

Establishing the Lao Credit Guarantee Facility

Company
Business sector / Field of activity
Economic Development and Finance
Countries
Laos
Client
WB
The project assists Lao PDR's MSMEs and financial sector in recovering from the negative impacts of the COVID-19 pandemic by providing long-term funding sources for banks to offer long-term credit to MSMEs. It establishes a Credit Guarantee Facility (CGF) to support banks in financing MSMEs, following World Bank principles tailored to the Lao context, and strengthens the MSME Promotion Agency’s (MSMEPA) ability to implement policies that enhance access to finance. The project is executed in two phases, focusing first on designing a comprehensive business plan for the CGF and then implementing it to ensure sustainable operations and recovery for MSMEs and the banking sector.