{"title":"Credit crunch: Chinese infrastructure lending and Lao sovereign debt","authors":"Keith Barney, Kanya Souksakoun","doi":"10.1002/app5.318","DOIUrl":null,"url":null,"abstract":"<p>Lao PDR's push for large infrastructure-led economic growth has been delivered through a significant amount of financial leverage and a build-up of sovereign debt obligations. The government now finds itself in danger of a sovereign default. This article traces the roots of this debt crisis over the past decade, focusing particularly on the role of hydropower. A significant share of infrastructure lending to Laos has been through Chinese policy banks. We argue that over-lending to dam projects focused on the domestic energy market has been at the core of Laos' debt situation. Through 2020 the Lao Government has undertaken a series of restructuring measures, including privatisation of state assets, engaging in debt renegotiations with China, and attempts to secure new short-term credit. We outline a range of other options Laos has to reschedule or restructure their sovereign debt, and offer policy targeted recommendations focusing on reforms in the energy sector.</p>","PeriodicalId":45839,"journal":{"name":"Asia & the Pacific Policy Studies","volume":"8 1","pages":"94-113"},"PeriodicalIF":1.4000,"publicationDate":"2021-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1002/app5.318","citationCount":"15","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia & the Pacific Policy Studies","FirstCategoryId":"90","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/app5.318","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 15
Abstract
Lao PDR's push for large infrastructure-led economic growth has been delivered through a significant amount of financial leverage and a build-up of sovereign debt obligations. The government now finds itself in danger of a sovereign default. This article traces the roots of this debt crisis over the past decade, focusing particularly on the role of hydropower. A significant share of infrastructure lending to Laos has been through Chinese policy banks. We argue that over-lending to dam projects focused on the domestic energy market has been at the core of Laos' debt situation. Through 2020 the Lao Government has undertaken a series of restructuring measures, including privatisation of state assets, engaging in debt renegotiations with China, and attempts to secure new short-term credit. We outline a range of other options Laos has to reschedule or restructure their sovereign debt, and offer policy targeted recommendations focusing on reforms in the energy sector.
期刊介绍：
Asia & the Pacific Policy Studies is the flagship journal of the Crawford School of Public Policy at The Australian National University. It is a peer-reviewed journal that targets research in policy studies in Australia, Asia and the Pacific, across a discipline focus that includes economics, political science, governance, development and the environment. Specific themes of recent interest include health and education, aid, migration, inequality, poverty reduction, energy, climate and the environment, food policy, public administration, the role of the private sector in public policy, trade, foreign policy, natural resource management and development policy. Papers on a range of topics that speak to various disciplines, the region and policy makers are encouraged. The goal of the journal is to break down barriers across disciplines, and generate policy impact. Submissions will be reviewed on the basis of content, policy relevance and readability.
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
