Consulting Services for Capacity Building and Training Measures in the Lao PDR Microfinance in Rural Areas – Access to Finance for the Poor

The aim of the Project is to support the commercial banking sector in Lao PDR in providing sustainable and needs-based financial services for poor households and MSME in rural areas.

In parallel with the loan funding component, capacity development measures are foreseen aiming at qualifying future partner FIs to subsequently access the LAFF as well as to strengthen BoL in its capacities to implement and further develop the LAFF. Besides supporting BoL in the management of the LAFF, the measures prioritize those areas of future partner FIs that require institutional upgrading in order to fulfil the eligibility criteria to receive funds from LAFF, and to deliver high quality lending services to MSME on a sustainable basis.

Component 1: Capacity Building and Training for the Bank of the Lao PDR

  • Support BoL to administer the LAFF and to strengthen banking supervision;
  • Setting up the core business processes (procedures and written policies, job descriptions, sub loan reports, etc.) for the management of the LAFF;
  • Strengthen the capacity of supporting units through targeted training measures in financial analysis, internal audit and control, risk management, financial management, portfolio management, banking supervision, project management and reporting.

Component 2: Capacity Building and Training for Partner FIs

  • Provide basic and advanced training and capacity building to future partner FIs that might be selected in due time during the assignment of the consultant, in order to enable them to qualify for the funding through the LAFF and upgrade their capacities for lending to MSME;
  • Staff trainings to align the partner FI’s operations with the principles of the LAFF;
  • Focusing on the entire credit process cycle from credit appraisal to delinquency management, risk management and internal risk audit;
  • Core training areas will be complemented by additional trainings on accounting, strategic planning, marking, human resource management as well as environmental and social management.