To Laos' financial stability Japan proposes joint research policy January 7 20:34
In Laos, where huge borrowing from China has become a problem, Lao government has decided that joint research on financial stabilization by experts from Japan and Laos should be carried out and measures should be taken to make profitable large infrastructure projects. We have compiled policy recommendations for
The policy proposal was made by a joint research team of JICA = experts of the Japan International Cooperation Agency and the National Institute of Economic Research in Laos. The policy proposal was compiled and reported to the Deputy Prime Minister of Laos on July 7.
In Laos, despite financing deficits, it has borrowed huge amounts from China for construction of railways and other infrastructure, and policy proposals have made it possible to earn profits in large infrastructure projects and abolished state-owned enterprises with poor performance And so on.
He also recommends that the reliance on foreign currency borrowings should translate into longer-term borrowings while maintaining investor confidence.
In Laos, there are concerns about the problem of so-called "debt traps" in which China lends excessively with the right to operate the infrastructure as collateral, and Japan intends to further promote policy support .
Toshio Nishizawa, a research team professor at the Graduate School of Public Policy at the University of Tokyo, said, "The prospects for borrowing were poor. How to link infrastructure already under construction to economic development is an issue."