Laos to raise $262.5 million on capital market

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KipLaos plans to borrow $225 million and sell $37.5 million in bonds on the capital market to address its budget deficit, local media reports said on December 24.

In the fiscal year 2013-2014, ending on Sept 30, Laos plans to spend $2.23 billion, forcing the government to seek loans from international investors and sell bonds to local and foreign buyers to meet its target, the prime minister’s office said.

“Economists have cautioned that the budget deficit level is high,” the Vientiane Times reported.

Laos, a landlocked country of about 6 million people, is ranked among the world’s poorest countries. More than 50 per cent of its budget is covered by international aid donors.

While the Laos economy experiences strong growth, cracks are starting to show. Economists warn the country of 6.7 million is facing the downside of a development model based on easy credit, resource exploitation and infrastructure mega projects. There are also problems of high inflation and a lack of foreign currency reserves.

 

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Reading Time: 1 minute

Laos plans to borrow $225 million and sell $37.5 million in bonds on the capital market to address its budget deficit, local media reports said on December 24.

Reading Time: 1 minute

KipLaos plans to borrow $225 million and sell $37.5 million in bonds on the capital market to address its budget deficit, local media reports said on December 24.

In the fiscal year 2013-2014, ending on Sept 30, Laos plans to spend $2.23 billion, forcing the government to seek loans from international investors and sell bonds to local and foreign buyers to meet its target, the prime minister’s office said.

“Economists have cautioned that the budget deficit level is high,” the Vientiane Times reported.

Laos, a landlocked country of about 6 million people, is ranked among the world’s poorest countries. More than 50 per cent of its budget is covered by international aid donors.

While the Laos economy experiences strong growth, cracks are starting to show. Economists warn the country of 6.7 million is facing the downside of a development model based on easy credit, resource exploitation and infrastructure mega projects. There are also problems of high inflation and a lack of foreign currency reserves.

 

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