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Lao gov't to enable SMEs to access more finance
Source: Xinhua   2018-06-28 11:20:06

VIENTIANE, June 28 (Xinhua) -- The Lao government cabinet has announced improved policies to enable small and medium enterprises (SMEs) to access more finance to grow their businesses and boost production.

The announcement was the outcome of the cabinet's monthly meeting for June convened this week at the Prime Minister's Office in Lao capital Vientiane, local daily Vientiane Times reported on Thursday.

Chaired by Lao Prime Minister Thongloun Sisoulith, the cabinet agreed to amend the Prime Ministerial Decree on the SME Promotion and Development Fund in order to improve policies, mechanisms and tools for the effective development of SMEs.

The government will scrutinize and prioritize potential SMEs eligible for promotion.

To increase small businesses' access to finance, the government announced the expansion of the SME Promotion and Development Fund. Meanwhile, the meeting agreed to encourage state-run commercial banks to mobilize deposits for lending to potential SMEs.

The move came after reports emerged that despite SMEs accounting for more than 90 percent of registered firms in Laos, bank loans released for SMEs were very limited, leaving smaller producers struggling to secure finance to grow their businesses and expand production, said the report.

Given the significant role SMEs play in the country's economy, the Lao government has attached great importance to their development.

Prime Minister Thongloun Sisoulith told the National Assembly (NA) recently that promotion of SMEs' production is among eight core measures the government is pushing to boost growth.

The cabinet meeting also agreed to work out and extend more bank credit to farmers to fund their activities and boost agricultural production. The credit is expected to be released by banks at appropriate interest rates. The cabinet pledged to take immediate action to inspect and remove barriers, which hinder SME operations and farming production.

Editor: ZD
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Lao gov't to enable SMEs to access more finance

Source: Xinhua 2018-06-28 11:20:06
[Editor: huaxia]

VIENTIANE, June 28 (Xinhua) -- The Lao government cabinet has announced improved policies to enable small and medium enterprises (SMEs) to access more finance to grow their businesses and boost production.

The announcement was the outcome of the cabinet's monthly meeting for June convened this week at the Prime Minister's Office in Lao capital Vientiane, local daily Vientiane Times reported on Thursday.

Chaired by Lao Prime Minister Thongloun Sisoulith, the cabinet agreed to amend the Prime Ministerial Decree on the SME Promotion and Development Fund in order to improve policies, mechanisms and tools for the effective development of SMEs.

The government will scrutinize and prioritize potential SMEs eligible for promotion.

To increase small businesses' access to finance, the government announced the expansion of the SME Promotion and Development Fund. Meanwhile, the meeting agreed to encourage state-run commercial banks to mobilize deposits for lending to potential SMEs.

The move came after reports emerged that despite SMEs accounting for more than 90 percent of registered firms in Laos, bank loans released for SMEs were very limited, leaving smaller producers struggling to secure finance to grow their businesses and expand production, said the report.

Given the significant role SMEs play in the country's economy, the Lao government has attached great importance to their development.

Prime Minister Thongloun Sisoulith told the National Assembly (NA) recently that promotion of SMEs' production is among eight core measures the government is pushing to boost growth.

The cabinet meeting also agreed to work out and extend more bank credit to farmers to fund their activities and boost agricultural production. The credit is expected to be released by banks at appropriate interest rates. The cabinet pledged to take immediate action to inspect and remove barriers, which hinder SME operations and farming production.

[Editor: huaxia]
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