Luxembourg raises Lao banking standards

Mr Bounsong Somalavong greets guests at a ceremony to launch the Bank
of the Lao PDR's first technical working group on human resources development

The government of Luxembourg has allocated 2 million euros to help Laos upgrade its banking and finance sectors to meet international standards.

The two year cooperation project between the Luxembourg Agency for Development Cooperation (Lux-Development) and the Bank of the Lao PDR was officially unveiled on Friday at a ceremony held in Vientiane .

The project was announced after five months of preparation by both parties.

High ranking officials from the central bank and Lux-Development attended the launch of the first technical working group set up by the two organisations.

Under the cooperation programme, Lux-Development will fund training facilities and programmes, aiming to strengthen capacity building in the financial sector. Banking and finance will be revised to meet international standards, according to project officials.

A national human resources development strategy, a series of degree/diploma courses at different levels, and an induction course for new bankers will be established, officials said.

Luxembourg 's Financial Technology Transfer Agency will take charge of the training programmes and financial experts from the region will be invited to give lectures.

Speaking at the ceremony, Bank of the Lao PDR Deputy Governor, Mr Bounsong Somalavong, said the event marked the start of cooperation between the central bank and Lux-Development after months of preparation.

“If I may make a comparison between a construction project and this cooperation project, I would say that after the necessary preparation from architects and engineers, we are now starting to lay the first stones,” he said.

He said human resource development was very important for development of the banking and financial sectors in Laos , adding that successful banking operations depended on the skill of bankers.

More highly skilled staff would help the bank prepare for a number of challenges in coming years, he said, especially when the government opens the stock market in 2010.

Luxembourg has been a good development partner to Laos since 1997, in the areas of health, vocational training, human resource and community development, and good governance. Luxembourg is the second most important bilateral donor to the Lao health sector after Japan .

This the first time Lux-Development has provided help in the financial sector.

By Ekaphone Phouthonesy
(Latest Update January 19, 2008)