Posted at 02:56h
in
EOI_LAFF II,
News
VIENTIANE (Vientiane Times/ANN) – The grant of 0.8
million euros was provided through Germany’s KfW Development Bank.
Germany has committed 0.8 million euros for the Lao
Access to Finance Fund (LAFF) to strengthen capacity building and training of
the Bank of the Lao PDR (BOL) and partner banks.
The grant in the amount of 0.8 million euros was provided
through Germany’s KfW Development Bank.
The handover ceremony took place on Tuesday at the BOL in
the presence of Director General of Banking Operation Department, BOL Ms
Fongchinda Sengsourivong, KfW Country Director Lorenz Gessner and a
representative of Ministry of Finance.
“The additional grant for the Lao Access to Finance Fund
will further strengthen the banks’ capacity and quality participating in the
fund which will have in turn positive effects on the overall services provided
by the banks to the private sector in order to develop and expand,” Fongchinda
said.
“The consulting services for delivering training and
capacity building to the BOL and the partner banks are vital components for
reaching the overall and specific objectives of the programme, which is the
support of the commercial banking sector in Laos in providing sustainable and
needs-based financial services for poor households and micro, small and medium
enterprises (MSME) in rural areas,” cited KfW Country Director Lorenz Gessner.
According to KfW, the first bank participating in the
LAFF is ACLEDA Bank Lao, which has successfully disbursed more than EUR 3
million over the last two years to MSME in Laos with an average loan size of
2,600 euros.
The programme objective is to facilitate the access of
MSME to long-term finance in the domestic financial sector by offering eligible
partner banks a target group oriented refinancing facility, which is aligned
with the existing business environment of the local banking system.
The rationale of the focus on MSME is the expected above
average impact on poverty alleviation through job creation and income
generation.
KfW Development Bank is Germany’s leading development
bank and an integral part of KfW. It carries out Germany’s Financial
Cooperation with developing countries on behalf of the Federal Government.
It goals are to combat poverty, secure peace, protect the
environment and the climate and make globalisation fair. KfW is a competent and
strategic advisor on current development issues.
