Agreement on Determining Bond Rediscount Rates and Repo Rates
关于确定债券再贴现利率与回购利率的协议
ຂໍຕົກລົງ ວ່າດ້ວຍ ການກຳນົດອັດຕາດອກເບ້ຍຊື່-ຂາຍຂາດຕົວ ແລະ ອັດຕາດອກເບ້ຍຊື່-ຂາຍຝາກພັນທະບັດ
Summary
The Governor of the Bank of the Lao PDR issues this Agreement on the determination of bond rediscount (outright purchase) rates and repurchase (sell-buyback) rates, aiming to lay the foundation for developing the money market and capital market and effectively fulfill the Bank of the Lao PDR's role as lender of last resort.
Articles
Article 1
Purpose. To lay the foundation for the development of the money market and capital market, and to enable commercial banks to efficiently utilize their own sources of funds; at the same time, to enable the Bank of the Lao PDR to effectively fulfill its role as lender of last resort.
Article 2
Definitions. 1. "Rediscount (Outright Purchase) Interest Rate" refers to the interest rate applicable in circumstances where a bondholder lacks liquidity and needs to sell the bonds outright to another party for holding. 2. "Repo (Sell-Back Repurchase) Interest Rate" refers to the interest rate applicable in circumstances where a bondholder temporarily lacks liquidity and will redeem the bonds upon maturity. 3. "Standard Interest Rate" refers to the short-term interest rate determined by the Bank of the Lao PDR, denominated in Lao Kip, with a maturity of less than seven days. (This portion could not be fully recognized from the official scan; see the Lao official gazette.)
Article 3
Determination of the rediscount (outright purchase) interest rate. The rediscount (outright purchase) interest rate is set at a level approximately 15% below the standard interest rate. Rediscount (outright purchase) interest rate = Standard interest rate × (1 – 15%).
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