Abel Garamhegyi, State Secretary of Hungary’s Finance Minstry, led government delegation and businessmen to Cambodia said at the Ministry of Finance on Monday that the Hungarian government makes discussion to provide a US$ 50 million in soft loans to Cambodian government in order to help build infrastructure, and irrigation system and to promote agricultural productivity.
Before Hungary issues loans, Cambodian government must first settle a $433,000 debt owed to Hungry since the 1980. And the agreement settling the debt will be signed May 27 at an Asean-European Union Summit.
Garamhegyi was quoted by the Phnom Penh Post as saying that “We want to focus on those areas in which Hungary has great expertise and advantages, and we have to negotiate those projects that Hungary can bring [to ensure] the most added value for Cambodia,” he added. “We hope to sign the agreement this year. The term of this type of loan is usually 25 or 30 years with a zero interest rate.”
He said that the $50 million in soft loans will focus on several areas, including infrastructure for water-related industries such as water purification, agriculture projects including fisheries and irrigation projects, reported The Cambodia Daily.
“If we can sign this agreement, it will open the possibility that Hungary will implement other financial programs and will pave the way for a US$100 million loan for research and development facilities,” said Garamhegyi quoted by The Phnom Penh Post.