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Cambodia: Staff Report for the 2009 Article IV Consultation—Informational Annex

Author(s):
International Monetary Fund
Published Date:
December 2009
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Annex I. Cambodia: Fund Relations

As of September 30, 2009

I. Membership Status: Joined: 12/31/1969; Article VIII

II. General Resources Account:

SDR MillionPercent Quota
Quota87.50100.00
Fund Holdings of Currency87.50100.00

III. SDR Department:

SDR MillionPercent Allocation
Net cumulative allocation83.92100.00
Holdings68.5281.64

IV. Outstanding Purchases and Loans:

SDR MillionPercent Quota
PRGF arrangements00

V. Financial Arrangements:

TypeApproval

Date
Expiration

Date
Amount Approved

(SDR Million)
Amount Drawn

(SDR Million)
ESAF/PRGF10/22/199903/05/200358.5058.50
ESAF05/06/199408/31/199784.0042.00

VI. Projected Obligations to Fund: (SDR Million; based on existing use of resources and present holdings of SDRs)

Forthcoming
20092010201120122013
Principal0.000.000.000.000.00
Charges/Interest0.010.040.040.040.04
Total0.010.040.040.040.04

VII. 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.

VIII. Safeguards Assessment:

Under the IMF’s safeguards assessment policy, the NBC was subject to a full safeguards assessment with respect to a possible successor PRGF arrangement. The assessment was completed in March 2004; it identified certain weaknesses, mostly in the area of internal audit and control and made appropriate recommendations. A 2009 voluntary update assessment is in progress.

IX. Exchange Rate Arrangement and Payments System:

Cambodia’s exchange regime is classified as floating. 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.

X. Article IV Consultation:

Cambodia is subject to the provisions on consultation cycles approved on July 15, 2002. The last Article IV consultation discussions were held in Phnom Penh during October 23–November 7, 2008. The Executive Board discussed the staff report (CR/09/47) and concluded the consultation on January 16, 2009.

XI. Technical Assistance:

Technical assistance is currently focused on bank supervision, monetary operations, public financial management, customs administration, and macro-financial statistics. Delivery is through a resident advisor at the NBC, peripatetic experts, and short-term visits from headquarters.

XI. Resident Representative:

The resident representative office was closed in October 1997 and re-opened in October 1999. Mr. John Nelmes, the current Resident Representative, assumed the post in November 2005.

Annex II. Cambodia: Relations with the World Bank Group1

(As of October 2009)

I. Overview

The World Bank Group’s 2005–08 Country Assistance Strategy (CAS) stresses the need to improve governance in order to maximize the impact of development efforts. The CAS activities are intended to contribute to six objectives, which are clustered under two over-arching pillars. In May 2008, the CAS period was extended until 2011 so that the World Bank and other development partners could better align their support around the next National Strategic Development Plan (NSDP). The approach and objectives of the original CAS will be maintained throughout the extended CAS period.

Activities under Pillar 1 are intended to help implement improvements in governance that are needed if Cambodia is to meet the Cambodia Millennium Development Goals (CMDGs). To this end, the CAS establishes four objectives: (i) promote private sector development for poverty reduction; (ii) improve natural resources management; (iii) improve service delivery and public financial management; and (iv) support decentralization and promote citizens’ partnerships for better governance. These four objectives were chosen because of their importance for growth and poverty reduction and the strong ownership and leadership from the Royal Government of Cambodia (RGC). The selection was also informed by lessons from successes and failures in past strategies, and by the comparative advantage of development partners.

Pillar 2 of the CAS allocates World Bank resources to supporting the strategy development and investments needed to attain the CMDGs. To these ends, the CAS has two other objectives. First, the Bank Group will encourage the emergence of poverty-focused approaches in the formulation and implementation of public policy by supporting the NSDP 2006–10. Second, where there are clear gaps in critical infrastructure and human development sub-sectors, the Bank Group will support the emergence of a nationally-owned vision and strategy through the provision of analytical and investment services.

II. Pillar 1: Removing the Governance Constraints to Attaining the CMDGs

A. Private Sector Development (PSD)

Country Progress: Progress in this area has been mixed. On the trade facilitation front, there has been steady movement toward a customs automation program (ASYCUDA), with adoption of the Single Administrative Document (SAD) import/export declaration format and a pilot test of the automated customs procedures, which commenced in Sihanoukville in May 2008 (with nationwide roll-out scheduled in 2009). The Law on Customs, which is instrumental to customs reforms and to the implementation of ASYCUDA, was passed by the National Assembly in 2007. A risk management strategy has been adopted and is being implemented. Some progress has also been made on developing Special Economic Zones. With respect to improving the legal framework for investment and PSD, the Law on Commercial Arbitration and the Law on Concessions were passed by the National Assembly in March 2006 and September 2007, respectively, but implementation of these laws has lagged.

Role of the World Bank Group: The focus of the Bank Group’s PSD program in Cambodia is on supporting investment climate development through trade facilitation and improving the legal framework for investment. Policy reforms in both of these areas have been supported through the first in the series of Poverty Reduction and Growth Operations (PRGO) approved in July 2007. The 2005 Trade Facilitation and Competitiveness Project is helping improve Cambodia’s competitiveness by streamlining import/export formalities and reducing the costs of trade-related activities. The IFC’s Mekong PSD Facility (MPDF) prepared the Cambodian Provincial Business Environment Scorecards in 10 provinces, and the Bank Group has recently started a new Investment Climate Assessment (ICA) to monitor results since the 2004 ICA, identify new issues, and design future support. The Bank Group has also led the Technical Working Group (TWG) on PSD, supported the Government/Private Sector Forum, and participated actively in the dialogue on private sector issues among the RGC, donors, and private sector.

B. Natural Resources Management (NRM)

Country Progress: Progress in this area has been satisfactory, but a number of concerns remain. Subdecrees on State Land Management and on Economic Land Concessions (ELCs) have been adopted, including provisions for reviewing and canceling nonperforming economic land concessions and assigning the land for use as social land concessions for the poor. The RGC has distributed more than 800,000 titles and has also started a dialogue on titling of communally-owned land by indigenous people. Actions were also taken to strengthen systems for forestry management, including community-based forest activities, with the RGC recently issuing a new Protected Areas Law to provide greater clarity on institutional roles, responsibilities, and obligations. However, transparency in the issuance of ELCs still needs to be improved, and the social land concessions program needs to be accelerated. Implementation of the laws governing access and title to natural resources has also been slow, and governance weaknesses in the forestry sector are still a major concern to all stakeholders.

Role of the World Bank Group: To better integrate its efforts across land, forestry, and biodiversity conservation, the World Bank has developed an NRM framework that seeks to summarize the main challenges and required actions to move the overall agenda forward. This framework has been used in the Bank’s engagement with the TWGs on land, agriculture, poverty, environment, and water. Policy reforms in NRM are being supported through additional analytical and advisory activities (AAA) (including an agrarian structures study and an environment monitor), the PRGOs, and a range of investment and technical support operations. A Japan Social Development Fund Grant has been mobilized to foster NGO, local community, and RGC capacity to expand community forestry activities. Finally, in 2008, the Land Allocation for Social and Economic Development project was adopted to support the implementation of the RGC’s Social Land Concession strategy.

C. Public Financial Management (PFM)

Country Progress: Progress in this area has been satisfactory. Good progress has been made in implementing improved arrangements for budget formulation, budget classification, cash and bank account management, financial control, and transaction management. Procurement responsibility has been increasingly deconcentrated to line agencies, and an improved procurement subdecree and the supporting implementing rules and regulations have been adopted, incorporating numerous measures for increasing competition, transparency, and accountability in the procurement process. This has contributed to a strengthening of the overall PFM system, with the latest indicators showing aggregate actual expenditures to be within 5 percent of the budget, revenues continuing to grow (from 10 percent in FY2009 to an estimated 12 percent of GDP in FY2008), and arrears being largely eliminated. An innovative merit-based pay initiative (MBPI) was implemented in the Ministry of Economy and Finance to tackle the issues of civil service incentives, performance, and capacity. This system is now being extended progressively to all development partner-financed strategic reforms with a view to eliminating current distortionary salary supplement schemes, harmonizing RGC and partner approaches to incentives, and beginning to address the broader needs for civil service reform.

Role of World Bank Group: The World Bank has worked closely with the RGC and helped coordinate the 13 development partners in the TWG on PFM in the design and implementation of the RGC’s PFM Reform Program (PFMRP). The Bank has also supported the program through the PRGO as well as the PFM Accountability Project. The PFMRP is the first operation to support a sector-wide approach in Cambodia and has been recognized as a model of aid effectiveness globally. The Bank has also initiated a dialogue on oil revenue management, engaged civil society in the dialogue on PFM, and assisted the RGC in adopting and extending the MBPI. Additional analytical and advisory activities on public expenditure tracking surveys (PETS) in education and health sectors as well as civil service reform for teachers have been completed, and grants from trust funds are supporting strengthened National Assembly oversight of the budget.

D. Decentralization and Accountability

Country Progress: Progress in this area has been considerable. In line with the goal of decentralizing resources to local government units, average funds to communes/sangkats are projected to double by 2010. A second round of commune/sangkat council elections in 2007 has strengthened the foundation for enhanced accountability at the local level. The Ministry of Interior has successfully piloted “One Window Service” and a District Ombudsman’s office to enhance local governance. After some delay, the National Assembly adopted the Organic Laws on Decentralization and Deconcentration in April 2008. However, progress on improving access to information, including drafting of an access to information law, has been delayed, and civil society involvement in policy-making processes is developing slowly, as there is still insufficient constructive engagement with the RGC.

Role of the World Bank Group: The Bank has provided substantial support for decentralization through the Rural Investment and Local Governance Project. The Bank has also conducted a series of studies on justice for the poor, as well as a village level and dispute resolution study. In addition, it has provided advice through the TWG on the RGC’s Decentralization Policy and Strategy and mobilized grant finance to support government-civil society consultations on the decentralization strategy as well as to build the capacity of civil society on social accountability.

III. Pillar 2: Supporting Strategy and Investments to Attain the CMDGs

A. Formulation and Implementation of the NSDP, 2006–10

Country Progress: Progress toward this objective has been impressive. The RGC adopted the NSDP in 2006, replacing previous donor-driven plans with a single national development strategy. The TWG for Planning and Poverty Reduction provides a forum for regular dialogue between the RGC, development partners, and civil society on the implementation of the NSDP. Over the last two years, the Ministry of Planning (MoP) has developed (with support from the TWG) a strategic plan to refocus the ministry and help build its capacity to coordinate the implementation, monitoring, and evaluation of the NSDP. The TWG has also provided the forum for shifting external support toward a Ministry-wide, program-based approach, by which development partners supporting the MoP will coordinate their assistance behind the NSDP. On gender equality, there have also been improvements, including an increase in female representation in Commune Councils from 8 percent to 15 percent following the 2007 elections.

Role of the World Bank Group: The Bank, together with other development partners, has provided technical and financial support to the MoP for the formulation and implementation of the NSDP, with the Bank and UNDP serving as development partner co-facilitators of the TWG. In addition to direct support to RGC institutions and processes related to the NSDP, the Bank has helped to improve the knowledge base for policymakers and other stakeholders through the 2006 Poverty Assessment and the 2007 Sharing Growth: Equity and Development Report. The Bank has also provided support to the Ministry of Women’s and Veterans’ Affairs through an Institutional Development Fund grant, which funded a Gender Budgeting Project, as well as a number of smaller stand-alone grants for various outreach, training, and advocacy activities, including study tours for women in leadership, a regional workshop on mainstreaming gender in aid effectiveness, and local level dissemination activities.

B. Analytical and Investment Support for Achieving the CMDGs–Human Development and Infrastructure

Country Progress: Progress toward CAS outcomes has been impressive. In both the social and infrastructure sectors, significant progress has been made toward government-owned strategies around which donors can coordinate their financial and technical support. Improvements have also been made in most human development outcomes such as infant mortality rate, fertility rate, HIV prevalence rates, and school enrollment rates. There has been greater access to and utilization of health, education, and infrastructure services, and better targeting of health and education subsidies. More resources have been allocated to interventions in priority sectors, such as to reducing child and maternal mortality. Access to education and health, including by disadvantaged/vulnerable communities, has expanded, and the perception of service delivery in health and education among users of these services has improved. Nevertheless, other indicators such as maternal mortality or drop-out rates are lagging.

Role of the World Bank Group: The World Bank has continued to provide support for the development and implementation of effective strategies in the social sectors through the ongoing Health Sector Support and Education Sector Support Projects, as well as through participation in the TWGs. In the health sector, a major step toward a sector-wide approach was taken in 2008 to support the new RGC health sector strategy in partnership with AusAid, DFID, France, UNFPA, and UNICEF. In the education sector, support from the Education For All Fast Track Initiative Catalytic Fund was approved in 2008. As mentioned previously, the Bank has also undertaken PETS in health and education to promote PFM reforms in these sectors, and has supported additional analytical work in education.

In infrastructure, the Bank has helped in the development of sub-sector strategies through a range of AAA (Energy Sector Strategy Review, Transport Sector Update, Implementation Strategy for Urban Water Supply Policy, and briefing notes on oil and gas sector policy issues) as well as through participation in the TWG. The Bank has also engaged in a number of investment projects that have had a high development impact for the intended beneficiaries.

IV. Lending Operations and Non-lending Instruments

Proactive portfolio management continues to be a very high priority for the Bank Group. Following the 2004–05 Fiduciary Review (carried out in partnership with the RGC), the World Bank’s Institutional Integrity Department (INT) undertook separate investigations in 2005–06. The INT investigations substantiated allegations of corruption, collusion, and fraudulent practices on several contracts under seven projects for which “misprocurement” was declared in June 2006. As a result, the Bank temporarily suspended disbursements under three projects and established action plans for the concerned government agencies to execute in order to lift the suspensions.2 These action plans were completed in January 2007, and the Bank lifted the suspensions on all three projects in February 2007.

The RGC and the Bank have established a number of preventive and oversight measures to mitigate fiduciary risks in Bank-financed projects. One important measure has been the use of anti-corruption action plans knowing Good Governance Frameworks (GGFs). The GGFs—adopted for all ongoing and future Bank-financed projects—include measures to strengthen procurement procedures, financial management processes, staff conduct, complaint mechanisms, disclosure, and internal controls. Early implementation reviews of the GGFs indicate an increasing level of implementation during this initial period. Another important measure is the use of an International Procurement Agent (IPA) since December 2007 for all Bank-financed projects. Finally, the Bank is also providing technical support to the RGC to reinforce its own ability to identify and remedy fraud and corruption problems.

The disbursement ratio in FY09—at 16.1 percent—was low mainly due to procurement delays as a result of the IPA.

Nonlending instruments and operations (credits and grants) are described in Tables 1 and 2.

Table 1.Cambodia: Active IDA Projects(As of October 5, 2009)
ProjectCommitted (USD)Approval DateUndisbursed Balance (USD)
Road Asset Management Project30,000,000.0020-May-0828,817,013.52
Cambodia Second Health Sector Support Program30,000,000.0019-Jun-0827,563,123.25
Land Allocation for Social and Economic Development11,500,000.0020-May-089,738,909.31
Avian and Human Influenza Control and Preparedness Emergency Project6,000,000.0024-Mar-085,244,364.51
GMS Power Trade (Cambodia) Project18,500,000.0005-Jun-0718,608,165.85
Cambodia Public Financial Management and Accountability14,000,000.0027-Jun-0611,602,267.46
Cambodia Trade Facilitation and Competitiveness10,000,000.0002-Jun-056,178,449.75
Cambodia Education Sector Support28,000,000.0012-May-058,582,303.75
Rural Electrification and Transmission Project40,000,000.0016-Dec-0323,083,111.90
Provincial and Rural Infrastructure Project20,000,000.0011-Sep-036,520,703.49
Provincial and Peri-Urban Water and Sanitation Project19,900,000.0022-Apr-039,045,791.00
Rural Investment And Local Governance Project36,250,000.0026-Jul-0719,289,320.91
Health Sector Support Project27,000,000.0019-Dec-026,571,386.50
Demand for Good Governance20,000,00002-Dec-0819,602,554.45
Land Management and Administration Project24,300,000.0026-Feb-028,930,990.59
Table 2.Cambodia: World Bank’s Main Non-Lending Services(Recently completed and ongoing)
IssueInstruments
EnvironmentCambodia Environment Monitor (2008), Natural Resource Management and Forestry (2008).
GenderCambodia Gender Assessment (2008), Gender Mainstreaming (2009).
Human DevelopmentDemand Side Incentives in Education Impact Evaluation (ongoing), Civil Service Reform for Teachers, Social Protection Policy Note (2006), Child Labor Study (2006), Health Sector Study, Education Fast Track Initiative (2008), Scholarship Program (2009).
InfrastructureUrban Water and Sanitation Strategy (2006); Oil and Gas Sector Policy Notes (2009).
Legal and Judicial ReformJustice for the Poor Phase One Study (2006); Justice for the Poor Phase Two (2008).
Poverty Reduction and EconomicsPoverty Reduction Strategy Trust Funds (ongoing), Moving Out of Poverty Study (2007), National Poverty Assessment (2006), Cambodia Equity Report (2007), and Sources of Growth (2008), Poverty Profile (2009).
Private Sector Development and TradePPIAF Grant to develop an interim regulatory framework (ongoing). FIAS report on FDI (2001), Integration and Competitiveness Study (2002), Investment Climate Assessment (2008).
Public Financial ManagementGrant to assist the National Audit Authority (ongoing), Country Procurement Assessment Report (2004), Fiduciary Review (2005), Public Expenditure Tracking Survey—Education (2005), Public Expenditure Tracking Survey—Health (2007), ROSC on private sector accounting (2007).
Rural and AgriculturePSIA on Social Land Concessions (2004), Rural Sector Strategy Note (2005), Land Taxation and Valuation Study (2005), and Land Policy and Strategy (2007), Cambodia Agrarian Structure (2008).

Annex III. Cambodia: Relations with the Asian Development Bank

(As of September 2009)

From 1992 through September 30, 2009, the Asian Development Bank (AsDB) approved $1,145.8 million including 45 loan projects of $1,007.7 million with low interest, and 11 Asian Development Fund (ADF) grants of $138.1 million ($42 million in 2005; $7.8 million in 2006; $37 million in 2007; $30 million in 2008; and $21 million in 2009) to Cambodia for structural reform programs. To date, 31 loan projects for a total of $711.3 million have been completed.

The sector composition and loan/grant amounts of the remaining active portfolio as of September 30, 2009 are: (i) agriculture and natural resources $72.7 million; (ii) education $52.1 million; (iii) energy $64.3 million; (iv) health, nutrition, and social protection $29.0 million; (v) industry and trade $15.6 million; (vi) law, economic management, and public policy $20.6 million; (vii) multi-sector $20.0 million; (viii) transport and communication $121.3 million; and (ix) water supply, sanitation, and waste management $39.0 million.

The AsDB’s overarching goal in Cambodia is sustainable poverty reduction. The AsDB’s Country Strategy and Program (CSP 2005–09) mid-term review (MTR), finalized in August 2007, concluded that the strategic thrust of the AsDB in Cambodia remains appropriately targeted on poverty reduction through broad-based private sector-led growth, inclusive social development, and stronger governance for sustainable development. The AsDB’s proposed Country Operations Business Plan 2008–10 (COBP) strongly focuses on the priority areas of agricultural and rural development, private sector development, governance and capacity development, and the Greater Mekong Subregion (GMS). Interventions in agricultural and rural development focus around the Tonle Sap basin area and are geared to improving livelihoods of the poor through management of water resources and irrigation assets, as well as agriculture extension services and crop diversification; expanding the connectivity internally between rural roads and the provincial and national network, and externally with emerging subregional transport corridors; fostering the development of smallholder agricultural producers; and widening access for the poorest to rural water supply and sanitation while strengthening local community management capacity.

In the area of private sector development, the AsDB supports improvements in competitiveness by helping reduce border-related costs and distortions; enhancing domestic and external trade facilitation, including through promoting compliance with sanitary and phytosanitary standards; and fostering improved and cheaper access to information and communication technology (ICT). Later interventions would be more focused on improving the trade facilitation and logistics links to the subregion as systems and procedures become more developed and integrated. Supporting financial sector interventions are aimed at improving financial intermediation, including the outreach of microfinance institutions (MFIs) and reducing the cost of finance in rural areas; enhancing the resilience of the financial sector; promoting good governance; and improving financial sector efficiency. Education-related interventions are aimed at enhancing technical and vocational education training to achieve a closer match between the skills of a rapidly growing and young rural labor force and emerging employment opportunities. There is also a gradual increase in private sector operations, beginning with interventions to expand trade and access to rural finance, including proposed nonrecourse interventions by the AsDB’s Private Sector Department to guarantee trade financing, equity investment in one or more private funds to help finance them with committed capital, and extended MFI reach in rural areas. Other infrastructure loans or investment opportunities are being sought, including in the areas of power transmission.

With respect to governance and capacity building, the COBP includes a long-term programmatic approach to public financial management (PFM) reform with interventions to underpin the rolling out of PFM to rural development line ministries (support to financial management and reporting and development of internal audit capacities in these ministries) and to strengthen of the audit capacity of the National Audit Authority. At the same time, the AsDB will also promote good governance through support to the government-led decentralization and deconcentration reform, namely through support to functional assignments linked to fiscal needs, capacity development for decentralized institutions, and a provision for decentralized infrastructure services deliveries. AsDB interventions in PFM for rural development and AsDB sector interventions will reinforce decentralization and deconcentration reform particularly in functional assignments and expenditures responsibilities.

AsDB: Loan/Grant Commitments and Disbursements to Cambodia, 1992–2009(In millions of U.S. dollars, as of end-September 2009)
Loan/Grant ApprovalsContract Awards/CommitmentDisbursements
1199267.70.00.0
219930.04.45.4
3199428.235.912.2
4199545.128.135.9
51996105.015.332.1
619970.041.510.7
7199840.029.129.3
8199988.017.026.2
92000109.6114.450.8
10200175.240.748.3
112002116.564.478.9
12200398.361.973.3
13200465.062.476.7
142005152.096.484.5
152006269.844.755.8
162007372.185.762.1
172008484.1107.796.3
182009 (Projected)5154.555.494.7
192010 (Projected)6157.8
TOTAL:1,428.8905.0873.2

$10 million loans and $42 million grants approved in 2005.

$62 million loans and $7.8 million grants approved in 2006.

$35 million loans (including $8 million to private sector) and $37 million grants approved in 2007.

$53.8 million loans, and $30.3 million grants approved in 2008.

Loan amount to $16.3 million and grant amount to $21 million were approved on August 24, 2009 and September 15, 2009, respectively. In addition, loans amount to $55.4 million, grants amount to $51.8 million, and one ordinary capital resources (OCR) loan amount to $10 million are expected to be approved before end-2009.

Loans amount to $97.8 million, and grants amount to $60 million are expected to be approved in 2010.

$10 million loans and $42 million grants approved in 2005.

$62 million loans and $7.8 million grants approved in 2006.

$35 million loans (including $8 million to private sector) and $37 million grants approved in 2007.

$53.8 million loans, and $30.3 million grants approved in 2008.

Loan amount to $16.3 million and grant amount to $21 million were approved on August 24, 2009 and September 15, 2009, respectively. In addition, loans amount to $55.4 million, grants amount to $51.8 million, and one ordinary capital resources (OCR) loan amount to $10 million are expected to be approved before end-2009.

Loans amount to $97.8 million, and grants amount to $60 million are expected to be approved in 2010.

Annex IV. Cambodia: Statistical Issues

As of October 26, 2009

I. Assessment of Data Adequacy for Surveillance
General: Data provision is broadly adequate for surveillance. Extensive technical assistance (TA) has been provided by the IMF, UNDP, Asian Development Bank, and World Bank, as well as from bilateral partners (namely Japan and Sweden), leading to substantial capacity improvements in compiling and reporting macroeconomic statistics. However, various shortcomings in macroeconomic data still hamper timely and comprehensive analysis.
National Accounts: The National Institute of Statistics is leading efforts to improve the consistency of national accounts statistics with the United Nations’ System of National Accounts 1993, to expand the range of annual national account aggregates, and to produce a quarterly national accounts series since June 2005, with IMF TA. However, the quality of GDP estimates remains hampered by the lack of comprehensive and reliable source data on a production and expenditure basis, in part stemming from the need to address resource constraints and improve data collection techniques.

Price statistics: A new consumer price index (CPI) series was introduced starting in January 2009. However, geographical coverage of the series is limited to Phnom Penh. Statistics Sweden is currently providing TA on price statistics, including on compiling a production price index (PPI).
Government finance statistics: The Ministry of Finance and Economy began implementing reforms to the government accounting system and budgetary nomenclature in 2007 based on the Government Finance Statistics Manual (GFSM) 2001, with IMF TA. In addition, several STA missions have assisted with GFS compilation procedures within the GSFM 2001 framework. IMF TA in April 2008 assisted with establishing a bridge between the government’s new chart of accounts (COA) and the GSFM 2001 classifications so that accounting records can be used as source data in compiling GFS. However, use and coverage of the COA has been limited and not fully integrated to activities such as the disbursement of external loans and grants, the government’s budget reserve fund, and capital expenditures.
Monetary and financial statistics: The National Bank of Cambodia (NBC) compiles the sectoral balance sheet and survey for the central bank and other depository institutions in accordance with the IMF’s Monetary and Financial Statistics Manual. Since August 2005, the NBC has reported monthly monetary and financial statistics to STA using the Standardized Report Forms. The NBC compiles monthly financial soundness indicators, but data are published irregularly.
External sector statistics: Despite recent improvements, more work is needed to improve balance of payments statistics. Customs data have substantial coverage and valuation problems arising from the use of reference prices and limited recording of nondutiable imports, underreporting of re-exports, and weaknesses in customs controls. Enterprise transactions, such as payment for imported services, income payments, and portfolio investment abroad are excluded or underreported. Foreign direct investment, which is believed to be large, relies excessively on approvals. Gaps exist in external debt statistics, in particular on the stock of public and publicly-guaranteed debt by maturity, on bilateral donor disbursements, and on external debt service.
II. Data Standards and Quality
Cambodia participates in the IMF’s General Data Dissemination System (GDDS).No data ROSC are available.
III. Reporting to STA (Optional)
Cambodia sends regular data reports to STA for publication.
Cambodia: Table of Common Indicators Required for Surveillance(As of October 26, 2009)
Date of latest ObservationDate ReceivedFrequency of Data1Frequency of Reporting1Frequency of Publication1
Exchange RatesOct. 2009Oct. 2009DDW
International Reserve Assets and Reserve Liabilities of the Monetary Authorities2Sep. 2009Sep. 2009BiweeklyBiweekly, 4 week lagN/A
Reserve/Base MoneyAug. 2009Sep. 2009MM, 4–6 week delayM
Broad MoneyAug. 2009Sep. 2009MM, 4–6 week delayM
Central Bank Balance SheetAug. 2009Sep. 2009MM, 4–6 week delayM
Consolidated Balance Sheet of the Banking SystemAug. 2009Sep. 2009MM, 4–6 week delayM
Interest Rates3Sep. 2009Oct. 2009MM, 4–6 week lagM
Consumer Price IndexSep. 2009Oct. 2009MM, 2–4 week lagM
Revenue, Expenditure, Balance and Composition of Financing4—General Government5Aug. 2009Oct. 2009MM, 4–6 week lagM
Revenue, Expenditure, Balance and Composition of Financing4—Central GovernmentAug. 2009Oct. 2009MM, 4–6 week lagM
Stocks of Central Government and Central Government-Guaranteed Debt6Dec. 2008Sep. 2009AA, 6 month lagA
External Current Account BalanceQ2, 2009Sep. 2009QQ, 2 month lagQ
Exports and Imports of Goods and ServicesQ2, 2009Sep. 2009QQ, 2 month lagQ
GDP/GNPDec. 2008Jun. 2009AA, 6 month lagA
Gross External DebtJun. 2009Sep. 2009MM, 4–6 month lagA
International Investment Position7Aug. 2009Sep. 2009MQ, 2 month lagM

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); and Not Available (N/A).

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

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.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); and Not Available (N/A).

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

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.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

1/Prepared by World Bank staff.
2/Suspension is a remedial measure available under all World Bank legal agreements. It can be exercised by the Bank in a number of situations, including when the Borrower is not fulfilling its obligations under the legal agreement. Suspension entails a temporary freeze on the Bank’s financing of implementation, but does not mean that the Bank withdraws from the project. Rather, the Bank steps up its supervision, dialogue, and other activities to help the government in its efforts to meet the conditions for lifting the suspension.

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