Lao Govt Issues Loan Policy of USD 128 Million to Boost Economy

0
1007
Lao Kip . (File photo from Nouthaphone Simmavong).

The government of Laos has rolled out a credit policy of about LAK 2.5 trillion (USD 128 million) for some industries to enhance the economy and promote the use of domestic products in the country from 2023 to 2025.

The notice issued by the Prime Minister’s office states that agricultural and forestry enterprises involved in the production of crops, animal husbandry, animal feed, food, beverages, cleaning products, packaging materials, and handicrafts are eligible to apply for a loan under this scheme.

The loan is also available to businesses in the tourism industry, including small and medium-sized hotels, tourism agency services, and local restaurants that accommodate large groups of tourists.

The Bank of the Lao PDR will sign an agreement with the commercial banks to provide the loan after approving the loan documents submitted by businesses through commercial banks.

As per the terms of the agreement, businesses must pay the loan’s interest every three to six months to commercial banks in Laos.

Those that fail to meet their obligations will be prohibited from receiving loans in the future and could even have their registration license revoked.

Last month, the Ministry of Industry and Commerce (MTC) announced its decision to provide loans with low-interest rates and offer technical assistance to help domestic MSMEs improve and boost their production quality and capacity.