The Bank of Lao PDR convened a meeting at the Prime Minister’s Office on Tuesday to discuss implementing a new credit policy aimed at revitalizing the Lao economy.
The meeting was attended by Mr. Bounleua Sinxayvoravong, the Governor of BOL, along with Deputy Ministers, Deputy Governors, Deputy Governors of Vientiane, BOL regional branch officials, local departments, and stakeholders.
The primary objective of the meeting was to decide on the effective execution of the new credit policy in order to stimulate the economy. It also addressed the government’s decision to revise the national plan to tackle current economic and financial challenges.
According to Mr. Bounleua, the new credit policy is focused on growing the production, trade, and service sectors in the country, which are crucial for minimizing imports. Its goals include promoting production for export, generating employment opportunities, and contributing to the maintenance of robust macro-financial-monetary stability and sustainable economic growth.
BOL also seeks to create favorable conditions for businesses, including micro-enterprises, SMEs, and large enterprises, to access capital with reasonable costs. This is intended to facilitate the creation, expansion, and improvement of their production, processing, service, and trade activities.
The credit policy has been divided into two specific categories: the policy to address overdue interest payments and the policy to allocate capital to local areas.
The priority sectors identified in the credit policy scheme are the agriculture-forestry sector (including cultivation, animal husbandry, and agricultural product processing), the industrial-processing sector (including food and beverage, industrial chemicals, daily-use products, and packaging), the services sector (including tourism and crafts), the trade sector (related to export-oriented businesses such as agricultural product collection and purchase), and the transportation sector (involving the transfer of export products and trade) and the medical services sector.
To reform and revive the Lao economy, BOL has taken several other measures this year. In January, it closed down 113 money exchange businesses affiliated with commercial banks and suspended their operations across the country. This move was aimed at exerting better control over exchange rates within the country.