BDP micro-finance helps to develop business in Laos
BDP micro-finance helps to develop business in Laos
The BDP Micro-Finance (Non Deposit Taking Micro-Finance Institution for Business Development and Promotion) is available for loan credit supply after the institution officially launched in Vientiane yesterday.
The institution is a joint venture between Laos and Japan with registered funds of 3.3 billion kip, according to BDP Micro-Finance CEO, Ms Chansada Sonnasinh, who was speaking at the ceremony.
BDP's target customers include small and medium enterprises, traders, farmers and permanent staff.
Its loans will be capped at less than US$1,000 (3 - 7.5 million kip) with interest repayments set at 30 percent per annum, or 2.5 percent per month for between 12-18 months.
This institution is opening when the country is developing and development requires a lot of funding, said Director General of the Financial Institution Supervision Department at the Bank of the Lao PDR, Dr Akhom Praseuth.
Laos will integrate with the Asean Economic Community by the end of this year so this will be a challenge for the operation of the institution, he commented.
However, the government, esp ecially the Financial Institution Supervision Department, will provide good cooperation and promotion for every micro-finance institution in Laos in regards to training and also compl ying with the regulations.
The government aims to help people source access to funding and assist the institutions to operate their businesses in a sustainable manner, said Dr Akhom.
He announced that this institution plans to operate its business in line with the regulations and policies of the government. Currently in Laos there are different micro-finance institutions operating illegally, which is a major issue that the government is seeking to address, Dr Akhom said.
Micro-finance is an important component to developing the business sector in Laos, especially small and medium enterprises, said the Chairman of the Board of Directors, Mr Dethphouvang Moularat.
He believed that through cooperation from the government and local authorities as well as the good management of the board of directors, BDP Micro-Finance will develop to operate successfully in society.
The ceremony was attended by officials from the relevant government organisations along with local authorities.
