Laos is accelerating public debt reforms as it works toward long-term fiscal stability, stronger public finances, and transparent, sustainable debt management.
A high-level meeting on public debt management was held in Lao capital Vientiane to discuss strategies for improving the efficiency, transparency, and long-term sustainability of public debt management system and strengthening fiscal risk management, the Vientiane Mai newspaper reported on Thursday.
Speaking at the meeting on Tuesday, Lao Deputy Minister of Finance Soulivath Souvannachoumkham said the government remains committed to restoring macroeconomic stability and ensuring transparent, sustainable debt management.
He highlighted three key priorities: strengthening public debt management, improving public financial management, and assessing fiscal and financial risks associated with state-owned enterprises and reserve debt.
Progress in foreign exchange sector reforms has also contributed to improved fiscal conditions. The establishment of the Lao Foreign Exchange Market (LFX) has increased market transparency, encouraged wider use of the local currency kip, and supported local currency settlements with neighboring countries. These measures are designed to reduce reliance on foreign currencies, strengthen monetary policy, and improve exchange rate predictability.
The Lao government is prioritizing debt resolution by repaying foreign debts on schedule and negotiating with creditor countries to restructure obligations, while emphasizing the importance of maintaining Laos' financial credibility.