The Chinese government has lending 300USD million to support the development of small and medium-sized enterprises (SMEs) in Laos, which will soon become borrowers of major banks in Laos.
The multi-billion dollar loan is part of a cooperation agreement signed by Laos and Chinese officials when Chinese senior delegation led by Chinese President Xi Jinping visited Laos.
On July 10, under the witness of the Central Bank of Laos Governor Sonexay Sithphaxay and relevant officials, Vatthana Dalaloy, Vice President of the Central Bank of Laos (BOL), on behalf of the government and the Chinese government designated the National Development Bank Yunnan Branch President Hong Zhenghua signed in Vientiane. loan agreement.
According to a report by a senior official of the Central Bank of Laos, the loans issued by the China Development Bank will be divided into three US$100 million businesses, each based on a memorandum of understanding signed by both parties.
The Lao Central Bank hopes that this $300 million financing will enhance the ability of commercial banks to finance small and medium-sized enterprises in Laos. Once Laos’ SMEs are successfully financed, they will give priority to agricultural production to supply regional markets, including China. The agricultural sector is considered to be the economic base of Laos, but it has not grown as expected.
At the recent regular meeting of the National Assembly, members of Congress called on the Lao government to emphasize the development of domestic production in order to minimize imported products and create more job opportunities for local people.