IFC promotes credit analysis for business lending
IFC promotes credit analysis for business lending
The International Finance Corporation (IFC), a member of the World Bank Group, is helping micro, small and medium ente rprises in Laos gain access to credit by promoting loans using moveable assets.
This will allow businesses to obtain much-needed financing to grow, expand and create jobs.
Access to finance is a major constraint to doing business in Laos. Less than 20 percent of small and medium enterprises have access to long-term credit as many do not have real estate to use as a guarantee to obtain a loan.
IFC, the Lao Bankers Association and the Ministry of Finance's State Asset Management Department are hosting a workshop in Vientiane from May 24-26 to encourage banks to boost lending using moveable collateral such as factory equipment, timber, tractors and other inventory.
Over 90 loan officers and university lecturers are learning about credit analysis and lending principles during the three-day training session.
The programme delivers in depth knowledge and skills to help participants effectively analyse credit for commercial lending, including lending against mo veable assets.
The training will equip le nding practitioners with the necessary professional knowledge of commercial lending to enable them to practice their job more effectively, helping to increase efficiency in approving loans in Laos, State Asset Management Department Director General, Ms Kaseumsy Phommavongsa, said.
IFC experts are sharing their knowledge of fundamental banking principles, risk management, micro and business risk analysis, finance s tatement analysis, cash flow analysis, financial projections, loan structuring and monitoring with local financial professionals.
The training will strengthen lending processes and bank performance, which will serve as a foundation for further development in moveable lending in Laos, said IFC's Office Head to Laos, Mr Phongsavanh Phomkong.
“Our main goal is to help build the capacity of the Lao banking sector to be ready to lend against moveable assets, which will bring financing and growth opportunities for both enterprises, particularly SMEs and banks, for the benefit of the entire country,” she said.
The training programme is part of a series of capacity building activities to boost moveable assets based lending in Laos.The programme is delivered in partnership with Canada, Japan and Switzerland.
IFC is working with more than 2,000 businesses worldwide to use capital, expertise and influence to create opportunity where it's needed most.
In FY15, IFC's long term investments in developing countries rose to nearly US$18 billion, helping the private sector to play an essential role in the global effort to end extreme poverty and boost shared prosperity.
