The Microfinance Center Lao or MFC, a company specialized in training and consultancy for the Microfinance sector of the Lao PDR, and the German Savings Bank Foundation or SBFIC, a foundation supporting the development of the Microfinance sector in many including Vietnam and the Lao PDR, have jointly organized a training on the final versions of the Microfinance regulations that were issued in June 2008 by the Bank of Lao PDR (BOL). From the Government’s side, the Chief of the Microfinance Division of BOL, Mdm Keasorn Manivong, was present to give explanation of the main consequences of the regulation for large Village Saving and Credit Groups (VSCG) in particular. On 4 April 2007, the Prime Minister has authorized BOL to supervise the Microfinance sector in the Lao PDR.
The large VSCGs, sometimes also called Village Development Funds (VDFs), were well represented in the group of 44 participants of the first edition of the training on Friday 9 October in the training center of the Lao Women’s Union.
In the Lao PDR, it is estimated that a minimum of 5.000 VDFs exists. All VDFs, including the ones that are instigated by international development organizations, are required by the Microfinance regulations to register with the Lao Central Bank. For those that have over 200 million LAK, some USD 23.000, in voluntary savings it is required not just to register, but to request a license with the BOL.
At the meeting it was reported by the VSCGs managers that in Saythany district alone, the VSCGs jointly have accumulated 61 billion LAK, almost 7 million USD, in savings. From the meeting it was seen by participants and organizers that in order to meet the requirements of the BOL regulations, VSCGs should well prepare and make a professional plan to manage the licensing process well. A second training on the Microfinance regulation will take place on Tuesday 13 October in Thakek, Khammouane Province.