Mr Somboun Phongsavanh (left) shakes hands with Ms Maria Goravanchi after signing an agreement on the provision of loans for farmers.

                                           
Phongsavanh Bank partners with DFC, US government Agency to provide credit guarantee support to Lao farmers

Phongsavanh Bank Ltd, together with US Embassy to Laos, DFC and USAID hosted a signing ceremony for a loan portfolio guarantee agreement between Phongsavanh Bank Ltd and the US International Development Finance Corporation (DFC). The agreement, co-funded by the US Agency for International Development (USAID) and DFC, will provide up to US$5 million in loan guarantees to support farmers across Laos.
The agreement was signed by Phongsavanh Bank’s Deputy Managing Director, Mr Somboun Phongsavanh, and DFC's Regional Managing Director for the Lower Mekong, Ms Maria Goravanchi. The event was witnessed by the Deputy Governor of the Bank of the Lao PDR, Mr Soulivath Souvannachoumkham, and US Deputy Chief of Mission, Ms Michelle Y. Outlaw.
Several distinguished guests attended the ceremony, including Vice Presidents of the Lao Front for National Development, Mr Khamlay Sipaseuth and Dr Od Phongsavanh.

Ms Michelle Y. Outlaw.	Mr Soulivath Souvannachoumkham.
Ms Maria Goravanchi.	Mr Somboun Phongsavanh talks to a reporter.

This new loan guarantee initiative is designed to expand access to credit for micro, small, and medium enterprises (MSMEs) in the agricultural sector. US Deputy Chief of Mission Michelle Y. Outlaw highlighted the significance of this partnership, stating, “This initiative is not only about supporting individual businesses but also about fostering a more inclusive and resilient economy. By collaborating with local private banks, we are creating sustainable pathways for MSMEs to access credit, benefiting both businesses and the broader economy.”
Phongsavanh Bank’s Deputy Managing Director, Mr Somboun Phongsavanh, emphasised the importance of public-private partnerships in driving development. "This collaboration demonstrates the potential of public-private cooperation in advancing economic progress. We hope to see more initiatives like this contributing to the growth of Laos," he said.
Phongsavanh Bank has been actively promoting and extending credit through the Lao National Solidarity Fund since 2017. Operating across 44 villages in 29 districts of 11 provinces, the initiative aims to enhance access to finance for rural communities. With strong government backing, the project is set to expand to cover every province in Laos.
Thanks to DFC’s financial support, farmers are expected to benefit from reduced production costs, increased profits, and greater financial stability. Additionally, village funds have established learning centers that provide training on various agricultural practices, such as crop cultivation, animal husbandry, and the planting of fruit-bearing trees and other crops. These efforts aim to strengthen agricultural production, improve food security, and enhance the quality of produce across Laos.
Through this credit guarantee agreement, Phongsavanh Bank and DFC seek to bolster community development by providing targeted financing that integrates modern agricultural techniques and scientific knowledge. This initiative aspires to elevate the quality and yield of agricultural products to meet market demand, while creating value-added opportunities for local producers.
Phongsavanh Bank, founded in 2007, is a part of the Phongsavanh Group, a leading Lao conglomerate with diversified business operations across sectors such as banking and financial services, logistics, construction, insurance, and trade. The Group is also involved in the import and export of agricultural products both domestically and internationally.

By Advertorial Desk
 (Latest Update October 14, 2024)