Debt-Saddled Laos Turns to Deferrals as Repayments Nearly Double
- Country defers about $670 million debt repayments in 2023
- Government aims to cut public debt to GDP ratio to 89% by 2025
The Boten Special Economic Zone in Boten, Laos.
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Laos’ external debt payments last year nearly doubled to $950 million, prompting the Southeast Asian nation to seek additional deferrals to avoid defaulting on debt that exceeds economic output, according to a government report.
External debt repayments jumped from $507 million in 2022, based on a Ministry of Finance report published on Friday. That led Laos to defer $670 million in principal and interest payments in 2023, adding to an estimated $1.22 billion of obligations postponed since 2020, according to government data.