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New governor takes office at central bank
Mr Somphao Phasith has taken office as the new Governor of the Bank of the Lao PDR, after being appointed by the National Assembly in June.
He replaces Mr Phouphet Khamphounvong who is now the Minister of Finance.
An official ceremony was held at the bank on Wednesday, and was witnessed by Deputy Prime Minister Somsavat Lengsavad and other high-ranking officials.
Mr Phouphet and Mr Som phao both studied banking when they were younger and have been working for the central bank for many years. Mr Phouphet was promoted to Deputy Governor in the 1990s and then to Governor in 2006. Mr Somphao has served as Deputy Gov ernor under Mr Phouphet since 2006.
Office Head of the central bank Mr O Vilaphan said they had made great improvements under the leadership of Mr Phouphet, particularly in terms of stabilising the kip exchange rates.
They have also overseen the modernisation of the commercial banking sector, which has introduced new technology to allow integration with financial institutions in the region and the world.
Despite the global financial crisis and natural disasters, Laos has managed to maintain macro-economic stability and increasing foreign investment, with average economic growth at 7.9 percent per annum over the past five years.
In 2005 there were eight banks in Laos including four state banks, two joint ventures and two private banks.
Now Laos has 24 banks, of which three are state enterprises. One of the three state banks has become a public company and the other two will follow suit in the next few years.
Mr O said the 9th Party Congress resolved in March this year that the main function of the central bank will continue to be preserving currency stability.
They will encourage more commercial banks to open and also improve micro-financing to provide loans to subsistence farmers.
Other new ministers assumed office last week, after National Assembly approval last month. Prof. Dr Bosengkham Vongdara is now Minister of Information, Culture and Tourism, replacing Mr Mounkeo Oraboun, while former Minister of Finance Mr Somdy Douangdy takes up the position of Planning and Investment Minister, replacing Dr Sinlavong Khoutphaythoune.
vientiane times
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