Vientiane, the Lao People’s Democratic Republic, May 31, 2011—
IFC, a member of the World Bank Group, and Bank of the Lao PDR today signed a Memorandum of Understanding that will help improve a legal framework of the country’s payment systems and increase payment-method choices for small and medium enterprises and consumers, stimulating economic growth.
Drawing on IFC’s and the World Bank’s experience and expertise in developing payment systems in more than 100 countries, IFC will advise Bank of the Lao PDR on a legal and regulatory framework for the National Payment Systems, paving the way for the operation of safer, more efficient, cheaper, and innovative payment methods such as mobile payments.
“The Lao National Payment Systems lack a sound legal basis to support its development,” said Mr. Panom Lathouly, Deputy Director General of International Relations Department, Bank of the Lao PDR. “The development of an appropriate regulatory framework for the Lao National Payment Systems is an urgent agenda for us and we greatly appreciate IFC’s engagement.”
The Lao PDR’s Financial Institution Development Strategy has identified payment systems reform as critical to the development of the country’s financial infrastructure and to the stability of the overall economy.
“A sound and efficient payment-systems infrastructure is indispensable for the stability of the young and growing financial market in the Lao PDR,” said Aimilios Chatzinikolaou, Head of IFC’s office in Vientiane. “Development of payment systems has important social implications when it is able to reach underserved segments of the population and provide them with affordable payment services.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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