PHNOM PENH (AFP)--Cambodian premier Hun Sen said Friday the country's banking sector was stable despite the global financial crisis, but plans to set up a national stock exchange could be delayed.
The prime minister said the state of the country's finance industry was "in a stable position which is not worrisome" because Cambodia "has not yet got a stock market."
"If there is no stock market, there is no problem," Hun Sen said during a government meeting with businessmen and investors.
But he said he still aimed to set up a bourse once fears of a global recession had receded.
"When the wind disappears, we will try to establish the stock market," Hun Sen said, while admitting he wasn't entirely sure how the market worked.
"I know only that when the red arrow sign is down it means (the stock) is down...But now I see the red arrow sign is down all the time," he said.
Cambodia earlier this year signed an agreement with representatives from South Korea's stock exchange, the Korea Exchange, Asia's fourth-largest bourse operator, to establish a stock market in 2009.
While still among one of the world's poorest countries, Cambodia has emerged from decades of conflict as one of the region's rising economies.
It has posted annual economic growth averaging 11% over the past three years on the back of strong garment and tourism sectors.
But the International Monetary Fund recently said Cambodia's economy was expected to flounder next year as the world crisis deepened.
Cambodia remains a largely cash-only economy and a high degree of mistrust keeps many people hoarding their money at home instead of using banks.
The prime minister said the state of the country's finance industry was "in a stable position which is not worrisome" because Cambodia "has not yet got a stock market."
"If there is no stock market, there is no problem," Hun Sen said during a government meeting with businessmen and investors.
But he said he still aimed to set up a bourse once fears of a global recession had receded.
"When the wind disappears, we will try to establish the stock market," Hun Sen said, while admitting he wasn't entirely sure how the market worked.
"I know only that when the red arrow sign is down it means (the stock) is down...But now I see the red arrow sign is down all the time," he said.
Cambodia earlier this year signed an agreement with representatives from South Korea's stock exchange, the Korea Exchange, Asia's fourth-largest bourse operator, to establish a stock market in 2009.
While still among one of the world's poorest countries, Cambodia has emerged from decades of conflict as one of the region's rising economies.
It has posted annual economic growth averaging 11% over the past three years on the back of strong garment and tourism sectors.
But the International Monetary Fund recently said Cambodia's economy was expected to flounder next year as the world crisis deepened.
Cambodia remains a largely cash-only economy and a high degree of mistrust keeps many people hoarding their money at home instead of using banks.
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