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IFC Promotes Greater SME Access to Finance through a Lending Workshop in Lao PDR


In Hanoi, Vietnam:
Chu Van Anh

Phone: +844 3937 8745

E-mail: canh1@ifc.org


Vientiane, Lao PDR, May 24,—IFC, a member of the World Bank Group, is helping micro, small, and medium enterprises in Lao PDR 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 pledge for traditional loans. IFC, the Lao Bankers Association and the Ministry of Finance’s State Asset Management Department are hosting workshops from May 24th to May 26th among banks to boost lending with moveable collateral, such as factory equipment, timber, tractors, and other inventory.

Over 90 loan officers and university lecturers learned about credit analysis and lending principles during the three-day training session. The program delivered in-depth knowledge and skills to help participants effectively analyze credit for commercial lending, including lending against moveable assets.


“The training will equip lending practitioners with the necessary professional knowledge of commercial lending to enable them to practice their job more effectively, helping increase the efficiency in approving loans in Lao PDR,” said Kaseumsy Phommavongsa, Director General, Ministry of Finance’s State Asset Department.


IFC’s experts will share their knowledge in fundamental banking principles, risk management, macro and business risk analysis, financial statement analysis, cash flow analysis, financial projection, 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 movables lending in the country,” said Phongsavanh Phomkong, IFC’s Head of Office for Lao PDR. “Our main goal is to help build the capacity of the Lao banking sector to be ready to lend against movable assets, which will bring financing and growth opportunities for both enterprises, particularly SMEs, and banks, for the benefit of the entire country.”

 
This training program is part of a series of capacity building activities to boost moveable assets-based lending in Lao PDR in 2016. The program is delivered in partnership with Canada, Japan, and Switzerland
.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org.

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