Lao Credit Guarantee Sole Company Limited, a state-owned financial institution under the supervision of the Bank of Lao PDR, operates with technical guidance from the Ministry of Industry and Commerce and is fully owned by the Ministry of Finance. It was established following approval of the Lao PDR government under Decision No. 1296/GOL dated 4 July 2024 and followed by Ministry of Finance’s notification of establishment No. 2696/MOF dated 29 July 2024. LCGC was officially incorporated on 5 December 2024. LCGC’s mandate is to improve access to finance for micro, small, and medium-sized enterprises by providing credit guarantees to financial institutions, thereby reducing lending risks and promoting credit growth in Lao PDR.
Lao Credit Guarantee Sole Company Limited (LCGC: ບ ຄ ຊ) is a state-owned financial institution established under the laws of the Lao People’s Democratic Republic. It was officially incorporated on 5 December 2024, following the government’s Decision No. 1296/GOL dated 4 July 2024 and the Ministry of Finance notification No. 2696/MOF dated 29 July 2024.
Lao Credit Guarantee Sole Company Limited operates under the prudential supervision of the Bank of Lao PDR, receives technical guidance from the Ministry of Industry and Commerce, and is fully owned by the Ministry of Finance.
Our Vision Mission
Mission
To improve access to finance for Micro, Small and Medium-sized Enterprises (MSMEs) across Lao PDR by providing credit guarantees to partner financial institutions — reducing lending risk and promoting sustainable credit growth throughout the country.
Vision
To be the leading credit guarantee institution in Lao PDR, recognised for its role in building a more inclusive and dynamic financial ecosystem that enables MSMEs to thrive and contribute to national economic development.
COMPANY AT A GLANCE
| Legal Name | Lao Credit Guarantee Sole Company Limited |
| Abbreviation | LCGC ( ບ ຄ ຊ ) |
| Date of Incorporation | 5 December 2024 |
| Establishment Authority | Decision No. 1296/GOL dated 4 July 2024 |
| Ownership | 100% owned by the Ministry of Finance, Lao PDR |
| Supervisory Authority | Bank of Lao PDR (Prudential Supervision) |
| Technical Guidance | Ministry of Industry and Commerce |
| Headquarters | Vientiane Capital, Lao PDR |
| Initial Scheme Size | LAK 500 Billion (Five Hundred Billion Kip) |
| Foreign Currency Tranche | LAK 50 Billion (10%) — USD, THB & CNY |
| Governing Law | Laws of the Lao People's Democratic Republic |
PURPOSE & OBJECTIVES
PURPOSE
LCGC exists to bridge the financing gap faced by Micro, Small and Medium-sized Enterprises in Lao PDR by providing structured, credit guarantees that enable partner financial institutions to lend with greater confidence — driving economic inclusion, job creation, and sustainable growth across the nation.
Six Strategic Objectives
Improve MSME Access to Finance
Provide credit guarantees to partner financial institutions, enabling them to extend credit to MSMEs that lack sufficient collateral or credit history — unlocking financing that would otherwise be inaccessible.
Share Credit Risk with PFIs
Act as a risk-sharing mechanism to guarantee up to 80% of guaranteed loans, thereby increasing the confidence for banks and encouraging more active MSME lending.
Promote Inclusive Economic Growth
Support MSMEs across all eligible sectors — agriculture, trade, services, handicraft, and industry — with special focus on manufacturing, agro-processing, and tourism to stimulate job creation and GDP growth.
Develop a Sustainable Ecosystem
Build a commercially viable and self-sustaining guarantee institution with sound risk management, transparent governance, and long-term capital adequacy — serving as a model for financial inclusion in Lao PDR.
Strengthen the Financial Sector
Support the Bank of Lao PDR's financial sector development goals by deepening credit markets, improving banking sector asset quality through structured risk-sharing, and advancing compliance with international standards such as IFRS 9.
Protect and Empower Borrowers
Ensure that MSME borrowers benefit from fair, transparent, and professional credit guarantee processes — with LCGC providing an additional layer of confidence that supports borrowers' long-term business viability.
Our Core Values
Our five core values define who we are, how we work, and the standard we hold ourselves to every day. They guide our relationships with MSMEs, partner financial institutions, regulators, and each other.
ACCOUNTABILITY
We relish the responsibility arising from the commitments we make and the actions we take. We hold ourselves accountable to our partners, borrowers, regulators, and the people of Lao PDR — delivering on our promises and owning our outcomes with pride.
RESPECT
We treat our clients, partners, borrowers, and colleagues with respect, dignity, and fairness. We recognise the diversity of perspectives and backgrounds within Lao PDR's business community, and we celebrate that diversity as a strength.
INTEGRITY
We do things the ethical way because that is the only way. We maintain the highest standards of honesty, transparency, and professional conduct in every interaction, every decision, and every guarantee we issue. Our word is our bond.
SUPPORTIVE
We create a truly caring environment for our people, our clients, and our partner financial institutions. Through active collaboration, open communication, and genuine empathy, we place the well-being of MSMEs and our stakeholders at the heart of everything we do.
EXCELLENCE
We are committed to continually bettering ourselves through innovation, learning, and the courage to challenge conventional thinking. We embrace new ideas, technologies, and approaches that allow LCGC and the MSMEs we serve to grow and evolve.
Our Vision for Lao MSMEs
A Lao PDR where every MSME has fair and equal access to the financing it needs to grow, compete, and contribute to a prosperous and inclusive national economy supported by a world-class credit guarantee institution.
Six Pillars of Our MSME Vision
Financial Inclusion
Ensure every eligible MSME in Lao PDR can access affordable credit through the formal banking sector, regardless of geographic location, collateral position, or business size.
Sustainable Business Growth
Empower MSMEs to invest, expand, and innovate with confidence, supported by a structured financial safety net that enables long-term growth.
Job Creation & Livelihoods
Support the MSME sector — the backbone of Lao PDR's economy — in creating sustainable employment, improving household incomes, and reducing economic inequality.
Manufacturing & Value Addition
Prioritise guarantees for manufacturing and agro-processing, helping Lao MSMEs move up the value chain and develop secondary industry to reduce dependence on raw commodity exports.
Regional Competitiveness
Equip Lao MSMEs to compete effectively within ASEAN, supporting export-oriented businesses, trade financing, and tourism services that generate foreign exchange earnings.
Public-Private Partnership
Foster a collaborative ecosystem where LCGC, partner banks, the government, and MSMEs work together as partners in prosperity aligned by shared goals of national development.
STRATEGIC ROADMAP
Establishment & Pilot Scheme
Launch initial credit guarantee operations and onboard pilot Partner Financial Institutions (PFIs), with a strong focus on priority MSME sectors such as Agriculture and Tourism.
Expansion & Digitalization
Expand the PFI network nationwide, introduce a fully digital guarantee platform, and develop specialized guarantee products to meet diverse MSME needs.
Maturity & Sustainable Impact
Achieve financial self-sustainability, integrate with regional credit guarantee standards, and foster a fully inclusive financial ecosystem for Lao PDR.
LCGC Board of Directors
LCGC Management
LCGC Organization Chart
