Import-export company asks for more capital, stops fundraising
Import-export company asks for more capital, stops fundraising
The PS Agriculture and Industry Promotion Import-Export Company has asked the government to increase its registered capital for the purposes of business expansion.
The company's manager, Mrs Souknaly Thepsymuang, delivered the information at a press conference in Vientiane last Friday, attended by Deputy Director of the Vientiane Industry and Commerce Department, Ms Vanmany Phimmasarn.
Mrs Souknaly said the company is now asking the government to increase its registered capital from 900 million kip to 50 billion kip.
The proposal is being considered by the Vie ntiane Industry and Commerce Department.
Mrs Souk naly said the company was not attempting to raise money or encouraging customers to deposit money with the company, saying they were not involved in the credit business like banks and other financial institutions.
The company will stop fundraising to ensure that its business operations are correct and in keeping with the law. If any person or agency encourages people to deposit money with the company by o ffering 6 percent interest, the company will not be responsible for their actions, she said.
PS Agriculture and Industry Promotion Import-Export Company registered as a business enterprise in May 2012, with registered capital of 900 million kip.
The company is allowed to operate 12 categories of business and three types of business: agriculture and livestock breeding promotion, bottling of drinking water, and the import and export of consumer goods.
The company's offices are located in Chommany village, Xaysettha district, and it has a project site in Paksarp village, Xaythany distr ict.
The PS Agriculture and Industry Promotion Import-Export Company previously encouraged people to pay into a fund run by the company for the purposes of agricultural and industrial business expans ion.
Those who pay into the fund are promised a monthly interest rate of 4 percent. A bonus of 24 percent will be paid to those who maintain their deposit for a year, bringing the total projected return to 72 percent.
The Lao Securities Commission Office has recently advised people considering maki ng deposits with financial institutions to make a careful assessment of the situation before going ahead.
Various financing companies in Laos are encouraging people to deposit money with them by offering a higher rate of interest than that provided by banks. But despite the glowing promises of financial gain made by such companies, their long-term viability is uncertain, the securities commission warned.
Only the five companies registered on the Lao Securities Exchange are able to solicit deposits from people legally.
They are the EDL Generation Public Company, Banque pour le Commerce Exterieur Lao Public, Lao World Public Company, Petroleum Trading Lao Public Company, and the Souvanny Home Centre Public Company.
