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PM Outlines Focus Of Central Bank To Ensure Financial Stability

Source: Vientiane Times

The Governor of the central bank (BOL) on Friday delivered a report on bank’s operations at the 11th General Meeting of the BOL’s 4th Party Executive Committee.
The report was delivered at the bank’s annual meeting, which was attended by Member of the Politburo of the Party Central Committee and Prime Minister, Dr Sonexay Siphandone.

Following the presentation of the report by the Secretary of the Executive Committee of the Party and Governor of the central bank, Dr Bounleua Sinxayvoravong, the Prime Minister praised the achievements of the bank over past year.

At the same time, he advised the central bank to prioritise seven major issues in an attempt to tackle the country’s economic and financial problems.
The challengers currently affecting Laos must be addressed one by one, he added.

The Prime Minister identified seven important issues to be addressed by the banking sector.

Firstly, the BOL’s Board of Directors must pay close attention to leadership and education with regard to political thought among their employees so that they fully support the guidelines and policies of the Party, state laws, resolutions, and instructions issued by the country’s top leaders.

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Bank employees must comply with the bank’s regulations and principles, acknowledge the problems facing the finance sector and fulfil the noble political role and responsibility assigned to them by the Party, state and people. They should have the strength to overcome obstacles, have belief in strong political values, be patriotic, and make sacrifices for the common good.

The bank must also correct the problem of intellectual degeneration, and short-sightedness and corruption within its ranks, in addition to operating more transparently and showing respect for the rule of law and state regulations by the management and employees at every level.

Secondly, unity among Party members is essential. The Board of Directors must be more united in decision-making, improving management, and solving the problems of employees.

Thirdly, the premier called for the bank to improve its leadership plan and working methods and to improve state administration in line with the law, carry out regular evaluations and the problems that occur in each department.

Fourth, he asked the bank to improve the organisational system at all levels so that its operations are more efficient, and quickly hire more staff as needed and ensure that quality is the basis for recruitment.

He also advised the bank to use its human resources wisely and effectively according to their skills and experience, and to promote employees who have strong political qualities and a sincere attitude towards the Party, state and people.

Fifth, PM Sonexay instructed the bank to step up the fulfilment of Party resolutions and orders, as well as engage fully in inspections by the Party and state, tackle corruption, and correct the deficiencies and errors revealed during inspections and audits.

Sixth, the bank must tackle unresolved issues in the implementation of the 2024 monetary plan, especially as this is the final year of the 9th Five-Year National Socio-Economic Development Plan.

Lastly, the Prime Minister said it was essential to follow the guidance of the Secretary General of the Central Party and President of the Lao PDR, Thongloun Sisoulith, in transitioning to an independent economic regime.

This requires ensuring that foreign currency reserves are stable and that an effective monetary policy is in place, especially with regard to inflation and exchange rate stability. All types of financial institutions must be protected against the risk of internal and external financial crises, so that the country’s financial system is secure, he added.

Ministers, deputy ministers, deputy director generals of ministry departments and state organisations equivalent to ministries, together with bank employees, also attended the meeting.