The Asian Development Bank (ADB) has approved a loan worth US$40 million and an aid package worth US$600,000 to help strengthen Cambodia’s financial sector and promote financial inclusion within the country’s unbanked population.
Cambodia’s impressive economic growth in recent years has helped reduce the poverty rate from 47.8% in 2007 to 13.5% in 2014, according to ADB.
However, many people are still vulnerable to poverty, especially those in rural areas where 90% of the poor live, and about 41% of the population live on US$2 per day or less, said the bank.
It also added that financial sector of the Southeast Asian country needs to be further developed, because only 59% of the population have access to formal financial services, and about 30% of the adult population are excluded from any form of financial services.
The project will help the Cambodian government develop its financial sector and promote inclusive growth, said Hiroyuki Aoki, senior financial specialist at the ADB’s Southeast Asia Department.VNA