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Exim Bank supports Cambodian rice sector

Xinhua | Updated: 2013-10-16 17:39

PHNOM PENH - The Export-Import Bank of China (Exim Bank) on Wednesday signed a deal to support Cambodia's Rural Development Bank (RDB) in financing to the rice sector.

Exim Bank's visiting Chairman Li Ruogu and RDB's President Son Kunthor inked the Memorandum of Understanding (MoU) under the presence of Cambodian Permanent Deputy Prime Minister Keat Chhon and Finance Minister Aun Porn Moniroth.

"Under the MoU, the Exim Bank will provide loans to the RDB without the need for a government guarantee in order to help Cambodia fulfill the goal of 1 million ton rice exports by 2015, " Keat Chhon said after the signing ceremony.

"The Exim Bank will continue to help Cambodia develop the economy and reduce poverty," Li Ruogu said.

Cambodia produced 9.31 million tons of paddy rice last year. Of this amount, besides local consumption, the country had roughly 3 million tons of milled rice left over for exports this year.

However, the country can export only the small amount of milled rice due to the lack of sophisticated post-harvesting technology and capital.

It is estimated that Cambodia needs about $350 million to invest in post harvest technology and to purchase paddy rice from farmers to process for exports in order to meet the 2015 target.

A government report showed that the Southeast Asian nation has exported 266,120 tons of milled rice in the first nine months of this year, up 106 percent year-on-year.

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