Governor, Bank of Lao PDR Khamphounvong Phouphet of Laos

Mr Phouphet said Laos would also allow foreign investors to hold up to 49% in state-owned companies.

Mr Phouphet said Laos was concerned about the potential risks of liberalising its economy and capital markets, including possible foreign-exchange fluctuations or share speculation in its new stock market.

Mr Phouphet said Laotian companies currently depended on bank loans for funding needs.

Phouphet said that the crisis would not affect financial institutes in the country.

Mr Phouphet said the government was closely monitoring preparations.

Phouphet said inflation in June this year reached the lowest in several years, thanks to the many investment projects.

Phouphet said the bank will continue selling Thai baht through the commercial bank until the Thai currency stabilises, or the company can buy Thai baht from the central bank directly; however, traders will need official import documents to do this.

Thai stock regulators to help develop the Lao bourse.