3.3 DISBURSEMENTS BY TERMS OF ASSISTANCE


35. Over the period of 1992-2005, grants have constituted 77.3 percent of total ODA disbursements. In more recent years, however, the proportion of loans in total ODA disbursements has increased. During the second mandate of the Royal Government, 1999-2003, the loans component of the ODA constituted 26.5 percent of total ODA disbursements (Table 6). The loans component increased to 33.9 percent of total ODA disbursements in 2004 and has declined to 29.4 percent of total disbursements in 2005.

TABLE 6: DISBURSEMENTS BY TERMS OF ASSISTANCE
(in millions of US $)

Terms of Assistance

1999-2003

 2004 2005 Total 1992-2005
US$ % US$ % US$ % US$ %
GRANTS 1,769.5 73.5 367.2 66.1 370.7 70.6 4,843.0 77.3
LOANS 639.2 26.5 188.2 33.9 154.2 29.4 1,424.0 22.7
TOTAL 2,408.8 100.0 555.4 100.0 524.9 100.0 6,267.0 100.0

CHART 2: DISBURSEMENTS BY TERMS OF ASSISTANCE: 1992 - 2005

36. Overall, over the last five years, 1999- 2005, the composition of grants and loans has been changing from year to year. While the loans component has been maintaining an upward trend, there have been significant year to year fluctuations. The loans component of ODA disbursements increased from 26.5 percent of total ODA in 2001 to 34.5 percent in 2002 (Table 7). In 2003, the loans component declined to 30.8 percent of total ODA disbursed and then increased to 33.9 percent in 2004 and then declined to 29.4 percent in 2005. The increase in the loans portion of disbursements has implications for future national budgets because of the resulting increase in the size of the national debt and related debt service charges. The Ministry of Economy and Finance will be monitoring closely the financing of development programs/projects through loans; and will conduct comprehensive reviews of development programs/projects proposed to be financed through loans as an integral element of the prioritization/decision-making process. At this stage of development of Cambodia, the Royal Government of Cambodia places a high priority on securing financing of development programs/projects through grants from Cambodia’s development partners.

TABLE 7: DISBURSEMENTS BY TERMS OF ASSISTANCE AND DEVELOPMENT
COOPERATION PARTNER CATEGORY: 2001-2005
( in millions of US Dollars)

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