Cambodia asks for debt forgiveness from Russia…again
We have reported before that many developing countries are under strain due to interest and repayments of loans from the major powers. In the case of Cambodia, these loans were a last ditch effort for survival at the time of internal crisis. It ran up massive debts rebuilding its military capability in a post-Khmer Rouge era. Cambodia is now seeking debt relief from some of these past burdens. Cambodia is seeking forgiveness of $1.5 billion of Soviet era loans. It will be interesting to see how forgiving Russia will be in relation to this debt, and what it demands in place of hard currency if it does.
Heng Samrin, who will visit Moscow and St Petersburg during his November 4-10 visit, is expected to meet with Sergey Mironov, chairman of the Russian federation council’s federal assembly.
CPP lawmaker Cheam Yeap said Heng Samrin plans to request the cancellation of loans used for the purchase of weapons during the 1980s. Cambodia requested debt-cancellation from Russia in 2006 and 2008, but was unsuccessful both times.
“We don’t want to remind them again, but we do not need to pay back the loan because we borrowed the money from the ex-Soviet Union [which no longer exists],” said Sam Rainsy Party lawmaker Son Chhay.
Rong Chhun, president of the Cambodia Independent Teachers Association, said that cancellation of the debt would benefit every Cambodian.
“Currently, each person in Cambodia has at least $2,000 of debt,” he said.
