Bank Official: The Global Economic Crisis Does Not Affect Banks in Cambodia – Thursday, 27.8.2009

Posted on 28 August 2009. Filed under: Week 627 |

The Mirror, Vol. 13, No. 627

“Phnom Penh: The director of the National Bank of Cambodia said that even though the financial crisis is affecting many countries in the world, Cambodia does not suffer from it seriously.

“In the morning of 26 August 2009, the Club of Cambodian Journalists held a roundtable meeting about banking management and the trust of the public, with the participation of many journalists and representatives of the National Bank of the Kingdom of Cambodia.

“Ms. Tal Nay Im, the director general of the National Bank of Cambodia, who represented the governor of the National Bank of Cambodia, Mr. Chea Chanto, to preside over the meeting, said, ‘In this time of a global financial crisis, we must point out the progress of the banking systems in Cambodia within the last two years.’ She went on to say that the banking system in Cambodia operates at present with the National Bank of Cambodia as the central bank of the country, 27 commercial banks, 2 representation offices of foreign banks, 6 expert banks, and 25 micro-finance institutions under the control and monitoring of the National Bank of Cambodia.

“Ms. Tal Nay Im added that during the last two years, he number of commercial banks operating in Cambodia has increased. Most of them are foreign banks that come to invest in the banking sector in Cambodia. The increase in the interest looking for benefits by foreign banks at the Cambodia market is considered, by Cambodian people, as a positive point, because Cambodia has political stability and a market, seen by foreign investors as having potential for strong progress under the legal framework of Cambodia, though there is no neutrality yet, but there is a favorable environment to attract investment in a free trade atmosphere, which does not limit the in-and-out flow of capital or currency exchange operations. She continued to say that also the fact that there is a high level of dollarization in the Cambodian economy helps to ease the control of active and inactive property of a majority of the banks that operates with dollars. Even though Cambodia is a small country in the region, it has potential for development and investment for profit almost in every economic sector which can be considered as having an interesting outlook for foreign investors.

“Ms. Tal Nay Im went on to say that in Cambodia in 2009, the number of people who deposit money at commercial banks is 820,284, corresponding to 6% of the country’s populations, excluding the deposits at the micro-finance system. Also, Cambodia had reserved currency resources at the National Bank of US$100 million in 1998, but now US$2,300 million in 2008.

“The Country Representative of the Konrad Adenauer Foundation of Germany, Ms. Rabea Brauer, said that provided that Cambodia does not suffer from the impact of the financial crisis as seriously as the United States, according to a study conducted previously, the financial crisis has an impact to a smaller extent, especially on women and children, and this impact will continue.

“She added that journalists should focus on topics about the impact of the global financial crisis on women and children.”Kampuchea Thmey, Vol.8, #2033, 27.8.2009

Newspapers Appearing on the Newsstand:
Thursday, 27 August 2009

Areyathor, Vol.16, #1409, 27.8.2009

The King Asks the Minister of Justice to Check the Decision of the Municipal Court on Mr. Hang Chakra [the editor-in-chief of Khmer Machas Srok, who was sentenced to serve 12 months in prison for defamation and disinformation against government officials]

Deum Ampil, Vol.3, #273, 27.8.2009

Phnom Penh Authorities Will Use Strict Measures on Teens under the Age of Sixteen Who Go to Clubs, Guesthouses, and Hotels after 8:00 p.m.
Fishermen Suffer from the Global Economic Crisis, though Cambodia Is the Fourth Country Rich in Fresh Water Fish [after China, India, and Bangladesh; the consumption of food through income from fishery dropped dramatically as prices of food, materials, petroleum, and rice rise – according to the FAO and the Cambodia Development Resource Institute]
The Asian Development Bank[ADB] and South Korea Support the Construction of Roads in the Border Areas [in order to speed up the alleviation of poverty, to increase opportunities to create economic zones, and to boost efforts in commerce and in tourism in the Greater Mekong Subregion; the ADB loans US$16.3 million to construct a national road of 113 km in the northwest of Cambodia to increase border crossings with Thailand, and the Ministry of Strategy and Finance of South Korea loans US$26 million to build a road crossing Banteay Meanchey and Oddar Meanchey to connect them from the west to the east along the Thai border]
The Number of Beer Selling Women Increases after Some Garment Factories Had Closed [according to a Secretary of State of the Ministry of Women’s Affair, Ms. Hor Malin]

Kampuchea Thmey, Vol.8, #2033, 27.8.2009

Bank Official: The Global Economic Crisis Does Not Affect Banks in Cambodia
[The Minister of Environment] Mr. Mok Mareth Said that Some Natural Conservation Regions Are Being Destroyed by Opportunists [these are not named – but he appeals to local officials, the courts, prosectures, the armed forces, the military police, and other national and internationa organizations to help to support the activities potecting and conserving the environment]
Tuol Kork Authorities Gathered 22 Prostitutes and Sent Them to a Social Center [Phnom Penh]

Khmer Machas Srok, Vol.3, #477, 27.8.2009

The Dispute about the Renakse Hotel [in front the Royal Palace] Reached the King [after there had been a request for his intervention, but the King referred this case to Prime Minister Hun Sen to make a decision – Phnom Penh]
Sand Dredging Reoccurred Strongly while the Head of the Government Is Quiet [at Khsach Kandal district, along the Mekong River in Kandal, and in a community along the Bassac River]

Koh Santepheap, Vol.42, #6739, 27.8.2009

A Conflict for Interest at the Chong Kneas Motor Boat Port [between the Sou Ching residents’ supporting association and the motor boat tourism association] Affects Tourism [tourists could not board the boats to visit the Tonle Sap lake – Siem Reap]
Measures to Crack Down on Teen Gangs: [Phnom Penh governor] Kep Chuktema: Some Children of Powerful and Rich People Are in Teen Gangs – and if They Are Not Brought under Control, Then Who Should Be?

Rasmei Kampuchea, Vol.17, #4983, 27.8.2009

More Than 13 Million Cambodian People [corresponding to 94%] Have Not Used Bank Accounts [because they have not trusted the bank system in Cambodia; only more than 820,000 have created bank accounts]
Siamese [Thai] Black Clad Soldiers [of the Thai “Burapa” Border Protektion Unit] Cleared a Road by Machinery to Construct a Wooden Bridge to the Chub Angkunh Border Crossing, Leading to the Ta Krabei Temple, but Cambodian Solders Stopped Them; Many [Cambodian] Tanks Have Been Withdrawn from the Frontline
The United Nations Has Selected a Candidate to Replace Mr. Robert Petit [a former international co-prosecutor of the Khmer Rouge Tribunal; but the identity of the new person as not yet been revealed]
The Person that the Municipal Court Had Jailed Nearly Four Years ago without a Hearing [because of losing his case file] Was Released [Kandal – he gets no compensation payment; it has also been asked in the press who is responsible for any payment to the suspect. No information whether anyone will be punished for jailing him without legal justification]

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