Laos Government Bonds Selling Fast

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Laos government savings bonds selling fast.

The Government of Laos has successfully sold half of the savings bonds it issued earlier this month in just eight days.

According to a statement by the Bank of Laos, some 10,517 individuals and entities have purchased savings bonds after their issuance by the central bank on 15 June.

Residents have shown great interest in purchasing bonds, say sources at the central bank, with sales conducted via commercial banks across the country.

The first tranche of government bonds amounted to some LAK five trillion.

The Bank of Laos says that thanks to the interest shown by residents in the purchase of the bonds, the country’s financial situation, and the exchange rate, have shown improvement.

Purchase of the bonds will see investors receive a non-transferable interest payment rate of 20% per year.

The savings bonds were issued as a means of fighting inflation, with a significant portion of money in circulation pulled out of the economy helping decrease liquidity.

In May, the inflation rate in Laos reached 12.8 percent, the highest in 15 years. Over the course of a month, there was a 3.3 percent increase, but an 11.3 percent increase over the same period last year.