MoF goes ahead with pilot salary payment through bank
(KPL) The Ministry of Finance will start paying salaries to their officials and staff through the banking system next month with an aim to speed up the monetary circulation in proportion with the current economic growth.
The Ministry of Finance will be the first to go with the pilot payment of salaries through the banking system set to take effect on 1 October.
Civil servants under the Ministry of Finance at the central level and in the provinces across the country, including two finance schools in the northern Luang Prabang province and in the southern Champassak province, will get paid on the same day.
A memorandum on the agreement was signed in a ceremony held at the Ministry of Finance on 18 September by Mr. Sanya Praseuth, Deputy Cabinet Director of the MOF, and Mr. Onekeo Damlongboun Deputy Director General of the Banque pour le Commerce Exterieur Lao (BCEL)..
The signing was held in the presence of Minister of Finance Somdy Douangdy and officials of both parties.
The salaries of MOF officials will be transferred to their BCEL accounts, thus enabling them to withdraw from all BCEL’s branches.
Also the participants witnessed an official opening of the BCEL’s ATM located in front of the Ministry of Finance.
The introduction of the system is held a historical event of the finance-banking sector that is in conformity with the current economic growth. The new system is held to be better and faster than the old one.
At the current pace of economic growth, and the shift towards the state-administered mechanism of market economy the government sees the payment of salaries in cash incompatible with the realities.
The new way of salary payment to personal bank accounts is viewed to be more suitable, accelerate the monetary cycle, timely payment, control money circulation in the system, and thus enhancing the GDP..
This system will be put on a trial basis with the Ministry of Finance to go ahead..
