Livestock breeding highest portion of loans
Livestock breeding highest portion of loans
Local farmers' livestock breeding enterprises made up the largest value of loans at Nayoby Bank in the first six months of this year.
According to Nayoby Bank, they had issued loans worth more than 466 billion kip (58.25 million) to local producers in the first six months of this year; this is about 48 percent of this year's plan, which was set at about 977 billion kip (US$ 122.12 million).
They reported that the 466 billion kip included over 192 billion, which was disbursed for livestock breeding, as well as crop plantations at more than 183 billion kip.
The service sector was above 71 billion kip, handicraft production was about 11 billion kip and the processing industry stood at around 8 billion kip.
“The livestock loans were at a higher value than other sectors because people in the provinces were now showing interest in the sector,” a bank official said.
The bank had issued loans to promote the production sector for both local supply and export.
With the low interest rate loan policy, the 466 billion kip included about 352 billion kip which was issued for poor people in 68 districts. This is about 95.5 percent of the total poor districts in the country.
The bank expects to distribute an additional amount of more than 511 billion kip (US$ 63.87 million) in loans for the last six months of this year, including around 370 million kip for poor people in 68 districts.
The bank disbursed loans worth over 1.77 trillion kip (US$ 221.25 million) last year.
Currently there are more than 30 banks in Laos, including representative banks from overseas.
The banking sector plans to issue loans worth more than 6.5 trillion kip (US$812.5 million) in the 2014-15 fiscal year in order to promote small and medium enterprise s (SMEs), according to the Planning and Investment Ministry's report on the 2014-15 social economic development plan.
In the 2013-14 fiscal year, the sector planned to lend out around 5.623 trillion kip (US$702.87 million) in loans, the report noted. Nayoby Bank aims to help reduce poverty in the country. The officials nationwide are working to develop their communities, so assistance from all sectors concerned is central to improving the living standards of local people.
It is playing an important role by providing credit for people who lack the funds to start their own businesses, particularly in agricultural production, animal husbandry, handicrafts and other services.
It is a special bank and its status is that of a non-profit legal entity under the management of the Bank of the Lao PDR.
It has the job of providing credit via government loans to farmers in the poorest districts and promotes socio-economic development in focal areas as defined by the government.
It is supporting commercial production in the areas of agriculture and forestry, cottage industry, handicrafts, as well as services in rural areas in order to contribute and support commercial production, rural development and poverty eradication.
The bank hopes to continue providing credit in order to further the socio-economic development plan of the district and improve villagers' living standards.
vientiane times
