Manila, Dec 6 (IANS): The Manila-based Asian Development Bank (ADB) on Tuesday announced that it has approved a $50-million loan to support the Cambodian government to diversify the country's economy and boost its global competitiveness.

The program will support Cambodia's post-Covid-19 economic recovery by supporting government reforms to enhance the investment and business environment, foster the growth of micro, small, and medium-sized enterprises (MSMEs), and improve trade policy and trade facilitation, Xinhua news agency quoted the lender as saying.

"The COVID-19 pandemic severely impacted key sectors of the Cambodian economy like garment, footwear, and textile manufacturing, as well as tourism and construction," ADB senior economist Sion L. Morton said.

The reforms under the program will help Cambodia's post-pandemic recovery prospects by paving the way for businesses to grow and migrate to higher value-added segments and adapt to the changing trade landscape, he said.

The program will help improve the overall business climate for both domestic and foreign firms, the statement said, adding that it will support the development and diversification of MSMEs, improving their access to finance, and creating new markets for them.

"The program will also help Cambodia improve the implementation of regional trade agreements and strengthen coordination on trade facilitation to provide more opportunities for Cambodian businesses to export their goods," the lender said.