Rural Credit Project

Rural Credit Project

The southern provinces of the Lao People's Democratic Republic have remained isolated from the rest of the country, and largely excluded from external assistance. The incidence of poverty in these provinces is higher than in the rest of the country. Yet there is good potential for increased and diversified food crop production.

The project objective was to stimulate rural production and increase the incomes of poor households by strengthening the capacity of the State Bank of Lao to deliver rural credit. The project was initially implemented in the southern provinces of Champasack and Saravane and the province and prefecture of Vientiane, because those areas are poor and undeveloped and they also offer opportunities to support women's enterprises. Women's cottage craft enterprises are particularly concentrated in rural and urban areas around Vientiane City.

The project helped provide credit for the purchase of the farm inputs needed for crop and livestock production, aquaculture and the processing of agricultural products, as well as credit for cottage and light industries. It also helped guide the Government of the Lao People's Democratic Republic in undertaking the institutional and policy reforms needed to support rural development.

Source: IFAD