IFC helps BFL increase lending to women-owned businesses

Apr 20th at 14:39
20-04-2015 14:39:45+07:00

IFC helps BFL increase lending to women-owned businesses

International Finance Corporation (IFC), a member of the World Bank Group, has signed an investment and advisory services agreements with Banque Franco-Lao (BFL) to boost financing to small and medium enterprises (SMEs) owned by women in Laos.

The agreement was signed in Vientiane on Thursday by BFL Managing Director Mr Guillaume Perdon and IFC's Head of Office Mr Phongsavanh Phomkong, witnessed by senior bank officials and representatives from the Lao Women's Business Association.

It is hoped that the deal will enable BFL to provide much-needed funds to help women expand their businesses and create more jobs for them.

In Laos, women own 31 percent of small and medium enterprises but only 16 percent have a loan or overdraft because they tend to use savings or informal funding to fulfil their financing needs, and this hampers the growth potential of their businesses, according to a press release.

“BFL is seeking to grow its loan portfolio to Lao women-owned SMEs but lacks adequate experience to assess the risk profile of the asset class in the Lao market,” said the Managing Director of BFL Mr Guillaume Perdon recently.

With IFC's support, BFL – set up in 2008 by French bank Bank Populaire and Lao bank BCEL – aims to triple its women-owned SME loan portfolio from US$13.5 million in 2014 to US$37 million in 2017.

Under the agreement, IFC will provide a risk guarantee for BFL's portfolio of loans to women SMEs in Laos; the facility is expected to reach US$10 million, with BFL and IFC sharing the potential risk arising from BFL's future portfolio of credit to women's businesses.

According to the agreement, IFC will also help BFL to assess its risk growth strategy, supporting the lender in tracking and monitoring loans provided to women businesses, which make up 46 percent of the bank's portfolio, and their financial behaviours.

Meanwhile the IFC's Office Head Mr Phongsavanh Phomkong said, “The agreement between IFC and BFL is an innovative way to mobilise funding from private banks to support small and medium enterprises in Laos.”

He noted that this was the first financing facility with a specific focus on women enterprises in Laos and it will also help to expand access to credit for women-owned businesses to support their growth and generate more jobs.

The combined investment and advisory services to BFL comes from the Women Entrepreneurs Opportunity Facility – seeded by IFC and the Goldman Sachs Foundation.

It is the first-ever global finance facility dedicated exclusively to financing small and medium businesses owned and run by women in developing countries and aims to enable 100,000 women to access capital.

vientiane times



NEWS SAME CATEGORY

More finance institutions, more profit for SMEs

The existence of more banks and finance institutions for use by small business operators will help to spur growth and competition in the financial services sector...

New Lao-Viet Bank multipurpose complex underway

Work has begun on a new centre incorporating accommodation and training facilities for Lao-Viet Bank in Vientiane, with a groundbreaking ceremony taking place last...

Banks confident of enough money for long holiday

Most of the banks in Laos are confident they have enough money to meet the heavy demand for it during the Pi Mai Lao (Lao New Year) celebrations next week.

JDB celebrates 25 years growth

The Joint Development Bank (JDB) recently celebrated its 25th anniversary of growth and expansion at Don Chan Palace hotel.

Vietinbank assists Attapeu province

Vietinbank Laos Branch is proving not only benefits for customers but also for society by contributing to worthy causes. Apart from being a dependable partner in...

Bank of China opens branch in Vientiane

The Bank of China has opened a branch in Vientiane to boost economic exchange between China, Laos and other Asean countries, while particularly contributing to...

JDB opens service units in Huaphan, Xieng Khuang

The Joint Development Bank (JDB) is continuing to branch out, opening new service units in Xamneua district, Huaphan province and Phonesavan town, Xieng Khuang...

Prudential insurer to open office in Laos

Prudential PLC (“Prudential”), a UK-based international financial services group with significant operations in Asia, the US and UK, has announced that it has been...

New anti-money laundering law to boost business environment

The Lao government is disseminating the new law on anti-money laundering to more effectively deal with this problem and the financing of terrorism ahead of the...

Laos, Myanmar enhance banking cooperation ties

The Bank of the Lao PDR (BOL) and the Central Bank of Myanmar look set to enhance their technical cooperation ties, especially in the fields of currency policy...


MOST READ


Back To Top