The Bank of the Lao PDR reported on the official launch of the Lao Credit Guarantee Company Sole Co., Ltd, a new financial institution designed to provide credit guarantees to help micro, small and medium-sized enterprises (MSMEs) access bank lending where collateral constraints have been a barrier. The firm received an operating licence from the central bank in March 2026 and will operate under its supervision. The company is wholly owned by the Ministry of Finance and was approved for establishment in July 2024 and formally registered in December 2024. At the launch ceremony it signed cooperation agreements with six commercial banks, setting guarantee lines of LAK 200bn with Agricultural Promotion Bank, LAK 50bn with Banque pour le Commerce Exterieur Lao Public (BCEL), and LAK 30bn each with Maruhan Bank, BIC Bank, RHB Bank Lao and Canadia Bank.
Bank of the Lao 2026-04-09
Bank of the Lao PDR grants operating licence as Lao Credit Guarantee Company launches with six partner banks
The Bank of the Lao PDR announced the launch of the Lao Credit Guarantee Company Sole Co., Ltd, a state-owned institution providing credit guarantees to support micro, small and medium-sized enterprises’ access to bank lending, which received its operating licence in March 2026 and will operate under central bank supervision. At launch, the company signed agreements with six commercial banks, setting guarantee lines of LAK 200bn with Agricultural Promotion Bank, LAK 50bn with Banque pour le Commerce Exterieur Lao Public, and LAK 30bn each with Maruhan Bank, BIC Bank, RHB Bank Lao and Canadia Bank.