Abstract
2019 Article IV consultation; Press Release; Staff Report; and Statement by the Executive Director for Cambodia
Fund Relations
(As of September 30, 2019)
Membership Status
Joined December 31, 1969; accepted the obligations under Article VIII, Sections 2, 3, and 4 on January 1, 2002.
| General Resources Account: | SDR Million | Percent Quota |
|---|---|---|
| Quota | 175.00 | 100.0 |
| Fund holdings of currency (Holdings Rate) | 153.13 | 87.50 |
| Reserve Tranche Position | 21.88 | 12.50 |
| General Resources Account: | SDR Million | Percent Quota |
|---|---|---|
| Quota | 175.00 | 100.0 |
| Fund holdings of currency (Holdings Rate) | 153.13 | 87.50 |
| Reserve Tranche Position | 21.88 | 12.50 |
| SDR Department: | SDR Million | Percent Allocation |
|---|---|---|
| Net cumulative allocation | 83.92 | 100.00 |
| Holdings | 88.77 | 105.78 |
| SDR Department: | SDR Million | Percent Allocation |
|---|---|---|
| Net cumulative allocation | 83.92 | 100.00 |
| Holdings | 88.77 | 105.78 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements:
Formerly PRGF.
Overdue Obligations and Projected Payments to the Fund 2/
(SDR Million; based on existing use of resources and present holdings of SDRs):
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | |||||
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | |||||
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
Multilateral Debt Relief Initiative
As part of the Multilateral Debt Relief Initiative (MDRI), the IMF Executive Board on January 5, 2006, approved relief on 100 percent of debt incurred by Cambodia to the IMF before January 1, 2005. This resulted in the forgiving of all of Cambodia’s outstanding debt to the IMF, a total of SDR 56.8 million (about US$82 million). The authorities intend to spend the resources over a number of years, initially on rural irrigation projects. The National Bank of Cambodia (NBC) transferred the full MDRI proceeds to the Ministry of Economy and Finance effective March 2006.
Safeguards Assessment
A voluntary safeguards assessment of the NBC was completed in January 2010 at the request of the authorities, which updated the previous March 2004 voluntary assessment. The update assessment found that the NBC had taken steps to strengthen aspects of its safeguards framework; however, important recommendations proposed in 2004 were still outstanding, and some new risks had emerged in the area of external audit.
Exchange Rate Arrangement and Payments System
Cambodia’s de facto exchange regime is classified as other-managed arrangement. The de jure regime is a managed float. The official exchange rate, which is expressed in Riels per U.S. dollar, applies to all official external transactions conducted by the central government and state enterprises, and is used for accounting purposes by the NBC. It is determined by the foreign exchange market, with the official rate adjusted to be within 1 percent of the market rate on a daily basis.
Cambodia accepted the obligations of Article VIII, Sections 2, 3, and 4 on January 1, 2002. Cambodia maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions.
Article IV Consultation
Cambodia is on the standard 12-month Article IV consultation cycle. The last Article IV consultation discussions were held in Phnom Penh during September 19 – October 2, 2018. The Executive Board concluded the Article IV consultation (IMF Country Report 18/369) on November 28, 2018.
Financial Sector Assessment Program (FSAP)
The joint IMF-World Bank FSAP mission took place in March 2010 and the assessment was completed in October 2010.
Resident Representative
Mr. Yasuhisa Ojima has been the IMF Resident Representative for Cambodia since September 2019.
Relations with Other International Financial Institutions
World Bank: http://www.worldbank.org/en/countrv/cambodia
Asian Development Bank: https://www.adb.org/countries/cambodia/main
Main Websites of Data
National Bank of Cambodia (www.nbc.org.kh)
Exchange rates
Balance of payments
Ministry of Economy and Finance (www.mef.gov.kh)
Government budget
Fiscal revenue, expenditure, and financing
Public Debt Bulletin
National Institute of Statistics (www.nis.gov.kh)
Consumer Price Index
National accounts
Population census
Labor force survey
Socioeconomic survey
Household survey
National Summary Data Page (https://www.nbc.org.kh/english/economic_research/NSDP.html)
Statistical Issues
(September 2019)
| I. Assessment of Data Adequacy for Surveillance | |
| General. Data provision is broadly adequate for surveillance. Extensive technical assistance (TA) has been provided by the Fund, United Nations Development Program, Asian Development Bank (ADB), and World Bank, as well as by bilateral partners, leading to substantial capacity improvements. Despite the progress made in improving data and statistics, several shortcomings in macroeconomic data still hamper timely and comprehensive analysis. | |
| National accounts. The reliability of the national accounts is impacted by an outdated base year (2000). The Cambodian economy has rapidly evolved, as has its informal sector which is using technology to increase value-added (such as in the transportation sector). Sectors such as agriculture and construction lack adequate volume measures, and more broadly the absence of relevant price deflators underscore the need for upgrading statistical techniques and data sources used for compiling GDP by output. For GDP by expenditure, data source constraints impact in particular, the measurement of gross capital formation. The NIS is currently revising the sources and methods for compiling national accounts, assisted by SIDA and UNESCAP; and is urged to complete and disseminate the rebased GDP. Implementing practices to assure the integrity of the rebased national accounts, such as by publicly announcing in advance a planned release date and/or advance notice of the impending methodological changes would promote transparency. The availability of high frequency indicators such as quarterly GDP and a production index would support more agile monitoring of economic developments. | |
| Price statistics. With recent technical assistance from the Fund (August 2019), the NBC is implementing a work program to compile a residential property price index (RPPI) to facilitate the monitoring of price developments in the real estate market. A prototype RPPI for internal review is expected in early 2021.The compilation of the consumer price index (CPI) suffers from outdated weights—drawn from the 2004 Cambodia Socio-Economic Survey-based household expenditure data—and insufficient geographic coverage, as well as delays in data dissemination. The NIS is planning to update the CPI series, using 2014 household expenditures to update the basket and weights. A producer price index (PPI) is under development as part of broader efforts to strengthen price measures for the national accounts. | |
| Government finance statistics (GFS). The Ministry of Economy and Finance (MEF) is making steady progress on improving government finance (GFS) and public sector debt statistics (PSDS). As an outcome of Fund TA, annual GFS for budgetary central and local governments are compiled following the Government Finance Statistics Manual 2014 (GFSM 2014). A consolidated general government series is not yet available as the MEF is working on the source data for extrabudgetary units (public administrative establishments). A prototype financial balance sheet for the budgetary central government has also been compiled. To facilitate policy dialog, promoting the use of GFS would improve budget planning and enhance data transparency. To this end, streamlining the budget table with the GFSM2014 framework would enhance comparative analysis of actuals and projections. The authorities are also encouraged to report quarterly PSDS to the Joint World Bank-IMF database; and to actively monitor public private partnerships (PPPs) with a view to covering any emerging (and/or contingent) liabilities. | |
| Monetary and financial statistics (MFS). The NBC reports monthly monetary data using STA’s standardized reporting forms for the central bank and other depository corporations. As a result of a TA mission conducted in 2017, the NBC also started reporting monetary data for other financial corporations (OFCs). However, the reported data for OFCs cover only the specialized banks which constitutes around one percent of the financial sector. OFC data needs to be improved to include all OFCs (e.g. insurance companies, non-deposit taking microfinance institutions and leasing companies). Further, there is little information to gauge the exact size of the shadow banking sector which includes institutions such as real estate developers, pawn shops and payment service providers. A recent MCM diagnostic review of the NBC’s IT needs for regulatory reporting—which provides source data for MFS—has proposed a roadmap to support NBC’s efforts to fully automate regulatory reporting. Future work on streamlining data collections by simplifying and harmonizing reporting requirements and templates. should take full account of MFS and FSI compilation requirements. | |
| Financial sector surveillance/financial access. The NBC reports to the Fund all core and eleven encouraged FSIs on a monthly frequency and with one quarter timeliness. The quality of FSIs could be further improved including through enhancements in sectoral allocation of assets and liabilities. Several series and indicators of the Financial Access Survey (FAS), including the two indicators—commercial bank branches per 100,000 adults and ATMs per 100,000 adults—used to monitor Target 8.10.1 of the SDGs are disseminated. | |
| External sector statistics. Cambodia’s quarterly balance of payments and international investment position (IIP) are compiled by the NBC according to the Balance of Payments and International Investment Position Manual, sixth edition (BPM6). There are gaps in coverage, resulting from source data limitations; and some components are compiled on the basis of estimation methods. There is scope for improving the data on inward foreign direct investment (FDI)— a key component of Cambodia’s external transactions and positions, as estimation draws heavily on FDI approvals. Other areas of the financial account also have gaps, including for other investment of nonfinancial corporations (trade credits and other debt liabilities). External debt statistics do not cover borrowing by resident nonfinancial corporations. The General Department of Customs and Excise (GDCE) produces monthly and quarterly external trade data; the monthly data are regularly provided to NBC for estimate goods in the balance of payments. Technical assistance is ongoing under the Project on Improvement of External Sector Statistics which is funded by the government of Japan and executed through the IMF Capacity Development Office in Thailand (CDOT). In March 2018, TA from IMF CDOT assisted in improving coverage and estimation methods for the current account, particularly for travel, compensation of employees and workers’ remittances. More recently, TA has focused on streamlining the compilation for inward FDI of banks, microfinance institutions, and nonfinancial corporations; and on the coverage of gross reserve assets. | |
| II. Data Standards and Quality | |
| Cambodia participates in the IMF’s General Data Dissemination System (e-GDDS). Its National Summary Data Page (NSDP) was launched on May 30, 2018. (https://www.nbc.org.kh/english/economic_research/NSDP.html) | No data ROSC are available. |
| I. Assessment of Data Adequacy for Surveillance | |
| General. Data provision is broadly adequate for surveillance. Extensive technical assistance (TA) has been provided by the Fund, United Nations Development Program, Asian Development Bank (ADB), and World Bank, as well as by bilateral partners, leading to substantial capacity improvements. Despite the progress made in improving data and statistics, several shortcomings in macroeconomic data still hamper timely and comprehensive analysis. | |
| National accounts. The reliability of the national accounts is impacted by an outdated base year (2000). The Cambodian economy has rapidly evolved, as has its informal sector which is using technology to increase value-added (such as in the transportation sector). Sectors such as agriculture and construction lack adequate volume measures, and more broadly the absence of relevant price deflators underscore the need for upgrading statistical techniques and data sources used for compiling GDP by output. For GDP by expenditure, data source constraints impact in particular, the measurement of gross capital formation. The NIS is currently revising the sources and methods for compiling national accounts, assisted by SIDA and UNESCAP; and is urged to complete and disseminate the rebased GDP. Implementing practices to assure the integrity of the rebased national accounts, such as by publicly announcing in advance a planned release date and/or advance notice of the impending methodological changes would promote transparency. The availability of high frequency indicators such as quarterly GDP and a production index would support more agile monitoring of economic developments. | |
| Price statistics. With recent technical assistance from the Fund (August 2019), the NBC is implementing a work program to compile a residential property price index (RPPI) to facilitate the monitoring of price developments in the real estate market. A prototype RPPI for internal review is expected in early 2021.The compilation of the consumer price index (CPI) suffers from outdated weights—drawn from the 2004 Cambodia Socio-Economic Survey-based household expenditure data—and insufficient geographic coverage, as well as delays in data dissemination. The NIS is planning to update the CPI series, using 2014 household expenditures to update the basket and weights. A producer price index (PPI) is under development as part of broader efforts to strengthen price measures for the national accounts. | |
| Government finance statistics (GFS). The Ministry of Economy and Finance (MEF) is making steady progress on improving government finance (GFS) and public sector debt statistics (PSDS). As an outcome of Fund TA, annual GFS for budgetary central and local governments are compiled following the Government Finance Statistics Manual 2014 (GFSM 2014). A consolidated general government series is not yet available as the MEF is working on the source data for extrabudgetary units (public administrative establishments). A prototype financial balance sheet for the budgetary central government has also been compiled. To facilitate policy dialog, promoting the use of GFS would improve budget planning and enhance data transparency. To this end, streamlining the budget table with the GFSM2014 framework would enhance comparative analysis of actuals and projections. The authorities are also encouraged to report quarterly PSDS to the Joint World Bank-IMF database; and to actively monitor public private partnerships (PPPs) with a view to covering any emerging (and/or contingent) liabilities. | |
| Monetary and financial statistics (MFS). The NBC reports monthly monetary data using STA’s standardized reporting forms for the central bank and other depository corporations. As a result of a TA mission conducted in 2017, the NBC also started reporting monetary data for other financial corporations (OFCs). However, the reported data for OFCs cover only the specialized banks which constitutes around one percent of the financial sector. OFC data needs to be improved to include all OFCs (e.g. insurance companies, non-deposit taking microfinance institutions and leasing companies). Further, there is little information to gauge the exact size of the shadow banking sector which includes institutions such as real estate developers, pawn shops and payment service providers. A recent MCM diagnostic review of the NBC’s IT needs for regulatory reporting—which provides source data for MFS—has proposed a roadmap to support NBC’s efforts to fully automate regulatory reporting. Future work on streamlining data collections by simplifying and harmonizing reporting requirements and templates. should take full account of MFS and FSI compilation requirements. | |
| Financial sector surveillance/financial access. The NBC reports to the Fund all core and eleven encouraged FSIs on a monthly frequency and with one quarter timeliness. The quality of FSIs could be further improved including through enhancements in sectoral allocation of assets and liabilities. Several series and indicators of the Financial Access Survey (FAS), including the two indicators—commercial bank branches per 100,000 adults and ATMs per 100,000 adults—used to monitor Target 8.10.1 of the SDGs are disseminated. | |
| External sector statistics. Cambodia’s quarterly balance of payments and international investment position (IIP) are compiled by the NBC according to the Balance of Payments and International Investment Position Manual, sixth edition (BPM6). There are gaps in coverage, resulting from source data limitations; and some components are compiled on the basis of estimation methods. There is scope for improving the data on inward foreign direct investment (FDI)— a key component of Cambodia’s external transactions and positions, as estimation draws heavily on FDI approvals. Other areas of the financial account also have gaps, including for other investment of nonfinancial corporations (trade credits and other debt liabilities). External debt statistics do not cover borrowing by resident nonfinancial corporations. The General Department of Customs and Excise (GDCE) produces monthly and quarterly external trade data; the monthly data are regularly provided to NBC for estimate goods in the balance of payments. Technical assistance is ongoing under the Project on Improvement of External Sector Statistics which is funded by the government of Japan and executed through the IMF Capacity Development Office in Thailand (CDOT). In March 2018, TA from IMF CDOT assisted in improving coverage and estimation methods for the current account, particularly for travel, compensation of employees and workers’ remittances. More recently, TA has focused on streamlining the compilation for inward FDI of banks, microfinance institutions, and nonfinancial corporations; and on the coverage of gross reserve assets. | |
| II. Data Standards and Quality | |
| Cambodia participates in the IMF’s General Data Dissemination System (e-GDDS). Its National Summary Data Page (NSDP) was launched on May 30, 2018. (https://www.nbc.org.kh/english/economic_research/NSDP.html) | No data ROSC are available. |
Cambodia: Table of Common Indicators Required for Surveillance
(As of October 21, 2019)
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Semi-annual (S), Annually (A), Irregular (I), and Not Available (N/A).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Deposit and loan rates.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Cambodia: Table of Common Indicators Required for Surveillance
(As of October 21, 2019)
| Date of Latest Observation | Date Received | Frequency of Data1 | Frequency of Reporting1 | Frequency of Publication1 | |
|---|---|---|---|---|---|
| Exchange Rates | 10/20/2019 | 10/21/2019 | D | D | W |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities2 | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Reserve/Base Money | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Broad Money | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Central Bank Balance Sheet | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Consolidated Balance Sheet of the Banking System | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Interest Rates3 (Loan and Deposit rates) | 6/2019 | 10/2019 | M | M, 2 month lag | M |
| Consumer Price index | 8/2019 | 10/2019 | M | M, 1–2 month lag | M |
| Revenue, Expenditure, Balance and Composition of Financing4—General | 8/2019 | 10/2019 | M | M, 1–2 month lag | M |
| Revenue, Expenditure, Balance and Composition of Financing—Central | 8/2019 | 10/2019 | M | M, 1–2 month lag | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 6/2019 | 9/2019 | S | S, 3 month lag | S |
| External Current Account Balance | Q2/2019 | Q3/2019 | Q | Q, 3–5 month lag | Q |
| Exports and Imports of Goods and Services | 9/2019 | 10/2019 | M | M, 2 month lag | M |
| GDP/GNP | 2018 | 6/2019 | A | A, 6 month lag | A |
| Gross External Debt | 3/2019 | 9/2019 | Q | Q, 3 month lag | Q |
| International Investment Position | Q2/2019 | 10/2019 | Q | Q, 4 month lag | Q |
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Semi-annual (S), Annually (A), Irregular (I), and Not Available (N/A).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Deposit and loan rates.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Cambodia: Table of Common Indicators Required for Surveillance
(As of October 21, 2019)
| Date of Latest Observation | Date Received | Frequency of Data1 | Frequency of Reporting1 | Frequency of Publication1 | |
|---|---|---|---|---|---|
| Exchange Rates | 10/20/2019 | 10/21/2019 | D | D | W |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities2 | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Reserve/Base Money | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Broad Money | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Central Bank Balance Sheet | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Consolidated Balance Sheet of the Banking System | 8/2019 | 10/2019 | M | M, 2 month lag | M |
| Interest Rates3 (Loan and Deposit rates) | 6/2019 | 10/2019 | M | M, 2 month lag | M |
| Consumer Price index | 8/2019 | 10/2019 | M | M, 1–2 month lag | M |
| Revenue, Expenditure, Balance and Composition of Financing4—General | 8/2019 | 10/2019 | M | M, 1–2 month lag | M |
| Revenue, Expenditure, Balance and Composition of Financing—Central | 8/2019 | 10/2019 | M | M, 1–2 month lag | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 6/2019 | 9/2019 | S | S, 3 month lag | S |
| External Current Account Balance | Q2/2019 | Q3/2019 | Q | Q, 3–5 month lag | Q |
| Exports and Imports of Goods and Services | 9/2019 | 10/2019 | M | M, 2 month lag | M |
| GDP/GNP | 2018 | 6/2019 | A | A, 6 month lag | A |
| Gross External Debt | 3/2019 | 9/2019 | Q | Q, 3 month lag | Q |
| International Investment Position | Q2/2019 | 10/2019 | Q | Q, 4 month lag | Q |
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Semi-annual (S), Annually (A), Irregular (I), and Not Available (N/A).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Deposit and loan rates.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.