Lao, Vietnamese policy banks enhance cooperation
Lao, Vietnamese policy banks enhance cooperation
The state-owned Nayoby Bank has signed a memorandum of understanding (MOU) with the Vietnam Bank for Social Policies to enhance cooperation.
Nayoby Bank Director General Mr. Bualong Xayavong and Vietnam Bank for Social Policies Director General Dr Ha Thin Hanh signed the MOU at the Lao Plaza Hotel in Vientiane yesterday, laying the foundation for continued cooperation.
Under the MOU, the two banks will facilitate exchange visits of staff and management twice a year, allowing for the sharing of knowledge and discussion of ways to secure sustainable operations and deliver the best services to bank customers.
Staff at Nayoby Bank hope to learn from their Vietnamese counterparts in the areas of administration and personnel management, mechanisms for the release of loans to families, enterprises and services, and ways to manage debt and investment risks.
For their part, staff at the Vietnam Bank for Social Policies would like to learn from their Lao counterparts in the areas of fund mobilisation, organisation structure, the release of loans and investment policies to customers.
The Vietnamese bank has agreed to provide financial support for the exchange visits, according to the MOU.
Cooperation between the two state banks is the fruit of special comprehensive cooperation between Laos and Vietnam.
Nayoby Bank was established in 2007 to provide low interest loans for farmers and businesspeople in the 47 poorest districts around the country.
The bank's interest rates on loans currently stand at 7 percent per annum for one year loans, 8 percent per annum for one to three year loans, and 10 percent per annum for loans over three years.
The bank has lent 885 billion kip to boost commercial production in both poor districts and enterprises since its establishment.
The bank currently has six branches and 46 service units. Most of the service units are located in the urban centres of the 47 poorest districts, leaving a number of poor villages in remote areas without easy access to banking services, Mr Vouthi said.
The Vietnam Bank for Social Policies was established in 1995 as a subsidiary of the Vietnam Bank for Agriculture and Rural Development. It became an independent policy bank in 2002.
It has evolved from a group of 500 staff into the largest policy and microfinance institution in Vietnam, and now has 7,809 qualified staff serving several millions of poor or low-income households through its lending schemes and other microfinance services.
vientiane times
