The World Bank’s Board of Executive Directors today approved $60 million in financing for the Lao People’s Democratic Republic, of which $35 million will help the country to strengthen its financial safety nets, and $25 million will support the upgrade the national civil registration system.
The $35 million Financial Sector Safety Net Strengthening Project will build the capacity of the Deposit Protection Office, a public legal entity, to fulfil its deposit insurance mandate while benefiting households and small and medium enterprises with deposits in the banking system by protecting them in case of a bank failure.
“A strengthened deposit insurance system will make the banking system more resilient to possible shocks.” said Mariam Sherman, World Bank Country Director for Myanmar, Cambodia and Lao PDR. “This could facilitate the mobilization of domestic savings, which can be put to productive use and stimulate economic activity and job creation.”
The $25 million Civil Registration and Vital Statistics (CRVS) Project will support the establishment of a comprehensive national civil registration equipped to record key life events. The CRVS will provide vital data that can inform the formulation and implementation of public policies and help with the monitoring and evaluation of national and subnational development plans.
“Poor coverage of civil registration jeopardizes the quality of planning and monitoring of programs at the national and local levels” said Nicola Pontara, World Bank Country Manager for Lao PDR. “The 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.”
This Project will help expedite the implementation of the Lao PDR Government’s 2016-2025 CRVS Strategic Plan, the 2018 Family Registration Law and meet the commitments of the Asia and Pacific 2015-2024 Regional Action Framework on CRVS.
The financing comes from the World Bank’s International Development Association (IDA). The World Bank’s IDA established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.