Saravan microfinance project gets funding extension
Saravan microfinance project gets funding extension
A Lao-German microfinance project in Saravan province, which aims to provide better access to finance in the focus districts of Saravan and Laongam, received an extension last week.
Microfinance in Rural Areas - Access to Finance for the Poor was launched in 2009 as part of Germany's contribution to the development of Laos.
The extension was made possible after the government of Australia committed to co-finance the project through the Australian Government Overseas Aid Programme (AusAID). The total provided by the Australian government for this project so far is AU$11.5 million.
Present at the extension ceremony were Saravan provincial Deputy Governor, Mr Siheng Homsombath, Bank of the Lao PDR representative, Mr Phoutthaxay Sivilay, Project Director, Mr Thorsten Fuchs, senior provincial officials and bank staff.
Currently, the project supports 23,000 client accounts with beneficiaries in more than 300 village banks in the provinces of Luang Namtha, Xayaboury, Attapeu, Saravan and Savannakhet, according to Mr Fuchs.
Mr Siheng said the establishment of village banks will enable poor people to have better access to lines of credit.
“They now have the opportunity to start profitable businesses and get easier access to funds in emergency or difficult situations,” he stressed.
Meanwhile Mr Phoutthaxay said microfinance plays a significant role in the development of Laos. “The banking sector is growing rapidly in Laos among both state owned and private banks.”
He said village banks are an integral part of the financial system as they provide access to financial services in more remote places where it would otherwise be impossible.
Considered to be an effective model of financing, the project is being undertaken by the governments of Laos, Germany and Australia, supported by the private partner MMG LXML Sepon.
The project is jointly implemented by the Bank of the Lao PDR and the German Agency for International Development (GIZ) with a commitment to improving access to financial products through national regulations and local training and support.
vientiane times
