LCB’s Depositors To Be Repaid

Source: Vientiane Times

Officials of the Bank of Lao PDR (BOL) have confirmed that customers or depositors of the Lao Construction Bank Limited (LCB) will be repaid once data of the bank’s depositors are provided.

Since late 2019, LCB has been under the control of BOL, the nation’s central Bank, because of liquidity and stability concerns. Customers of the seized bank have now been directed to register themselves to receive their funds.

The Director General of the Bank Supervision Department under the BOL, Mr Aloun Bounyong, told the local media last week that the central Bank is in-charge of repaying funds to the depositors of LCB and the process of reimbursement is getting underway.

“The repayment of funds will be based on the actual value of LCB’s assets, which has been collected by the bank. It is eventually dependent on the deposit figures of the banks’ customers until the date when BOL took control of it,” he said.

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Mr Aloun said that BOL will repay every depositor 80 percent of their funds by transferring the amount into accounts at three major state commercial banks Banque Pour Le Commerce Exterieur Lao (BCEL), Lao Development Bank, and Agricultural Promotion Bank.

“The remaining amount will be arranged after the enforcement of a court order,” he said.

He urged the depositors of LCB, who already have accounts with any state-run commercial banks, to provide information at the banks’ counters with details of the bank accounts, ID cards, passports or family books.

The customers of LCB who do not have accounts with any state-run commercial banks have been advised to open accounts, and to inform bank officials about opening such accounts for the incoming repayments of LCB.

“From July 12 to July 30, the bank is open for depositors to register and provide information about bank deposits. Once depositors have correctly provided full details to the officials in-charge of repayment, the repayment of funds is set to be completed by August this year,” Mr Aloun added.

The LCB’s depositors can reach officials in-charge of repayment during working hours at the phone numbers (030) 9336690, (030) 9338065, and (030) 9335094.

LCB is a joint-venture commercial bank owned by Lao and foreign investors. It officially opened in Vientiane in February 2012.

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