Lao People’s Democratic Republic: World Bank Approves $60 Million in Financing

The World Bank has approved a significant $60 million in financing for the Lao People’s Democratic Republic to strengthen its financial safety nets and upgrade the national civil registration system. This funding is allocated towards two distinct projects aimed at enhancing the country’s economic stability and development.

Financial Sector Safety Net Strengthening Project

A significant portion of the financing, $35 million, will be dedicated to the Financial Sector Safety Net Strengthening Project. This project aims to bolster the capacity of the Deposit Protection Office, a public legal entity responsible for deposit insurance.

Key Objectives:

• Safeguard households and small and medium enterprises with deposits in the banking system in the event of a bank failure
• Enhance the resilience of the banking system to possible shocks
• Facilitate the mobilization of domestic savings, which can be put to productive use and stimulate economic activity and job creation

Civil Registration and Vital Statistics (CRVS) Project

The remaining $25 million will support the upgrade of the national civil registration system through the CRVS Project. This initiative aims to establish a comprehensive system for recording key life events.

Key Objectives:

• Establish a systematic collection and analysis of key life events
• Provide evidence-based information for policymakers to target specific segments of the population, including the poor, with tailored policies and services
• Improve the quality of planning and monitoring of programs at national and local levels

Funding Source

This funding comes from the International Development Association (IDA), established in 1960. The IDA provides grants and low-to-zero-interest loans for projects and programs aimed at promoting economic growth, reducing poverty, and improving the lives of poor people worldwide.

Source: World Bank Press Release