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| Loan Name | Subprogram 3 Financial Sector Program II | |||
| Country | Cambodia | |||
| Project Number | 34389- 03 | |||
| Fund Source/Amount[Proposed] |
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| Thematic Classification |
Economic growth
Governance |
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| Project Rationale | With a rapidly growing comercial economy that requires a sound financial system to sustain its rate of growth, the Government, if it is to achieve long-term sustainable economic growth and poverty reduction, needs to develop the financial sector by mobilizing financial resources, channeling them to productive investments, and managing the inherent risks. The 1997 Asian financial crisis and the 2008 global financial crisis provided many examples of the devastating impact that financial crisis can have on countries, wiping out several years of growth within a very short time. Thus, to promote economic growth, reduce poverty, and help countries prepare to mitigate shocks emanating from external financial crisis, the ADB plays an important role in supporting financial sector development in its client countries, including Cambodia. | |||
| Impact | To promote the development of a sound, market-based financial system to enhance resource mobilization and support sustainable economic growth. | |||
| Outcome | A growing, resilient, and efficient financial system. | |||
| Outputs | Improve confidence and financial intermediation by; (i) NBC adopting the updated roadmap for upgrading the payment system and implement the 2009 activities, (ii) NBC issuing a regulation covering interbank repurchase agreement for valuable papers, (iii) NBC introducing regulations to facilitate MFIs access to voluntary deposits from the general public and enhance the provision of credits to MFIs by domestic commercial banks; Maintain stability in the financial system by (iv) NBC submitting the amendment law on banking and financial institutions to the Council of Ministers, (v) NBC requiring banks to comply with applicable Basel I core principles for effective bank supervision, (vi) NBC developing a code of conduct for registered moneychangers, (vii) MOC submitting the draft commercial contract law the Council of Ministers; Promote good governance by (viii) MEF submitting the draft revised insurance law to the CoM, (ix) MOC establishing the national arbitration center with appropriate rules and procedures, (x) MEF continuing to provide 70 CPA scholarships annually; and Enhance efficiency by (xi) NBC installing the integrated computer systems for its key operating functions and undertake relevant training of staff. | |||
| Geographical Location | National | |||
Safeguard Categories
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| Environment | C | |||
| Resettlement | C | |||
| Indigenous People | C | |||
| Summary of Environmental and Social Issues | ||||
| Social Aspects | Not applicable | |||
| Environmental Aspects | Not applicable | |||
| Stakeholder Participation and Consultation | ||||
| During Project Design | During initial design and implementation | |||
| Procurement | ||||
| Consulting Services | - | |||
| Civil Works/Goods | The loan proceeds will be used to finance the full foreign exchange costs (excluding local duties and taxes) of items produced and procured in ADB member countries, excluding ineligible items and imports financed by other bilateral and multilateral sources. All procurement of goods and services produced in, and originating from, ADB member countries, will be made wtih due consideration to economy and efficiency, in accordance with standard public procedures in Cambodia and normal private sector commercial practicies acceptable to ADB. In accordance with the provisions of ADB's Simplification of Disbursement Procedures and Related Requirements for Program Loans (1998), the loan proceeds will be disbursed to the Kingdom of Cambodia as the Borrower. | |||
| Responsible ADB Officer |
Samiuela T. Tukuafu |
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| Responsible ADB Department |
Southeast Asia Department |
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| Responsible ADB Division |
Financial Sector, Public Management and Trade Division, SERD |
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| Executing Agencies |
National Bank of Cambodia |
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| Timetable | ||||
| Concept Clearance | 06 Dec 2007 | |||
| Fact-finding | 21 Apr 2009 to 29 Apr 2009 | |||
| Appraisal | 02 Aug 2009 to 08 Aug 2009 | |||
| Board Approval | 26 Nov 2009 | |||
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