Lao PDR - Risk premium on lending

Risk premium on lending (lending rate minus treasury bill rate, %)

The value for Risk premium on lending (lending rate minus treasury bill rate, %) in Lao PDR was 14.64 as of 2010. As the graph below shows, over the past 15 years this indicator reached a maximum value of 15.25 in 2009 and a minimum value of 2.00 in 1999.

Definition: Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

Source: International Monetary Fund, International Financial Statistics database.

See also:

Year Value
1995 5.21
1998 5.62
1999 2.00
2000 2.06
2001 3.47
2002 7.93
2003 5.63
2004 8.88
2005 8.22
2006 11.66
2007 10.14
2008 11.74
2009 15.25
2010 14.64

Classification

Topic: Financial Sector Indicators

Sub-Topic: Interest rates