Lao PDR Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
Lao PDR's interest rate spread was 19.61% in 2010, ranked 120th globally. This represents a 8.9% decrease from 2009. Data from World Bank, covering 1991–2010.
Overview
Lao PDR's interest rate spread stood at 19.61% in 2010, a decline of +1.91pp from 2009. Lao PDR ranked 120th globally.
Lao PDR’s interest‑rate spread widened dramatically from a low of 2.50 % in 1991, the earliest year in the World Bank series, to an all‑time peak of 25.00 % in 2006, before easing to 19.61 % in 2010, a level that placed the country 120th globally. The 19‑year coverage shows a persistently high cost of borrowing relative to deposit rates, reflecting limited competition in the banking sector and macro‑financial instability during the transition from a centrally planned to a market‑oriented economy. By 2010 the spread remained well above that of peers such as São Tomé and Principe (17.76 %) and Kyrgyz Republic (21.76 %), though it was lower than Paraguay’s 28.88 %. The upward trajectory after the early‑1990s trough suggests that reforms aimed at deepening financial markets and improving regulatory oversight could compress the spread, while any reversal in fiscal discipline or external shocks might sustain the elevated gap.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 2010 | 19.61% | −1.91pp | #120 |
| 2009 | 21.53% | +2.19pp | #118 |
| 2008 | 19.33% | −4.17pp | #117 |
| 2007 | 23.50% | −1.50pp | #118 |
| 2006 | 25.00% | +2.92pp | #121 |
| 2005 | 22.08% | +0.69pp | #118 |
| 2004 | 21.40% | −2.52pp | #107 |
| 2003 | 23.92% | +0.58pp | #100 |
| 2002 | 23.33% | +3.67pp | #98 |
| 2001 | 19.67% | −0.33pp | #93 |
| 2000 | 20.00% | +1.42pp | #87 |
| 1999 | 18.58% | +7.09pp | #83 |
| 1998 | 11.49% | +0.49pp | #69 |
| 1996 | 11.00% | −0.67pp | #62 |
| 1995 | 11.67% | −0.33pp | #57 |
Detected Pattern
Analysis
Lao PDR matched the Export Boom Cycle pattern in 2023. Historically, 71% of countries showing this pattern (546 out of 768) saw interest rate spread improve within 24 months. View full analysis →
Frequently Asked Questions
Lao PDR's interest rate spread was 19.61% in 2010. Ranked 120th globally. This represents a 8.9% decrease from the previous year.
Lao PDR's interest rate spread peaked at 25.00% in 2006.
The lowest interest rate spread in Lao PDR was 2.50% in 1991.
Lao PDR ranks 120th globally in interest rate spread as of 2010.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
The interest rate spread of Lao PDR in 2010 was 19.61%. This ranks 120th in the world.
Cite this page
@misc{historysaid_lao-pdr_interest-rate-spread,
title = {Lao PDR Interest Rate Spread},
url = {https://historysaid.com/lao-pdr/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}