The Lao People’s Democratic Republic (Lao PDR) domestic bond market is in its preliminary stages. The Government issues treasury bills on a regular basis to finance the country’s budget deficit. It also issues arrears clearance bonds to clear government debt from state-owned enterprises (SOEs).

A core goal of the Lao PDR’s bond market development is to establish primary and secondary markets for government securities. The Government is drafting an Enterprise Law that will support future corporate bond development. The Lao PDR is seeking to formally establish its stock and bond markets by 2010.