Statement by IMF Deputy Managing Director Naoyuki Shinohara at the Conclusion of his Visit to CambodiaPress Release No. 11/31
February 7, 2011
Mr. Naoyuki Shinohara, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today in Phnom Penh at the conclusion of his visit to Cambodia:
“Having been to Cambodia many times, I enjoyed my first visit as Deputy Managing Director of the IMF, and I wish to thank the Government and the National Bank of Cambodia (NBC) for their remarkable hospitality and the productive discussions on the Cambodian economy. In particular, I wish to thank Deputy Prime Minister and Minister of Economy and Finance Keat Chhon, and NBC Governor Chea Chanto for an insightful and frank exchange of views. I also visited an irrigation project in Kampong Cham province that has been financed from resources released by the IMF’s Multilateral Debt Relief Initiative (MDRI), which has clearly had a major impact in improving the lives of villagers.
“In my meetings, I praised the timely response to the global crisis by the government and NBC. This had helped mitigate the impact of the crisis and is now supporting a solid recovery. Traditional sectors, such as textiles and tourism, are rebounding and some progress is being made in diversifying the economy, while inflation remains under control.
“In the discussions, we focused on how to achieve sustainable broad-based growth. We agreed it will be necessary to address the economy’s long-standing structural weaknesses with continued strong policies. This includes expanding the limited fiscal space, especially by increasing revenues, while maintaining fiscal sustainability; strengthening monetary policy, taking into account the current liquidity of the banking system; preserving financial system stability; and promoting private sector-led economic diversification. We also reviewed the IMF’s extensive technical assistance program.
“We look forward to continuing our excellent cooperation with the Cambodian authorities.”