Climate Friendly Agribusiness value chains sector project : Financial Management Entity (FME)
The Laotian agribusiness sector is dominated by family-owned SMEs, which are severely constrained in their growth by a lack of access to affordable credit. The financial sector in turn is reluctant to lend to agribusiness perceiving this sector as highly risky. Through the interventions of the Project as described below, the risk averseness of the financial sector will progressively lower and the access to credit in the target provinces of Laos will gradually improve.