Is Cambodia's public debt standing at more than $15 billion?

For years, Cambodia's foreign debt has been a hot topic of debate among social media users. One of the Facebook posts claiming Cambodia’s public debt stands at more than $15 billion was posted recently. This claim has been reacted with mixed comments and shared by many Facebook users who are speaking Khmer. However, after checking reliable sources and the report released by the Ministry of Economy and Finance, it proves that the claim above is misleading.

This is about our investigation of this claim.

Social Media Claim

A claim made on social media in mid-July said that Cambodia owed foreign debt up to more than $15 billion, of which Cambodia owes to China up to 48 percent. Such claims on social media have been shared many times and have received mixed reviews from Facebook users who are speaking Khmer as well.

The following is a screenshot captured from the above claim on July 16th which translates in English as “Cambodia has a total debt of more than $ 15 billion (Ministry of Economy report) of which 48% owes to China. Congratulations!”.

Facebook Post | Archived Link

Fact Check

Fact Crescendo Cambodia starts reviewing the above claims through verification with news reports of various media and reports issued by the Royal Government of Cambodia, which led us to find out the following facts.

Cambodia's foreign debts have been reported by various sources in Cambodia. As of 2022, Cambodia’s total foreign debt stands at $9.81 billion. That figure is considered as below the benchmark ratio or risk level set by the International Monetary Fund (IMF).

Kampuchea Thmey | Archived Link

The Phnom Penh Post also reported on Cambodia’s foreign debt. Cambodia currently owes a total of $9.81 billion in foreign debt as of the end of the first quarter of 2022, a newspaper reported.

Phnom Penh Post | Archived Link

These newspapers published this information based on the clarification made by the spokesman of the Ministry of Economy and Finance, Mr. Meas Sok Sen San, who explained Cambodia’s foreign debt problem which has been discussed at a press conference on August 2nd.

YouTube Link | Archived Link

Cambodia’s Public Debt Situation as of End-Q1 2022, released by the Ministry of Economy and Finance in early June, shows that by the end of the first quarter of 2022, Cambodia has a total public debt of $9.81 billion, which is all public external debt.

Ministry of Economy and Finance | Archived Link

However, according to the 2021 report released by the Government of Cambodia, stating clearly that from 1993 to the end of 2021, Cambodia has signed concessional loan agreements with Development Partners accounted for $15.55 billion.

Ministry of Economy and Finance | Archived Link

Mr. Meas Sok Sen San, Secretary-General and Spokesman of the Ministry of Economy and Finance, did not respond to Fact Crescendo Cambodia requesting an explanation of the above loan size figures, but he pointed to the Cambodia Economic Update released by the World Bank last June.

The report “Cambodia Economic Update - Weathering the Oil Price Shock: Special Focus - Post-Pandemic Supply Chain Disruptions: Strategies to Reduce Logistics Costs” states that Cambodia’s public debt-to-GDP ratio reached 35% of GDP by end-2021.

World Bank Report | Archived Link

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You may find the details of this fact-check in Khmer language here as well.

Conclusion

Fact Crescendo Cambodia found that the posting of the above post was misleading. ​Cambodia as of 2022 has a total public debt of about $9.81 billion.