Lao gov't to pay debts owed to companies

2017-06-19 15:25:55 GMT2017-06-19 23:25:55(Beijing Time) Xinhua English

VIENTIANE, June 19 (Xinhua) -- The Lao government debt amounting to 400 billion Lao kip (48.6 million U.S. dollars) owed to companies for carrying out state investment projects will be paid out within the second quarter of this year, the state-run media reported on Monday.

The move aims to enable the private companies to maintain their financial liquidity and stability, contributing to the continued growth of the Lao economy.

The government is trying to address the debts for development projects which were approved by the National Assembly (NA). Nevertheless, priority will be given to projects in which construction activities have been completed, state-run Vientiane Times quoted a government's recent report as saying.

In addition, debts owed to projects carried out in 2012 and before will be inspected, and will be placed on the first priority list for payment if the project had completed.

Meanwhile, projects in which construction was completed in 2016 and before will be placed on the second priority list.

Nevertheless, debts owed to companies that carried out flood relief and recovery projects from the Nock Ten storm in 2011 and other storms will be allocated to the list for payment.

A senior economist from the National Economic Research Institute Leeber Leebouapao said on Monday that it was critical to pay out debts owed to companies that completed construction of NA approved projects.

"The government's delays to pay out debts not only affects the financial liquidity of companies, but also affects commercial banks' business," he said.

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