Finance Minister Santiphab Phomvihane (left) exchanges the signed documents with the company’s Chairman, Dr Chanthone Sitthixay, after signing the shareholders agreement.

Govt, PTL Holding co-invest in Lao Bullion Bank

The government of Laos, represented by the Ministry of Finance, on Wednesday signed a shareholders’ agreement with PTL Holding Co., Ltd. to establish Lao Bullion Bank as a reserve fund for the nation’s economic and financial system.
The establishment of the Lao National Bullion Bank reflects a shared commitment to the government’s vision of building gold reserves and enhancing the country’s financial stability. It is anticipated that the bullion bank will unlock financial potential, support monetary and fiscal policies, strengthen the Lao Kip currency, facilitate fundraising, and improve liquidity for effective national development.

Establishment of the Bullion Bank will contribute to the implementation of the vision of the Party and government in terms of maintaining and creating financial and economic stability that will unlock the potential of the national finance system and the treasury, strengthen the value of the Lao kip, and boost fund raising and national liquidity.
This will also contribute to the development of the nation in order to deliver maximum benefits to the economy.
Stating at the agreement signing ceremony, Minister of Finance Mr Santiphab Phomvihane said “The establishment of Lao Bullion Bank Limited is a remarkable translation and implementation of the direction and vison of the Party and the government of Laos, particularly the implementation of the socio-economic development plan.”
This will help to address economic and financial disruption so that the current economic challenges can be overcome, he added.

Minster of Finance, Mr Santiphab Phomvihane, delivers his speech at the ceremony for signing the shareholders agreement on Wednesday.

Chairman and Founder of the PTL Holding Co Ltd, Dr Chanthone Sitthixay, briefs the gathering about the cooperation between the government and his company to establish the Lao Bullion Bank.

“Gold is a valuable asset that plays a significant role in the economic system and in building confidence in the financial sector and the stability of the socio-economic system,” Mr Santiphab said.
The minister also said that gold is an essential factor in stabilising currency exchange rates, the price of goods, the rate of inflation, and other vital aspects of the economy at both the domestic and international levels.
“The economy of Laos has heavy reliance on imports and is currently is undergoing difficulties and uncertainties in the global economy and finance, and the instability of commodity prices,” he said.
Mr Santiphab said the establishment of the bullion bank in Laos will enable a standardized market in trading and investment in gold in the regional and global markets.
“This move is a step forward on the path to implementing the Party’s intention to transform Laos into an independent economic model with a self-sustained economy through the utilisation of existing resources in the country,” he added.   
The Chairman and Founder of PTL Holding Co., Ltd., Dr Chanthone Sitthixay, said the establishment of Lao Bullion Bank Limited is determined by the Party and government to create an accretion source of gold to ensure the security of the treasury and the country’s finances, and stabilise the economy.

Deputy Prime Minister and Foreign Minister, Mr Saleumxay Kommasith, other ministers, deputy ministers and honourable guests from foreign embassies and international organisations gathered for a group photo at the ceremony.

“This initiative will help to create an internationally standardized storage of gold in the bullion bank. This will attract holders of gold and legal entities in both Laos and foreign countries to deposit their gold and use other services provided by Lao Bullion Bank Limited,” he said.
“Our company is pleased and honoured to have been given the right to partner with the government in the development and management of the bank and we promise to do our best by utilising our long-time experience and knowledge in this area,” he added.
The bank is expected to begin the Phase 1 of operation by next month and a full operation of services in late November this year, Dr Chanthone informed the gathering.
Laos is one of the leading countries in the world in terms of the mining and production of gold, ranking 3rd in ASEAN and 6th in Asia.
Preliminary surveys estimate the presence of about 500 to 1,000 tonnes of unmined gold reserves with the forecasted amount range from 500 to 1,000 tons which once verified by international organizations specialized in mineral survey and exploration, these reserves could elevate the national reserve’s value to between USD 50 billion and USD 76 billion.
This will help to increase financial liquidity and capital resources for the development of strategic projects in the fields of infrastructure, agriculture and industry, and is important for building a strong foundation and stability for Laos’ economic system.
The establishment of the bullion bank will facilitate the management of gold in Lao PDR to meet with international standards of the London Bullion Market Association (LBMA) and become internationally competitive through various products and services, including gold savings, gold loans, credit facilities, storage, and gold certification. These offerings will enhance the gold industry’s role and support its supply chain in Laos, creating a new image for the country in the international financial market as well as attracting domestic and international investments leading to continuous expansion of the country’s Gross Domestic Product (GDP).
The signing of the documents by Finance Minister Santiphab Phomvihane and PTL Holding’s Chairman and Founder Dr Chanthone Sitthixay was witnessed by senior government officials and company representatives.
Deputy Prime Minister and Foreign Minister Mr Saleumxay Kommasith and other ministers, deputy ministers from line ministries, and foreign ambassadors and diplomats based in Laos were also invited to the signing ceremony.

ByTimes Reporters
 (Latest Update August 9, 2024)