{"id":586,"date":"2019-11-19T02:50:17","date_gmt":"2019-11-19T02:50:17","guid":{"rendered":"https:\/\/laff.org.la\/?p=586"},"modified":"2024-02-11T10:03:21","modified_gmt":"2024-02-11T10:03:21","slug":"summary-introduction-lao-access-to-finance-fund","status":"publish","type":"post","link":"https:\/\/laff.org.la\/en\/2019\/11\/19\/summary-introduction-lao-access-to-finance-fund\/","title":{"rendered":"Summary Introduction \u201cLao Access to Finance Fund\u201d"},"content":{"rendered":"<p><strong>1. <\/strong><strong>Project<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Bilateral\nGerman-Lao Development Cooperation.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Grant funding to\nthe Lao PDR, Ministry of Finance.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Ministry of\nFinance channeled to Bank of Lao PDR to manage (BoL = Project Executive Agency).<\/li><\/ul>\n\n\n\n<p><strong>2. <\/strong><strong>Principal<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Initial principal\nEUR 3.0 million. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Accrued interest EUR\n1.0 million, on separate account. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Additional (2020)\nEUR 6.0 million.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Total (2020) EUR\n10 million.<\/li><\/ul>\n\n\n\n<p><strong>3. <\/strong><strong>Interest income<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Expected annual-interest\nincome (2020): EUR 1.0 million.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>BoL can propose\nusage for its own benefits (e.g. trainings, exposure trips).<\/li><\/ul>\n\n\n\n<p><strong>4. <\/strong><strong>Characteristics<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Project-based<\/strong>: no legal personality, contracting in name BoL<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Wholesale\ndebt-finance facility in LAK<\/strong>: loans\nto banks and DTMFI (PFIs) in LAK<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Market based<\/strong>: <\/li><li>interest rate\ncharged to banks and DTMFIs is in line with comparable liability funding; <\/li><li>No interference\nin PFIs\u2019 credit policies (e.g. selection of MSE-borrowers); <\/li><li>No interference\nif PFIs\u2019 marketing strategies (e.g. type of sectors, locations, pricing of\nloans to MSEs)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Conditional: <\/strong><\/li><li>Strategic interest\nin lending to MSEs, including informal enterprises;<\/li><li>Institutionalization\nof term lending (loans with duration of over 1 \u00bd year duration);<\/li><li>Outside urban\nareas of Vientiane Capital;<\/li><li>Minimum 30% for\nagricultural activities.<\/li><\/ul>\n\n\n\n<p><strong>5. LAFF-<\/strong><strong>Project\nManagement<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LAFF Steering\nCommittee (LSC)<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Mandate:<\/strong> Oversees and signs-off loans to PFIs, and annual\nworkplan and budgets for LAFF\u2019s Management. Requests and receives\nexternal-audit reports.<\/p>\n\n\n\n<p><strong>Composition: <\/strong>Deputy Governor (Chair)<strong>, <\/strong>DG of BOD\n(Vice-Chair), DDG of BOD, DDG of BSD, DDG of FISD.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LAFF Management\nUnit (LMU)<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Mandate:<\/strong> Management of operations, external and internal\ncommunication.<\/p>\n\n\n\n<p><strong>Director: <\/strong>Responsible for effective management in accordance to\nproject\u2019s principles. Reports to LSC. Manages relationship with BSD and FISD\n(see below).<\/p>\n\n\n\n<p><strong>Secretariat:<\/strong> Internal and external communication, the latter\nincluding the logistics of the Call for EoI process; preparation annual\nworkplan and budget. Supports Director.<\/p>\n\n\n\n<p><strong>Loan Allocation\nPreparation subunit: <\/strong>Does financial\nanalysis and due diligence of EoI-applicant banks and DTMFIs. In many ways the\nmost important part of the overall governance and operational structure that\nrequires high-levels of expertise. Prepares credit memorandum for LSC.<\/p>\n\n\n\n<p><strong>Loan Administration and\nReporting subunit<\/strong>: Makes loan\ncontract; issues notifications for installments of interest and principal;\nrequests reports from PFIs; administers the LAFF portfolio and reports on it.\nAnother main part of operations. <\/p>\n\n\n\n<p><strong>6. Involved External Stakeholders<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>BSD and FISD: <\/strong>do repayment-capacity assessment and due diligence\nscreening for and on request of the Director of the LMU based on off-site\nreports and on-site inspections.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>KfW: <\/strong>have to give no-objection to main LAFF-management\ndecisions (e.g. LAFF-lending, annual workplan and budget).<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>External\nConsultant<\/strong>: to be hired by LMU to\nsupport LAFF-management processes, funded from LAFF-interest income<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>External\nAuditor<\/strong>: external audit and\nevaluation reports, to be instigated and received by LSC, funded from\nLAFF-interest income.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>AFC:<\/strong> technical assistance provider.<\/li><\/ul>\n\n\n\n<p><strong>7. Technical Assistance<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LMU Director\nand LAP:<\/strong> financial analysis, due\ndiligence process, Excel-based, with written explanation and in-person\nteaching.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>BSD and FISD\nLAFF-Teams: <\/strong>repayment-capacity\nassessment and due diligence processes<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LMU Director\nand LAR: <\/strong>Excel-based LAFF-loan\nportfolio administration and reporting; loan-contract screening, with written\nexplanation and in-person teaching.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Operational\nManual: <\/strong>Codification management and\noperational processes. <\/li><\/ul>","protected":false},"excerpt":{"rendered":"<p>1. Project Bilateral German-Lao Development Cooperation. Grant funding to the Lao PDR, Ministry of Finance. Ministry of Finance channeled to&#8230;<\/p>","protected":false},"author":7,"featured_media":611,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[35,55],"tags":[],"class_list":["post-586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-35","category-55"],"_links":{"self":[{"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/posts\/586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/comments?post=586"}],"version-history":[{"count":2,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/posts\/586\/revisions"}],"predecessor-version":[{"id":821,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/posts\/586\/revisions\/821"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/media\/611"}],"wp:attachment":[{"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/media?parent=586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/categories?post=586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/laff.org.la\/en\/wp-json\/wp\/v2\/tags?post=586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}