Laos plans to boost access to finance
Laos plans to boost access to finance
Laos plans to assist financial institutions so they can better service their customers and help them access finance in order to address poverty reduction and socio-economic issues.
People in some rural areas and business entrepreneurs are still finding it difficult to access loans or cope with the high interest rates on loans, Deputy Governor of the Bank of Lao PDR (BOL), Mr Sonexay Sitphasay said at the meeting in Vientiane yesterday.
The meeting on Lao PDR Access to Finance Challenges and Opportunities and a discussion with Deputy Governor of the BOL, and the Access to Finance Donors Organisations Network, invited representatives from different donor organisations including the Asian Development Bank, Agence Francaise de Development, Australian AID, German International Cooperation, Microfinance Association and World Bank.
The meeting was organised by the International Financial Corporation under the World Bank Group in cooperation with the BOL.
The country is currently meeting different challenges with financial institutions and microfinance as the supply of information on finance is still not clear and the knowledge of Lao technical staff is limited.
“To respond to these challenges, the Bank of Lao PDR is cooperating with German International Cooperation to research the information and expects to clarify these issues this year,” BOL Senior Official Dr Akhom Praseuth said.
“The bank is also drafting a strategy plan and formulating a roadmap to develop stronger financial institutions and microfinance providers so they can offer better service by helping them to improve the system, provide consultation, as well as open opportunities for foreign investors in this sector,” he explained.
“People in different areas are still confused about the different types of finance available and the assistance offered by several projects due to no close communication between the relevant sectors and develop ment partnerships,” Mr Akhom said.
“This meeting will help each organisation, including the government of Laos and international agencies, to boost understanding between each other despite different methods of operation and it would be helpful to arrange responsibilities for each organisation,” Mr Sonexay commented.
“To make operating methods come together for development, we need more cooperation and coordination with each other, especially in technical assistance and financial support, he added.
The country currently comprises more than 30 commercial banks and over 60 financial institutions. The government believes this will increase in the next few years.
vientiane times
