Thailand Emerges as Significant Lender for Top Cambodia Banks in Loan Portfolio
Cambodia’s Neighboring Buddy, Thailand, Lends a Hand With Infrastructure
Straight talk time, peeps! Let's chat about how Thailand's helping out Cambodia with some dough for infrastructure development, especially in the road department. Now, many Cambodians might not be in the loop about this neighborly financial support.
Way back in 2009, the Cambodian Ministry of Economy and Finance inked a loan deal with Thailand for over 1.4 billion baht to fund the repair of National Road No. 68, a route that stretches from the Chong Chom border checkpoint to Oddar Meanchey province, covering around 113 kilometers.
But shortly after that, squabbles over the Preah Vihear temple became a full-blown border dispute, and Cambodia wanted to back out of the loan agreement, claiming they had the funds to cover it.
Remember, Thailand had helped Cambodia out before with Roads No. 48 and 67 construction costs.
Fast-forward to 2019-2020, Thailand handed out another loan worth over 983 million baht to upgrade Road No. 67 (Siem Reap - Anlong Veng - Choam Khsant). The loan came with some strings attached: at least half of the materials and equipment must be Thai, and Thai nationals should work as contractors, engineers, and project consultants.
Cambodia's Payback Plan to Thailand:
2024: Around US$5.21 million in principal + US$900,000 in interest
2025: An additional US$1.72 million in principal + US$330,000 in interest
Cambodia also owes Vietnam US$2.08 million, showing that the Kingdom has sought loans from various neighboring countries.
Cambodia's Soaring Debt - China Remains Top Lender
As of Q1 2025, Cambodia's total public debt reached US$12.18 billion, with almost all of it being external debt. China remains the biggest foreign creditor, followed by the Asian Development Bank (ADB), the World Bank, Japan, South Korea, France, International Fund for Agricultural Development (IFAD), Asian Infrastructure Investment Bank (AIIB), Thailand, Germany, Vietnam, and India.
- TAGS
- Thailand
- Cambodia
- debt
- loan
- creditors
Extra Notes:There's no solid info available on when and under what conditions Thailand provided loans to Cambodia for infrastructure development between 2009 and 2020. These loans typically happen under regional cooperation frameworks, bilateral agreements, or through multilateral development organizations, often with mutually beneficial terms, reasonable repayment conditions, and technical assistance.
- Despite the border dispute over Preah Vihear in 2009, Thailand still extended a financial hand to Cambodia, providing a loan of over 1.4 billion baht for infrastructure development.
- In 2019-2020, Thailand renewed its aid by offering another loan worth over 983 million baht for the upgrade of Road No. 67, with a stipulation that at least half of the materials and labor must be Thai.
- As Cambodia's debt continues to rise, Thailand remains one of the Kingdom's creditor countries, with Cambodia expected to pay back around US$5.21 million in principal and US$900,000 in interest by 2024.
- In addition to Thailand, Cambodia has also sought loans from various neighboring countries, including Vietnam, demonstrating the Kingdom's dependence on regional financial support for its infrastructure projects.
