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Tuesday, July 16, 2024

Lao Construction Bank Depositors to Retrieve Funds Next Month

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Authorities have confirmed that funds will be repaid to Lao Construction Bank Limited (LCB) depositors in August following the bank’s failure in late 2019.

According to Socio-Economic Daily, the Bank of the Lao PDR (BOL) took control of the Lao Construction Bank in December 2019, citing liquidity and stability concerns, and has directed its customers to register to receive their funds.

Director-General of BOL’s Financial Institutions Supervision Department, Mr. Aloun Bounyong, says the BOL has set a deadline of next month to repay the LCB Bank depositors.

“BOL will transfer 80 percent of funds to all depositors into accounts at three state commercial banks, namely Banque Pour Le Commerce Exterieur Lao (BCEL), Lao Development Bank, and the Agricultural Promotion Bank,” said Mr. Aloun Bounyong.

“After providing their details, the refunds should be provided by August,” Mr. Aloun Bounyong added.

The reimbursement, on the other hand, will be based on the actual value of the BOL Bank’s assets and will be refunded at an 80 percent rate, with the remaining amount repaid pending the enforcement of a court order.

The Lao Construction Bank was a joint-venture commercial bank owned by Lao and foreign investors. It opened officially in February 2012.

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