Rural microfinance project launched in Savannakhet
Rural microfinance project launched in Savannakhet
The German Development Cooperation project for microfinance in rural areas – access to finance for the poor officially opened its extension to Savannakhet province on Wednesday, according to the Bank of Lao PDR.
The project will run in Phin and Sepon districts, thanks to the decision by the Australian government to co-finance the project.
The ceremony was attended by Vice Governor of the Bank of Lao PDR, Mr Sonexay Sithphaxay along with Savannakhet provincial authorities and representatives from the implementing agency GIZ.
Mr Sonexay stressed the importance of setting up sustainable institutions. He also urged that local communities, project staff, experts and local authorities work closely together to ensure a quick transfer of knowledge. The project supports the establishment and growth of village banks and builds their capacity to continue operating sustainably after project support ends.
Phin district authorities expressed their sincere thanks to the governments of Germany and Australia for their support. The local authorities emphasised that local and rural economic development is needed so that poor villagers can rise above poverty.
Village banks are amongst the organisations that can support this development. The authorities requested the villagers of Sibounheuang to actively use their village bank and manage it according to the rules and regulations agreed upon.
During the opening ceremony 70 percent of the local households joined the village bank, and 174 village bank accounts were opened.
The project for microfinance in rural areas – access to finance for the poor was set up in 2009 as part of the German contribution to the development in Laos. It is implemented by GIZ in cooperation with the Bank of Lao PDR.
Project facilitators are committed to improving the conditions for improved access to financial products and financial literacy through national regulations and local training and support.
The project currently supports more than 26,000 remote rural clients in 335 village banks in the provinces of Luang Namtha, Xayaboury, Attapeu, Champassak, Saravan and Savannakhet.
It received additional funding from MMG LXML Sepon in 2010 in order to support village banks and their network support organisation in Vilabouly district, Savannakhet province.
In 2013, the Australian government granted additional funds through the Laos-Australia Rural Livelihoods Programme (LARLP).
LARLP is an initiative that covers various aspects of rural development with microfinance being one of those facets. With the official start in Phin district this week, the microfinance project is now operational in all of LARLP's six target districts in the provinces of Champassak, Saravan and Savannakhet.
vientiane times
