June 2025, yet the Ministry of Economy and Finance (MEF) maintains that the burden remains sustainable and at low-risk of causing distress, according to the latest government debt bulletin.

Released on August 29, 2025, the bulletin revealed that external borrowing dominates the portfolio, accounting for 99 per cent of the total debt, with the remaining 1 per cent attributed to domestic debt. From the external debt total, 61 per cent is owed to bilateral partners, such as China, Japan, France and Korea, while 39 per cent is held by multilateral lenders, including the Asian Development Bank (ADB) and the World Bank.

The debt stock is largely denominated in U.S. dollars (46 per cent), followed by SDRs (18 per cent), Japanese yen (11 per cent), Chinese yuan (10 per cent) and Euros (8 per cent).

Borrowing and Disbursements

In the second quarter of 2025, Cambodia signed new concessional loan agreements worth USD 116.66 million, bringing total borrowing for the first half of the year to USD 196.48 million—a 37 per cent decline compared to the same period in 2024.

Disbursements reached USD 382.72 million, down 16 per cent year-on-year, with 87 per cent directed towards infrastructure projects.

The government also issued KHR 160 billion (USD 39.9 million) in securities during the first half, representing 46 per cent of the annual ceiling.

Debt Service Rising

Debt service payments climbed to USD 296.95 million in the first six months, marking an increase of 29 per cent from 2024. From this total, USD 267.7 million were attributed to external repayments, while domestic repayments totalled USD 29.25 million.

Cambodia Public Debt Outlook

Preliminary results from the government’s Debt Sustainability Analysis (DSA) placed Cambodia’s external public debt at 18.4 per cent of GDP, well below the internationally recognised threshold of 40 per cent.

The MEF has emphasised that public debt continues to be managed “prudently”, with borrowing focused on concessional terms and projects that support long-term growth and productivity.