The government is cagey about talks, but analysts think it has a good chance of renegotiating its debt, particularly with China. Laotians have some reasons to take heart
Save time by listening to our audio articles as you multitaskfrom shortages of fuel, food and medicine. This week the government there said that, until at least July 10th, it would supply fuel only to vehicles delivering essential services.
Another parallel with Sri Lanka is bad policy. To finance grand infrastructure projects the government, run by the Lao People’s Revolutionary Party since 1975, has over the past decade amassed debts totalling $14.5bn or 88% of, nearly half of which is owed to China. It is hard to see how it will make annual payments of $1.
The measures seem to have had some effect. The kip has stabilised in recent days, probably owing to the capital controls, reckons Heron Lim of Moody’s Analytics. Queues at petrol stations have disappeared, says an observer in Vientiane.
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