Representatives from the  leading microfinance institutions and savings and credit unions from Vientiane capital and province gather to participate in an accounting training course specifically designed for accounting staff working in the ever growing microfinance sector in this country. The training is jointly delivered by trainers from Microfinance Center (MFC), the leading microfinance training provider in Vientiane and the ‘Catalyzing Microfinance for the Poor’ Project.

It has been observed that many MFIs/SCUs in the country which are registered or licensed by the BOL lack expertise in accounting, mainly due to the fact that most MFIs/SCUs are less than two years old and most of their staff have little or no relevant training before or experience prior to taking on their roles. The training aims to address this and increase the staff’s skills in accounting, in particular in gaining an understanding of basic accounting principles and their application to microfinance; understanding the use of accounting records relevant to microfinance; reviewing the purpose and components of financial statements relevant to microfinance; understanding the accounting treatment of grants and practicing the accounting cycle.

The same workshop will be delivered in Luang Prabang from 9-13 November and in Savannakhet from 23-27 November 2009 to train accountant staff from registered/licensed MFIs/SCUs from the respective regions as well.

The training is part of a series of training activities conducted under the project. So far MFIs/SCUs have received formal training in microfinance best practice, business planning, management information systems and loan and delinquency management. Future training will focus on building skills in the area of governance as well.

The ‘Catalyzing Microfinance for the Poor’ Project activities include training and capacity building for staff of registered/licensed microfinance institutions (MFIs) and savings and credit unions (SCUs) and MF Division of Bank of Lao PDR as well as provision of matching grants for seed capital, equipment, and capacity building in new and expanding MFIs/SCUs.

The project supports the Lao government’s vision for the development of the microfinance sector by encouraging the establishment and operation of private, sustainable MFIs and SCUs that focus on best practice and outreach to the poor, and consequently contribute to poverty alleviation. The 3-year project is funded by Asian Development Bank and implemented by the Central Bank, Bank of Lao PDR.