Banks in Laos have implemented stricter controls on foreign currencies notably the Thai baht and US dollar in a move to stabilise exchange rates and sustain the country’s economy. Speaking to Vientiane Times on Wednesday, bankers attributed the move to falling foreign currency reserves because businesses constantly required Thai baht and US dollars to import goods.
Commercial banks in Laos have lowered the interest rates charged on loans and offered on Kip accounts in line with a recent decision made by the Bank of the Lao PDR, hoping to stimulate economic activity. Conversely, banks have raised the interest rates offered on Thai Baht and US dollar deposit accounts hoping to build up reserves of these currencies amidst rising demand for the baht and US dollar. Banks informed Vientiane Times yesterday that lowering the interest rates on Kip accounts and loans was intended to encourage people to spend Kip and boost economic productivity.
Arion Legal is excited to announce the arrival of its newest Senior Legal Advisor, Steve Goddard. Steve is a qualified Australian Lawyer with several years’ experience specialising in foreign direct investment under the Cambodian, Myanmar and Lao PDR legal frameworks.
Arion Legal’s engagement with the legal community in the Lao PDR has developed further recently with members of our Vientiane office visiting the local Lao People’s Court Zone IV and speaking with judicial officials, including the Deputy President, Mr. Somphavanh Rardsavong, regarding some of the challenges of practicing law in Lao PDR.
Several years ago, the Lao government introduced a policy to reward qualified foreign expatriates in Laos with citizenship if they so desired. Laos also gives family books and ID cards to foreigners who do not want to denounce their original citizenship (permanent residence).