Lao People’s Democratic Republic:Staff Report for the 2019 Article IV Consultation—Informational Annex

2019 Article IV Consultation-Press Release; Staff Report; Statement by the Executive Director for Lao People's Democratic Republic


2019 Article IV Consultation-Press Release; Staff Report; Statement by the Executive Director for Lao People's Democratic Republic

Fund Relations

(As of May 31, 2019)

Membership Status: Joined on July 5, 1961.

General Resources Account:

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SDR Department:

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Outstanding Purchases and Loans: None

Latest Financial Arrangements:

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Projected Payments to the Fund2

(SDR Million; based on existing use of resources and present holdings of SDRs):

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Exchange Rate Arrangement

The de jure arrangement is a managed float. Since September 2016, the kip has followed a depreciating trend against the U.S. dollar. Therefore, the de facto exchange rate arrangement was reclassified to a crawl-like arrangement from a stabilized arrangement, effective September 2, 2016. The authorities’ objective is to limit currency fluctuations of LAK against USD within ±5 percent per annum. The Bank of the Lao P.D.R. (BOL) sets a daily official reference rate for LAK to USD which is calculated based on the weighted average of the previous day’s overall rate, the estimation of the domestic demand for USD and the forecasting of USD rate in the international market. Commercial banks and foreign exchange bureaus are required to maintain their buying and selling rates within ±0.25 percent of the daily reference rate. For the Euro and Baht, the buying and selling rate may not exceed a margin of 0.5 percent and 0.75 percent, respectively. For other currencies, a margin of 2 percent applies.

Lao P.D.R. has accepted the obligations under Article VIII, Sections 2(a), 3 and 4 and maintains an exchange system free of restrictions on the making of payments and transfers on current international transactions, except for restrictions imposed solely for security reasons and notified to the Fund under the Decision No. 144-(52/51).

Article IV Consultation

The last Article IV consultation discussions were held in Vientiane during November 29–December 13, 2017and were concluded by the Executive Board on February 26, 2018. The staff report (Country Report No. 18/84) was published March 2018.

Technical Assistance

Over the past five years, Lao P.D.R. has received technical assistance in the areas of: banking supervision and interbank market development; monetary operations; customs administration; tax and natural resource revenue administration; tax policy; public financial management; macroeconomic management; price statistics; external sector statistics; government finance statistics; and the national accounts. A Bangkok-based IMF office, Capacity Development Office in Thailand (CDOT) has facilitated technical assistance to Lao P.D.R. (as well as Cambodia, Myanmar, and Vietnam) and has provided technical assistance in macroeconomic analysis and forecasting, monetary operations, government finance statistics, external sector statistics, and public financial management.

Resident Representative

Francois Painchaud assumed the Resident Representative post for Vietnam and Lao P.D.R., based in Hanoi, on June 3, 2019.

Information on the Activities of Other IFIS

Information on the activities of other IFIs in Lao P.D.R. can be found at:

Statistical Issues

(As of June 30, 2019)

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Lao P.D.R.—Table of Common Indicators Required for Surveillance

(As of June 29, 2019)

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Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).

Any reserve assets that are pledged of otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency, but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency, but settled by other means.

Both market-based and officially determined, including discount rates, money market rates, and rates on treasury bills, notes and bonds.

Foreign and domestic bank, nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.


Extended Credit Facility (ECF), formerly PRGF.


When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.