Strengthening the Lao Access to Finance Fund

16.12.2019

Since 2017, AFC has been the Technical Assistance partner for the KfW-funded Lao Access to Finance Fund (LAFF) implemented by the central bank of Lao PDR - Bank of Lao PDR (BoL).

In this respect, AFC has been providing a framework on LAFF credit appraisal and loan monitoring since September 2019. The objective of this activity is to assist the LAFF management unit of the BoL to further professionalize their funding operations to facilitate on lending support to the Lao SME market through financial institutions. To do so, a rigorous review has been completed focusing on the current procedure of selecting correct and sound financial institutions and the accompanying LAFF monitoring process.
 
Based on this review the technical assistance will support the LAFF management unit with a list of recommendations for improvement on professionalizing and streamlining procedures. Two important recommendations include:

  • implementing a credit appraisal tool on potential financial institutions; and
  • enhancing their monitoring tool.

These two tools will provide support for the LAFF management unit in becoming a more professionally-run wholesale fund.

 

For further information, please contact Jakob Lutz ().