Oudomxay banking sector strongly supports SMEs
Oudomxay banking sector strongly supports SMEs
The Oudomxay provincial banking sector is focused on disbursing loans mainly for goods production and on reducing the shortage of finance for small and medium d enterprises (SMEs), production groups and family businesses.
The sector has played an important role in providing loans that encourage the development of production operations and the output from agriculture, industry and service businesses.
The sector has disbursed loans worth more than 1.22 trillion kip in the first six months of fiscal year 2013-14, according to a recent Oudomxay provincial Planning and Investment Department report.
The se ctors benefitting most included industry and handicrafts which received about 58.25 billion kip, construction and production equipment assembly about 307.66 billion kip, agricultural production around 251.36 billion kip, trade around 453.34 billion kip, transportation about 35.32 billion kip and services about 112.34 b illion kip.
With loan support from the banking sector, the province can now promote crop production on up to 83,959 hectares and achieve crop yields of more than 302,800 tonnes in the first six months of this fiscal year, which is an increase of about 21 percent over the same period last year, the department reported.
The main crops grown were beans, maize, watermelons and industrial crops; and businesspeople also invested in livestock breeding for both local supply and export markets.
The report noted that currently social and economic development in Oudomxay is growing as is the goods production output of the local people, including the production of foods such as meat at more than 4,000 tonnes, fish over 2,750 tonnes and eggs over 250 tonnes.
To guarantee provincial economic growth of about 11 percent per year and to ensure that income per capita is at US$1,100 or 8.8 million kip per person per year, loans from the banking sector have required disbursements of at least 562.91 billion kip, which covers about 39 percent of total investment in the province.
A loan granted has to be used mainly for goods production in SMEs, production groups and family businesses.
In the first six months of the fiscal year, the sector made loans of over 1.22 trillion kip; and it also attracted increases to deposit accounts of more than 1.02 trillion kip.
vientiane times
