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Microfinance in rural areas access to finance for the poor

August 12, 2014

Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) Country: Lao People s Democratic Republic Lead executing agency: Bank of Lao PDR Overall term: 2011 to 2014 Project Status - Active Project Phase: Execution Context: Laos is a sparsely populated country. Of its six million citizens, fewer than one million live in the capital of Vientiane or the provincial towns, with the majority living in rural areas. Many of them have poor access to basic services such as schools, health centres or financial institutions. Due to the small number of inhabitants, some district towns have no branches of the commercial banks, as these find it uneconomical to operate on such a small scale. Because there are no banks within reach, rural people are often unable to take out loans with which to tide themselves over in an emergency or expand their businesses; nor can they deposit their money in a safe place. Objective: Private households, small businesses and micro-enterprises in remote rural areas of Laos are better able to participate in the local economy due to their increased access to basic financial services. Approach: The project works at macro, meso and micro levels to improve access to finance for poor people in Laos. At the macro level it advises the Bank of Lao PDR on its policies for financial inclusion; at the meso level it supports various microfinance associations; and at the micro level it promotes basic financial services through an ecosystem of community-managed savings and loan funds (village banks). The village banks are supported by regional network support organisations, which are put in place by GIZ with a mandate to ensure the banks long term viability while also maintaining their own financial viability.

Project completion date : 2014-12-31 12:00:00

Major organization : BANK OF LAO PDR

Address : Xieng Nyeun, Vientiane

Country :Lao People's Democratic Republic

Financier : Deutsche Gesellschaft fÜr Technische Zusammenarbeit (GTZ) GmbH,

Financier address : GTZ(Deutsche Gesellschaft fÜr Internationale Zusammenarbeit) Friedrich-Ebert-Allee 40 53113 Bonn, Germany Phone: +49 228 44 60-0

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Source: TendersInfo (India)

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