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
“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.
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,