IFC, a member of the World Bank Group is increasing access to SME finance in Lao PDR by fostering a business enabling environment and developing market solutions for serving SMEs.
According to the release, SMEs make up 99 percent of total enterprises and over 80 percent of the workforce, however they are confronted with a financing gap of $1.2 billion.
Recently, IFC, in collaboration with the Bank of Lao PDR, held a workshop on ‘Financial Solutions for Small and Medium Enterprises in Lao PDR’ to underscore the need for a vigorous financial infrastructure and a favorable operating environment.
“Financial institutions play an important role of allocating capital efficiently to ensure that with sufficient financing, businesses, especially SMEs, can contribute towards the growth of a country’s economy,” said Vivek Pathak, IFC Director for East Asia and the Pacific. “Advancing sector policy reforms will enable financial institutions to grab new market opportunities, thereby helping them and their clients grow.”