Fund boosts credit line for SMEs
Fund boosts credit line for SMEs
The Small and Medium Enterprise (SME) Development and Promotion Fund next year plans to supply 112 billion kip of credit for SME development around Laos.
The government will contribute 16 billion kip while the fund will issue a 96 billion kip line of credit to c ommercial banks for SME loans, according to the Department of SME Promotion.
Last year, the SME Development and Promotion Fund supplied 14 billion kip in credit to SMEs through the Lao Development Bank.
The fund is also working with the World Bank to implement two projects involving a risk sharing facility for SME finance worth 24 billion kip and technical assistance worth 40 billion kip.
“SMEs are important for socio-economic development and vital for driving the national economy, especially for goods production, services and trading,” Deputy Minister of Industry and Commerce, Mr Siewsavad Savaengseuksa, said last week at the first annual meeting of the SME Development and Promotion Fund.
SMEs created jobs and made profits that improved people's living conditions, he said.
“SME development promotes the creativity of people, domestic production and opportunities for adding value to products through business operation s.”
Better access to finance was a significant factor in the development and expansion of SMEs, as part of the government's efforts to boost the sector's socio-economic development contribution, said Mr Siewsavad.
The fund's goal is to provide financial support to SMEs and improve their access to finance as well as to support other activities related to SME promotion and development.
He believed that after the meeting the fund would be able to put the plan into practice.
Strengthening SMEs is seen as essential for facing stiffer competition ahead of regional integration. To encourage SME business growth for the future, the Department of SME Promotion requires close cooperation from the relevant sectors.
The meeting was attended by Minister of Industry and Commerce, Ms Khemmani Pholsena.
vientiane times
