Cambodia signed agreements for $460.26 million in new concessional loans during the first half of 2026, a 134% increase from the same period last year, as the government continued using development financing for priority public investment projects.
The increase in new borrowing came alongside higher debt-service payments and nearly $516 million in government securities issuance. Despite the rise in financing commitments, the Ministry of Economy and Finance’s (MEF) preliminary 2026 assessment found that Cambodia’s public debt remains sustainable and at low risk of debt distress.
The figures were published in Volume 31 of the Cambodia Public Debt Statistical Bulletin, covering the government's debt position through the end of June 2026.
Key Facts
| Indicator | H1 2026 |
|---|---|
| New concessional loans signed | $460.26 million |
| Year-on-year increase | 134% |
| Total public debt stock | $13.56 billion |
| Public debt as share of GDP | 19.2% |
| External debt | $12.83 billion |
| Domestic debt | $735.7 million |
| Government securities issued | $515.77 million |
| Existing loan disbursements | $401.93 million |
| Debt-service payments | $389.46 million |
| Present value of external public and publicly guaranteed debt | 17.9% of GDP |
| External debt distress threshold cited by MEF | 40% of GDP |
New Loans Rise Sharply in First Half
The Cambodian government signed $460.26 million worth of new concessional loan agreements during the first six months of 2026.
The amount was 134% higher year-on-year and represented approximately 19% of the annual legal ceiling of SDR 2.25 billion.
Of the new financing, 57% came from bilateral development partners, while 43% came from multilateral development partners.
The loans were described by the MEF as highly concessional, with an average grant element of about 41.8%.
The financing is designated for priority public investment projects intended to support long-term sustainable growth and productivity.
Public Debt Reaches $13.56 Billion
Cambodia's total public debt stock reached $13.56 billion at the end of June 2026, including old and rescheduled debt.
External debt continued to make up the overwhelming majority of the debt stock, accounting for approximately 95%, or $12.83 billion.
Domestic debt represented about 5%, equivalent to approximately $735.7 million.
Cambodia’s Public Debt Structure
| Category | Amount | Share |
|---|---|---|
| External public debt | $12.83 billion | ~95% |
| Domestic public debt | $735.7 million | ~5% |
| Total public debt | $13.56 billion | 100% |
Within external debt, 58% came from bilateral development partners and 42% from multilateral development partners.
The present value of Cambodia's total public debt was equivalent to 19.2% of GDP, according to the MEF report.
Government Securities Nearly Reach Annual Ceiling
In addition to concessional loans, the government issued $515.77 million in securities during H1 2026.
That amount represented nearly 99% of the annual legal ceiling of approximately $517 million.
The securities were issued mainly in Cambodian riel, alongside US dollar-denominated securities.
The government used the proceeds to finance priority public investments and help maintain budget balance.
This means Cambodia's financing strategy during the first half of the year relied on both concessional external borrowing and domestic capital-market instruments.
Existing Loan Disbursements Reach $401.93 Million
Disbursements from previously approved concessional loans reached $401.93 million during the first six months of 2026.
That represented a 4% increase compared with the same period in 2025.
Infrastructure projects accounted for the largest share, receiving 82% of total disbursements, while the remaining 18% went to other priority sectors.
H1 2026 Loan Flows
| Financing activity | Amount | Change |
|---|---|---|
| New concessional loans signed | $460.26 million | +134% |
| Existing concessional loan disbursements | $401.93 million | +4% |
| Government securities issued | $515.77 million | — |
The distinction between new loan commitments and actual disbursements is important: signing a loan agreement does not mean the full amount has already been drawn or spent.
Debt-Service Payments Rise 31%
Cambodia's debt-service payments increased significantly during the first half of 2026.
Total debt-service payments reached $389.46 million, up 31% year-on-year.
Of this amount, $358.07 million was related to external debt, comprising:
$288.36 million in principal repayments
$69.71 million in interest and fees
Domestic debt-service payments amounted to $31.39 million, including:
$26.40 million in principal
$4.98 million in interest and fees
H1 2026 Debt-Service Breakdown
| Debt service | Amount |
|---|---|
| Total debt service | $389.46 million |
| External debt service | $358.07 million |
| External principal | $288.36 million |
| External interest and fees | $69.71 million |
| Domestic debt service | $31.39 million |
| Domestic principal | $26.40 million |
| Domestic interest | $4.98 million |
The increase reflects higher principal repayments as well as interest and associated fees.
MEF Assessment Finds Low Risk of Debt Distress
Despite the increase in new loan commitments and debt-service payments, the MEF's preliminary 2026 debt sustainability assessment found Cambodia's public debt remains sustainable and at low risk of debt distress.
The present value of public and publicly guaranteed external debt was 17.9% of GDP, compared with the 40% threshold cited in the assessment.
Other debt indicators, including measures against exports and government revenue, also remained within established limits.
The assessment therefore indicates that the increase in borrowing during the first half of 2026 has not, according to the MEF's preliminary analysis, pushed Cambodia outside its established debt sustainability parameters.
Government Lending Accounts Reach About $3 Billion
The government's lending accounts stood at approximately $3 billion at the end of the second quarter.
New lending agreements reached $261.73 million during H1, an increase of 112% year-on-year.
Disbursements to debtors increased 31% to $122.36 million.
Meanwhile, debt-service payments collected from government borrowers reached $90.05 million, up 19% from the first half of 2025.
Government Lending Activity
| Indicator | H1 2026 | Change |
|---|---|---|
| Government lending accounts | ~$3 billion | — |
| New lending agreements | $261.73 million | +112% |
| Disbursements to debtors | $122.36 million | +31% |
| Debt-service collected | $90.05 million | +19% |
Analyst Urges Caution Over Rising Borrowing
Royal Academy of Cambodia policy analyst Sam Seun said Cambodia has a relatively strong ability to repay public debt compared with some neighbouring countries, while cautioning against excessive reliance on borrowing.
He said loans can support development when they are used carefully, effectively and transparently for productive investment.
Seun also called for stronger domestic revenue mobilisation, including tax and non-tax revenue, alongside greater transparency and more effective public spending.
His concern is less about the size of the $460.26 million in new commitments alone and more about the cumulative effect of additional borrowing over time.
He cautioned that continued borrowing without a long-term strategy to reduce dependence on loans could create repayment challenges in the future.
Debt Management and Domestic Revenue Remain Important
The first-half figures highlight two sides of Cambodia's public-finance strategy.
On one side, concessional borrowing provides financing for infrastructure and other priority public investments that may support long-term economic development.
On the other, increasing debt-service obligations mean the government needs sufficient revenue and economic growth to meet future repayment commitments.
This makes domestic revenue collection and the effectiveness of public spending important components of long-term debt management.
The analyst also emphasised governance and transparency in the use of development financing, particularly where concessional loans are linked to international development partnerships.
Cambodia’s Debt Compared With Regional Economies
The source report also compared Cambodia's public debt burden with several neighbouring economies.
Thailand's public debt stood at 67.45% of GDP in July 2026, while Vietnam's public debt was estimated at around 34% of GDP at the end of 2025.
Laos' public and publicly guaranteed debt stood at approximately 94% of GDP at the end of 2024.
These figures provide regional context, although the debt structures, fiscal systems, economic conditions and measurement periods differ between countries and should not be treated as directly equivalent measures of fiscal risk.
Angkor Times Analysis
Cambodia's first-half debt figures illustrate a financial strategy that combines concessional development loans, domestic securities and government lending to support public investment and fiscal management.
The headline figure is the 134% increase in new concessional loans to $460.26 million. However, the more important consideration is how the financing is used and whether the resulting investments generate sufficient economic and social returns over time.
The MEF's preliminary assessment provides an important counterpoint to the increase in borrowing: public debt remained at 19.2% of GDP in present-value terms, while public and publicly guaranteed external debt stood at 17.9% of GDP, below the 40% threshold cited in the assessment.
At the same time, debt-service payments rose 31% to $389.46 million. This demonstrates why debt sustainability cannot be assessed solely by looking at the current debt-to-GDP ratio. Future repayment schedules, revenue generation, economic growth, borrowing terms and the productivity of financed projects all matter.
The composition of new borrowing is also relevant. With 57% of new financing coming from bilateral development partners and 43% from multilateral partners, and an average grant element of 41.8%, the loans described by the MEF are substantially concessional rather than purely commercial borrowing.
The government's continued reliance on concessional financing therefore remains linked to the quality of public investment. Infrastructure accounted for 82% of existing concessional loan disbursements in H1, making project selection, implementation and economic returns particularly important.
The figures also reinforce the importance of domestic revenue mobilisation. Stronger tax and non-tax revenue can provide greater capacity to finance development while reducing pressure to rely on additional borrowing over the longer term.
Frequently Asked Questions
How much new concessional debt did Cambodia sign in H1 2026?
The government signed $460.26 million in new concessional loan agreements during the first half of 2026.
How much did new loan commitments increase?
New concessional loan commitments increased 134% year-on-year compared with the first half of 2025.
What is Cambodia's total public debt?
Cambodia's public debt stock reached $13.56 billion at the end of June 2026.
How much of Cambodia's debt is external?
Approximately 95%, or $12.83 billion, was external debt.
How much did Cambodia pay in debt service?
Debt-service payments reached $389.46 million during the first half of 2026, up 31% year-on-year.
Is Cambodia's public debt considered sustainable?
The MEF's preliminary 2026 debt sustainability assessment found that Cambodia's public debt remained sustainable and at low risk of debt distress.
What is Cambodia's external debt ratio compared with the cited threshold?
The present value of public and publicly guaranteed external debt was 17.9% of GDP, below the 40% threshold cited in the assessment.
Where are concessional loan funds mainly going?
Infrastructure projects accounted for 82% of disbursements from existing concessional loans during the first half of 2026.
Conclusion
Cambodia's new concessional loan commitments rose sharply during the first half of 2026, reaching $460.26 million, while total public debt stood at $13.56 billion at the end of June.
The increase in borrowing occurred alongside higher government securities issuance and a 31% rise in debt-service payments.
Nevertheless, the MEF's preliminary assessment continues to classify Cambodia's public debt as sustainable and at low risk of debt distress, with key debt indicators remaining below established thresholds.
The central issue for Cambodia going forward is therefore not simply the amount borrowed, but how effectively borrowed funds are converted into productive public investment and stronger economic capacity.
Maintaining concessional financing terms, strengthening domestic revenue collection, improving public-spending efficiency and ensuring transparency will remain important as Cambodia balances infrastructure and development needs with its long-term debt obligations.
Sources
- Khmer Times, “Cambodia’s new concessional loans surge 134% in H1,” September 2026.
- Cambodia Ministry of Economy and Finance, Cambodia Public Debt Statistical Bulletin, Volume 31, covering data through Q2 2026.
- Statements from Royal Academy of Cambodia policy analyst Sam Seun, as quoted by Khmer Times.