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Cambodia: Staff Report for the 2018 Article IV Consultation—Informational Annex

Author(s):
International Monetary Fund. Asia and Pacific Dept
Published Date:
December 2018
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FUND RELATIONS

(As of September 30, 2018)

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 MillionPercent Quota
Quota175.00100.0
Fund holdings of currency (Holdings Rate)153.1387.50
Reserve Tranche Position21.8812.50
SDR Department:SDR MillionPercent Allocation
Net cumulative allocation83.92100.00
Holdings88.55105.52

Outstanding Purchases and Loans: None

Latest Financial Arrangements:

Amount ApprovedAmount Drawn
TypeDate of ArrangementExpiration Date(SDR Million)(SDR Million)
ECF 1/Oct. 22, 1999Feb. 28, 200358.5058.50
ECF 1/May 06, 1994Aug. 31, 199784.0042.00

Formerly PRGF.

Formerly PRGF.

Overdue Obligations and Projected Payments to the Fund 2/(SDR Million; based on existing use of resources and present holdings of SDRs):
Forthcoming
20162017201820192020
Principal
Charges/Interest0.000.000.000.00
Total0.000.000.000.00

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

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 July 12–25, 2017. The Executive Board concluded the Article IV consultation (IMF Country Report 17/325) on October 20, 2017.

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

Ms. Yong Sarah Zhou has been the IMF Resident Representative for Cambodia since July 2015.

RELATIONS WITH OTHER INTERNATIONAL FINANCIAL INSTITUTIONS

World Bank: http://www.worldbank.org/en/country/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 2018)

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, 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 statistics, several shortcomings in macroeconomic data still hamper timely and comprehensive analysis.
National accounts. Despite improvements in recent years, weaknesses remain in the quality, frequency and timeliness of national accounts data. The quality of GDP estimates remains hampered by the lack of comprehensive and reliable source data on a production and expenditure basis, in part due to resource constraints and weak data collection techniques. In November 2011, a TA mission assessed current methodologies used to compile national accounts estimates and provided support with the development of the quarterly national accounts estimates. In February 2014, another TA mission was conducted mainly to assist the National Institute of Statistics (NIS) processing the results of Cambodia’s first ever 2011 Economic Census of Cambodia (EC2011) for improving GDP estimates. The purpose of the EC2011 was not particularly focused on national accounts, hence TA concluded further improvements are needed to convert EC2011 data into national accounts data following the System of National Accounts (SNA) concepts and definitions. In February 2015, a TA mission assessed current data compilation and dissemination practices and made recommendations on these issues. NIS is currently revising sources and methods for national accounts compilation, assisted by UNESCAP and SIDA.
Price statistics. The compilation of the consumer price index (CPI) suffers from outdated basket weights and insufficient geographic coverage. An updated CPI series was introduced starting in April 2012. Geographic coverage of the series has been expanded to include Phnom Penh plus five provinces. The authorities indicated a need for assistance with developing a producer price index (PPI), but no funds have been allocated to support the compilation. The authorities have planned to update the CPI series in 2019, using 2014 as base year, updating the basket, weight, and expanding the coverage.
Government finance statistics (GFS). The Ministry of Economy and Finance (MEF) began implementing reforms to the government accounting system and budgetary nomenclature in 2007, based on the Government Finance Statistics Manual (GFSM) 2001, with the assistance of the IMF. To facilitate policy dialog, the authorities should consider shifting from the Tableau des operations financieres de l’Etat (TOFE) based on GFSM 1986 to a GFSM 2014-based budget formulation and reporting framework. Over the past three years, progress has been made, and the authorities submit annual and monthly GFSM 1986 and 2001 data for budgetary central government operations and GFSM 1986 for local government operations, both on a cash basis to the IMF’s Statistics Department. Following the recommendations of the February – March 2017 GFS mission, the MEF has started compiling annual fiscal data for consolidated general government using GFSM 2014. Going forward, the priority is to improve data compilation, namely to compile financial balance sheet, and extend institutional coverage to include data for extrabudgetary units. Next steps include: (i) improving the CoA to allow automatic compilation of GFSM 2014 summary statements and detailed tables in the Financial Management Information System (FMIS); (ii) mapping available source data on Public Administrative Establishment (PAE) to GFSM 2014 classifications; (iii) reporting to the World Bank-IMF Public Sector Debt Statistics (PSDS) database; (iv) document GFS compilation procedures and derivation tables, (v) continue to implement the action plan for the IMF Results Based Management Framework (RBM) for GFS and PSDS; and (vi) expanding institutional and data coverage to the general government as recommended during the GFS mission in March 12–16 2018.
Monetary and financial statistics. The NBC reports monetary data using the standardized reporting forms for the central bank and other depository corporations on a monthly basis. As a result of a TA mission conducted in 2017, the NBC also started reporting monetary data for other financial corporations (OFC). However, the reported data for the OFC sector covers only the specialized banks which constitutes around 1 percent of the financial sector. OFC data needs to be improved to include all OFCs (e.g. insurance companies, non-deposit taking MFIs and leasing companies).
Financial sector surveillance: The NBC reports to the IMF all core and several encouraged FSIs on a monthly frequency and with one quarter timeliness. Quality of FSIs could be further improved including through enhancements in sectoral allocation of assets and liabilities.
External sector statistics. Cambodia’s quarterly balance of payments are compiled by the NBC according to the Balance of Payments and International Investment Position Manual, sixth edition (BPM6). Data present some relevant shortcomings in terms of coverage, accuracy, and timeliness. Balance of payments and IIP are compiled relying on estimation methods. Inward foreign direct investment (FDI), a relevant component of Cambodia’s external transactions and positions present large gaps despite recent survey improvements. General Department of Customs and Excise (GDCE) produce monthly and quarterly trade data. Monthly data are regularly provided to NBC to be used to estimate balance of payments trade figures. Technical assistance has been provided under the Project on Improvement of External Sector Statistics, funded by the government of Japan. Recent progress has been made, especially in enhancing the International Transactions Reporting System (ITRS) and in conducting an DI (Direct Investment) survey. In September 2016, a TA mission on DI data collection has been conducted to assess legal framework for DI data collection and to provide guidance on determining survey population and sample survey frame. In March 2018, a TA from IMF CDOT assisted with improving data quality (coverage and estimation methods), particularly for travel, compensation of employees and workers’ remittances. In September 2018, a TA from IMF CDOT developed a new compilation file for inward FDI, simplifying the work process and streamlining the compilation for inward FDI of banks, microfinance institutions, and nonfinancial corporations. Moreover, the mission assisted with improving the estimation of freight and passenger transport.
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 26, 2018)
Date of Latest ObservationDate ReceivedFrequency of Data1Frequency of Reporting1Frequency of Publication1
Exchange Rates10/25/201810/26/2018DDW
International Reserve Assets and Reserve Liabilities of the Monetary Authorities28/201810/2018MM, 2 month lagM
Reserve/Base Money8/201810/2018MM, 2 month lagM
Broad Money8/201810/2018MM, 2 month lagM
Central Bank Balance Sheet8/201810/2018MM, 2 month lagM
Consolidated Balance Sheet of the Banking System8/201810/2018MM, 2 month lagM
Interest Rates38/201810/2018MM, 2 month lagM
(Loan and Deposit rates) Consumer Price Index9/201810/2018MM, 1-2 month lagM
Revenue, Expenditure, Balance and Composition of Financing4—General8/201810/2018MM, 1-2 month lagM
Revenue, Expenditure, Balance and Composition of Financing4—Central8/201810/2018MM, 1-2 month lagM
Stocks of Central Government and Central Government-Guaranteed Debt66/20189/2018SS, 3 month lagS
External Current Account BalanceQ1/2018Q3/2018QQ, 3-5 month lagQ
Exports and Imports of Goods and Services8/201810/2018MM, 2 month lagM
GDP/GNP20176/2018AA, 6 month lagA
Gross External Debt6/20189/2018QQ, 3 month lagQ
International Investment PositionQ2/201810/2018QQ, 4 month lagQ

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.

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.

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.

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.

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