Friday, December 6, 2019

Rural Development Bank needs to have at least $ 200 million in hand to stabilize the Cambodian rice sector

The Grassroots Democratic Party (GDP) welcomes the government to allocate $ 50 million to the Rural Development Bank to stabilize Cambodia's rice sector, albeit at a modest but good start.

The Grassroots Democratic Party sees that the Rural Development Bank now needs to have at least $ 200 million to help Cambodian businesspersons in rice industry with that existing $ 50 million plus an additional $ 50 million will be allocated by the Royal Government of Cambodia to the Rural Development Bank, totaling $ 100 million. As a result, the Rural Development Bank still needs to have another $100 million.

At the same time, the Grassroots Democratic Party demands that the money be distributed transparently to the rice millers and the farming community, in rice producers with the  low-interest.
Meanwhile, the Grassroots Democratic Party also hailed the government for transforming the Rural Development Bank into a rural and agricultural development bank.


GDP's policy states in Article 16 of their Green book that the government (led by GDP) institutes a National Agricultural Credit Program to provide loans to the producing farmers' communities with the interest of only 2% per year. Communities can use the loaned capital to build agricultural collected an dried vegetable stocks, and trucks for transporting agricultural products from members.

The community also uses this the loaded capital to extend its loan to members, with the loan amount up to 25 million Riel, at a rate of 0.5% per month (6% per year) and repayment period of up to 5 years.

Source of text (in Khmer) available at: Grassroots Democratic Party, GDP  

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