Lao People’s Democratic Republic - Risk premium on lending

14.64 (%) in 2010

In 2010, risk premium on lending for Lao People’s Democratic Republic was 14.64 %. Though Lao People’s Democratic Republic risk premium on lending fluctuated substantially in recent years, it tended to increase through 2001 - 2010 period ending at 14.64 % in 2010.

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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.