Laos Government to Resolve Debt, Fuel, Currency Crises

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Patuxay at sunrise in Vientiane, Laos

The Government of Laos has pledged to stave off debt default by managing exchange rates and reigning in state enterprises.

The commitment to stabilizing the economy was one of 13 issues the cabinet identified as requiring immediate attention during a two-day open government meeting that ended on Friday.

The government resolved to use various means to try to solve the problem of public debt, especially debt created by state enterprises.

According to Government Spokesperson, Ms. Thipphakone Chanthavongsa, the government will negotiate with creditors to postpone the repayment of principal and interest, as well as seek new low-interest loans.

First Open Government Meeting in Laos
The first open government meeting of 2022 ended on Friday in Laos.

The government will also do its best to reduce the creation of any unnecessary debt.

Meanwhile, Laos is to tackle inflation, as well as control the currency exchange rate and commodity prices. At the same time, it will place an extra focus on solving the problem of fuel supply through a number of economic measures, according to Ms. Thippakone.

The government will also continue reforming state enterprises and will keep an eye on ineffective projects, as well as focus on investment projects that assist in poverty reduction.

Investment policies and procedures to encourage foreign investment need to be improved, while the government says it must ensure that newly authorized foreign investment projects are inspected and monitored on schedule so that obligations do not fall behind in reaching the state budget.

Other tasks the government is to urgently work on include issues relating to corruption, defense, unemployment, environmental problems, and disaster preparedness.

The government also noted that it must improve the quality of services in the tourism sector, and quickly resolve difficulties related to visas and entrance procedures.