Phnom Penh (FN) Sep. 12 – Cambodian foreign minister Prak Sokhonn said that Cambodia allocates loans and manages national debts effectively.

"National debt can be at risk when the size of the debt increases to more than 40% of Gross Domestic Product (GDP). Cambodia’s debt is currently less than 30% of the GDP, therefore it is under control. We also allocate loans effectively," said minister Prak Sokhonn in a joint press conference with his Chinese counterpart Wang Yi following a bilateral talk, held Sunday in Phnom Penh.

Sokhonn's statement is made in response to the publication of the US-backed media saying Chinese aid and loans provided to Cambodia are debt traps, a claim which Cambodia denied.

Minister Prak Sokhon added that the loans that Cambodia received from China are allocated on infrastructure development.
=FRESH NEW