Financial Management Capacity Building Credit

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The Financial Management Capacity Building Credit Project for aims to provide a comprehensive and strategic framework for the capacity building activities to improve the financial management in Laos PDR and to provide a credit for specific technical assistance and training activities within such framework. There are four project components. Component 1 supports capacity building activities in four areas: 1) designing and implementing individual restructuring plans for state owned commercial banks; 2) assessing, developing, and supporting the legal and institutional framework for resolving non-performing loans; 3) strengthening the capacity of the Bank of Lao PDR (BOL) to supervise SCBs and the capacity of the government to monitor and support Bank restructuring plans; and 4) developing rural and micro finance. Component 2 supports capacity building in budget planning, streamlining budget execution and control, and improving transparency into the budgetary process as well as the issue of transparency related to public finances, adequate public disclosure of financial information, and public sector accounting and auditing standards. Component 3 builds capacity in 1) strengthening oversight of financial and operational performance of public enterprises; 2) strengthens capacity of board directors and senior maangement in corporate governance and financial management and enterprise restructuring; and 3) reforms tariff policy. Component 4 builds the finance ministry's capacity.