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|A policeman (C) and people wear facemasks, used as a preventive measure against the COVID-19 novel coronavirus, at a market in Phnom Penh in March this year. (Photo: AFP)|
The bank said the loan will be used to strengthen Cambodia's health care system, increase social assistance to the poor and vulnerable, and provide economic stimulus to businesses, including small and medium-sized enterprises (SMEs).
According to the ADB, Cambodia is highly vulnerable to the negative impacts from COVID-19, due to its open economy, narrow economic base, and highly mobile population.
The bank forcast Cambodia's economy to contract by 5.5 percent in 2020 due to the decline in tourism; lower exports of garments, footwear, and travel goods; and a slowdown in construction. The downturn risks pushing an additional 1.3 million Cambodian people into poverty.
On the same day, Cambodian Economy and Finance Ministry Secretary of State Vongsey Vissoth said the government has allocated 1.16 billion USD to address the economic and social impacts of the coronavirus.
A total of 564 million USD has been allocated for health and social assistance and 600 million USD for economic support through lending to SMEs, he said during a press conference.