PM stresses Kip stability maintenance

(KPL) Prime Minister Bouasone Bouphavanh has stressed the maintenance of the stability of the national currency kip by controlling the fluctuation of the Kip under 5 per cent.
PM Bouasone gave the advice at the annual meeting of the Bank of the Lao PDR, under the chairmanship of the bank governor, Mr. Phouphet Khamphounvong, held in Vientiane Capital on 28 and 29 April.
At the meeting, PM Bouasone emphasised all the banking authorities to pay attention to their performance.
The bank should maintain the interest at a reasonable rate to ensure the benefits of both depositors and lenders, which is a key factor for the promotion of production and poverty reduction.
“Strict law enforcement needs to be boosted in collaboration with local authorities to further implement the measures of foreign currency control and the promotion of Kip use nationwide,” he said.
“The mechanism of fund mobilisation needs to be improved and diversified to ensure a minimum growth of at least 38 per cent, efforts of setting up of a stock exchange will continue and it is likely to open in 2010”.
A key measure that the bank should take at the moment is the release of loans to activities of market-oriented production, particularly foodstuff production, poverty reduction, processing industries and infrastructure construction.
The banking structure has to be improved along with the promotion of micro-finance and village funds in accordance with laws and regulations to ensure sustainable poverty reduction.
The bank should also focus on human resource development and dispatch officials to cope with other negative phenomena in the banking framework.