‘Financial crisis’: Laos stops payment for public projects

laos buddhaLao Prime Minister Thongsing Thammavong said during a special government meeting in Vientiane on September 13 that Laos was running a “high debt level” and was at the brink of a “financial crisis” unless all government agencies closely control all aspects of investment and “sharpen their focus” during the upcoming 2013-14 fiscal year.

Thongsing made the statement at the close of a national meeting in Vientiane to discuss the 2013-2014 socio-economic development plan.

The country’s debt now stands at 29.8 per cent of GDP. Thongsing said the government would delay paying money owed to contractors carrying out public projects. This would take the strain off the country’s financial and currency concerns. Meanwhile, the finance sector should “rigorously collect” all sources of revenue owed to the government, he added. Salary payments to civil servants have also been delayed.

“Any projects that have not been approved by the National Assembly, as well as those where the government owes money to private contractors, will not be allowed to continue,” the prime minister said. However, it would be “acceptable” for these projects to obtain funding from sources other than the government, he said.

Thongsing also requested that no new government projects be initiated in the 2013-14 fiscal year. This would include the construction of new offices and projects that do not directly contribute to productivity. The government will also not consider payments to projects authorised after 2011.



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Lao Prime Minister Thongsing Thammavong said during a special government meeting in Vientiane on September 13 that Laos was running a "high debt level" and was at the brink of a "financial crisis" unless all government agencies closely control all aspects of investment and "sharpen their focus" during the upcoming 2013-14 fiscal year. Thongsing made the statement at the close of a national meeting in Vientiane to discuss the 2013-2014 socio-economic development plan. The country’s debt now stands at 29.8 per cent of GDP. Thongsing said the government would delay paying money owed to contractors carrying out public projects. This...

laos buddhaLao Prime Minister Thongsing Thammavong said during a special government meeting in Vientiane on September 13 that Laos was running a “high debt level” and was at the brink of a “financial crisis” unless all government agencies closely control all aspects of investment and “sharpen their focus” during the upcoming 2013-14 fiscal year.

Thongsing made the statement at the close of a national meeting in Vientiane to discuss the 2013-2014 socio-economic development plan.

The country’s debt now stands at 29.8 per cent of GDP. Thongsing said the government would delay paying money owed to contractors carrying out public projects. This would take the strain off the country’s financial and currency concerns. Meanwhile, the finance sector should “rigorously collect” all sources of revenue owed to the government, he added. Salary payments to civil servants have also been delayed.

“Any projects that have not been approved by the National Assembly, as well as those where the government owes money to private contractors, will not be allowed to continue,” the prime minister said. However, it would be “acceptable” for these projects to obtain funding from sources other than the government, he said.

Thongsing also requested that no new government projects be initiated in the 2013-14 fiscal year. This would include the construction of new offices and projects that do not directly contribute to productivity. The government will also not consider payments to projects authorised after 2011.



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Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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