Eximbank extends $13.3 million in loans to Cambodia
Hong Young-pyo, left, senior vice president at the Export-Import Bank of Korea (Korea Eximbank), shakes hands with Cambodian Finance Minister Aun Pornmoniroth in Phnom Penh, Tuesday, after signing a contract to provide $13.3 million in loans to the country. Cambodia plans to use the money for its Siem Reap River Improvement Project Phase II. / Courtesy of Eximbank Korea
By Kim Jae-won
The Export-Import Bank of Korea (Korea Eximbank) said Tuesday that it will provide $13.3 million in low-interest loans to Cambodia, for a river improvement project.
Hong Young-pyo, senior vice president at Korea Eximbank, signed the deal with Cambodian Finance Minister Aun Pornmoniroth in Phnom Penh. The money will be used for the Siem Reap River Improvement Project Phase II Project, one of the most important projects in the country.
Siem Reap is a tourism destination and site of internationally well-known temple complex Angkor Wat. It is about 200 kilometers northwest of Phnom Penh, the capital.
“We expect the project will contribute to preserving Angkor Wat in Siem Reap,” Hong said. “We also anticipate people in the region will enjoy additional income through preserving the heritage.”
Eximbank Korea said the project will prevent the river flooding, improving the lives of residents and preventing diseases. The lender also said Korean companies with technology in water resources development will benefit from the project
The loan is part of the lender’s Economic Development Cooperation Fund (EDCF), which is designed to help developing countries improve their industries and support economic stabilization. The government established the fund in 1987 and it has provided a total of $11.8 billion to 350 projects in 53 countries.
The highest policy-making authority of the EDCF is the Fund Management Council, which has 13 members, most of whom are ministerial-level government officials. The direction of EDCF operations and the assumption of principal policy-making responsibilities rest with the Ministry of Strategy and Finance, which also coordinates policy with other relevant ministries.
Eximbank Korea is responsible for the administrative operation of the EDCF, including project appraisal, loan agreements and loan disbursements. Other duties include collecting principal and interest payments, supervising projects and evaluating project operations.
The EDCF is one of two pillars of the government’s official development assistance program, along with the Korea International Cooperation Agency’s activities. The EDCF charges low interest on its loans while the KOICA offers free help programs to developing nations.