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Friday, July 19, 2024

Government of Laos Declines Offer to Sell BCEL Bank Shares

This Week

The Office of the Prime Minister’s Office has issued a notice stating that it has declined a proposal by Phousy Group to purchase the government’s stake in BCEL bank.

Construction giant Phousy Group submitted a proposal earlier this month to purchase the government’s 51% share in the bank, causing concern among the bank’s retail consumer base.

The Prime Minister’s Office issued a notice on 10 November instructing the Bank of Laos and the Ministry of Finance to study the proposal and report back.

But according to a notice issued today, the proposal by Phousy Group has been rejected.

Notice by Prime Minister's Office rejecting the sale of BCEL.
Notice by the Office of the Prime Minister’s Office issued today.

Head of the Office of the Prime Minister’s Office, Khamchen Vongphosy, signed the notice, which states that “after careful consideration by the Ministry of Finance and the Bank of Laos, it is noted that BCEL, as a publicly listed commercial bank, operates transparently and is financially stable. Therefore, [we] do not agree to sell the government’s shares in this bank to any other party.”

The notice instructs the Ministry of Finance to inform Phousy Group of its decision.

Phousy Group is a locally-owned conglomerate with interests in construction, petroleum, and mining.

It has been named among a list of six companies authorized by the government to undertake the mining of cryptocurrencies under a trial program which is hoped can assist the country in repaying national debt.

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