The Lao Development Bank (LDB) and Agricultural Bank of China (ABC) has signed three agreements to offer new services to businessmen who trade across the Laos - Chinese border.
The agreements were signed in Vientiane on Mar. 23, after significant delays since the end of last year after ABC could not continue without prior Chinese government approval, which was recently granted.“We expect to begin our business services in the next three months,” Head of the LDB Credit Management Division Sengchanh Phanmixay was quoted by the Vientiane Times as saying.
The agreements include assigning positions for offices and the opening of mutual accounts and trade payments through Internet banking, LDB Managing Director Bounta Daravy said.
Once services are launched, they will help small to medium-sized enterprises and traders reduce the risk of carrying and using cash at the border. Services in border trading areas will also attract more business for the LDB.
This service is currently planned exclusively for the border, but may be extended outside the country if border operations continue smoothly over a sustained period. The bank plans to open a representative office in China soon./.