The German government announced on Tuesday that following negotiations with Cambodian officials it has decided to approve a package of $34 million in loans and $32 million in grants to develop rural infrastructure and reduce poverty.
A press release by the German Embassy urged Cambodia, however, to reverse last year’s democratic backsliding and deterioration in human rights in order to avoid the impending loss of duty-free EU market access for its garment sector and other export industries under the union’s Everything But Arms (EBA) scheme.
The embassy said its $34 million in loans would be part of a rural infrastructure development project with France and the European Union, who would bring the total amount to some $90 million in loans.
