China Forgives $4 Million in Khmer Rouge-era Debt

Kiss and beg? Hun Sen embracing and kissing Wu Bangguo (Photo: CEN)
Chun Sakada, VOA Khmer
Phnom Penh Thursday, 04 November 2010

China announced Thursday it would forgive Cambodia more than $4 million in debt owed by the government of the Khmer Rouge.

In an agreement signed between Prime Minister Hun Sen and China’s top legislator, Wu Bangguo, the two sides said Cambodia’s debt would be transferred into development projects, a government spokesman said.

The debt cancellations comes after the visit of US Secretary of Stat Hillary Clinton, who discussed the possibility of addressing more than $400 million owed by Cambodia to the US.