Laos to borrow and also sell bonds to cover budget deficit
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Communist Laos plans to borrow 1,800 billion kip (US$225 million) and sell 300 billion kip in bonds to address its budget deficit, reports said yesterday.
In fiscal year 2013-14, ending on September 30, Laos plans to spend 17,830 billion kip, 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.
