VIENTIANE, Nov. 14 (Xinhua) -- The Lao government is actively taking steps to resolve the country's ongoing economic and financial difficulties, such as inflation and the depreciation of the Lao currency kip.
The government is seeking funding sources to service its debts on time, especially those owed to foreign countries, Lao national TV on Tuesday quoted Lao Prime Minister Sonexay Siphandone as saying at the ongoing sixth ordinary session of the National Assembly's ninth legislature.
"We have attempted to control foreign exchange rates through a Prime Minister's Order, which has enabled closer monitoring of foreign currencies by government and is channeling more foreign currency sourced from businesses into the banking system," he added.
The government is expanding the services of commercial banks to ensure they meet the needs of the public and is encouraging import and export companies to register and pay the money they earn into the banking system.
The government will keep a close watch on businesses that deviate from authorized foreign exchange rates and impose penalties on those that conduct transactions using different rates.
The government is closely monitoring and regulating prices and service fees that have risen sharply, especially the cost of essential food items such as rice, meat, fish and eggs, said the Lao prime minister.
"We have stepped in to keep the price of rice on sale in Vientiane and some provinces at a lower level, as well as imposing controls on the price of agricultural inputs such as fertilizer, animal feed and seeds, and attempting to limit imports of goods that can be produced here in Laos," Sonexay said.
In addition, the government is trying to curb the illegal import of goods at border crossings and prevent goods from being smuggled into the country.
At the same time, the government is urging Lao producers to boost production so they can export more goods while encouraging the public to buy more Lao products in order to limit imports and reduce the outflow of foreign currency.
The government has also introduced low-interest loans and priority policies on the production of agricultural goods for sale and export. ■
