Press "Enter" to skip to content

Laos Next Country On The List To Face Bankruptcy

Political incompetence and Chinese debt are the two main factors contributing to a string of countries that are facing bankruptcy, this time in South East Asia.
Laos, a landlocked country exists on a peninsula-like region stretching between Thailand, China, Cambodia, Vietnam and Myanmar (Burma). The capital is Vientiane , located on the Mekong River in the northern portion of the country is where much of the commerce takes place.

Pakistan and Sri Lanka have recently admitted that they are unable to meet interest payments on loans which has sent those countries into turmoil. Surging inflation and dwindling reserves are about to claim Laos as another victim. Fuel prices and availability of fuel is causes long lines at petrol stations and some people are even driving to nearby Thailand to refuel their cars.
The currency of Laos is collapsing, losing 30% of it’s value against the US dollar and the credit rating of the country has been downgraded by international lenders.

Half of Laos’s debt is owed to China, about seven billion dollars. Much of this debt was spent on a railway line that connects Laos to China. China’s debt trap is extending to other countries in the region too. Undoubtedly, more countries will follow, giving China an opportunity to expand it’s borders.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *