The World Bank has stopped providing loans to the nation of Cambodia amidst a controversial plan by the Phnom Penh government to evict thousands of people.
The Bank, which typically sends up to $70-million every year to Cambodia, said the funds will not be forthcoming until the dispute is settled.
The row centers on the Boeung Kak lake region, where Cambodian government officials have permitted a property developer to fill in the lake and construct luxury apartments and high-end shops.
As a result, villages have been demolished and thousands of residents have been forced out of their homes, while many others still face eviction.
"The World Bank's last loan to Cambodia was in December 2010," said Annette Dixon, the bank’s Director, Regional Operations, in a statement.
"Until an agreement is reached with the residents of Boeung Kak Lake, we do not expect to provide any new lending to Cambodia."
However, according to BBC, Cambodia might not even need the World Bank since it received huge investments from Chinese companies.
One of the companies behind the development of the Boeung Kak lake property is, The Inner Mongolia Erdos Hongjun Investment Company, a China-based firm that has promised to spend $3-billion in Cambodia.
In fact, a spokesman for the Cambodian government, Phay Siphan, downplayed the banks importance to his country.
"The [World] bank is not a proper help to Cambodia in the cause of development," he told Agence France Presse.
Boeung Kak is only a small part of China’s vast investments in the kingdom of Cambodia.
A report in the Phnom Penh Post stated that Mongolia Erdos plans to invest $1.9-billion in Cambodian mining and energy projects beginning in the first quarter of 2012 – including two 135-megawatt power generators near the town of Sihanoukville.