The Lao People’s Democratic Republic (Lao PDR) domestic bond market is in its preliminary stage. The government issues Treasury Bills on a regular basis to finance the country’s budget deficit. It also issues Arrears Clearance Bonds on an irregular basis to clear government debt from state-owned enterprises (SOEs).

A core goal of the second phase of Lao PDR’s bond market development is to establish primary and secondary markets for government securities. The government is working on a draft Enterprise Law that will support future corporate bond development.

The government is also developing and reforming the financial sector, with a major focus on the banking sector. The links below provide information on financial sector reforms in Lao PDR.