US records show the loans were made for food and other agricultural goods needed in isolated areas of the Cambodian countryside\u00a0<\/strong><\/em><\/p><\/blockquote>\nCambodia racked up $278 million in US loans under the Lon Nol government in the early 1970s, when the Khmer Rouge were gaining in strength. But his efforts to defeat the ultra-Maoists were undermined by gross corruption within his own administration.<\/p>\n
US records show the loans were made for food and other agricultural goods needed in isolated areas of the Cambodian countryside which had been cut off by the Khmer Rouge.<\/p>\n
But the debt has risen sharply over the years due to interest. A US embassy official noted in 2017 that the debt was worth about $505 million, all in arrears with a concessional 3 percent interest rate, which was below market rates. The Fresh News dispatch said the debt was now worth more than $700 million including interest payments.<\/p>\n
The US had also encouraged Phnom Penh to work with Washington in finding a solution to the debt since shortly after the 1995 Paris Club negotiations.<\/p>\n
Sources said there was a brief discussion of Cambodia\u2019s official debt to the US during the November 2015 US-Cambodia Competitiveness and Growth Dialogue, while the last detailed discussion of the issue occurred in 2011, when a US delegation visited Phnom Penh.<\/p>\n
In 2008 testimony before Congress on the debt, US officials said they had negotiated for several years with the Hun Sen government to work out a payment schedule but to no avail.<\/p>\n
\u201cSherman expressed deep satisfaction on the Cambodia-US cooperation in areas such as the finding of US military remains in Cambodia, counter-terrorism and humanitarian activities,\u201d Eang Sophalleth said.<\/p>\n
\u201cShe also mentioned opportunities to expand cooperation in the oil and gas sector, investment in water, infrastructure, green energy and other issues.\u201d<\/p>\n<\/p><\/div>\n