EBRD supports Mongolia’s micro and small businesses
EBRD supports Mongolia’s micro and small businesses..
EBRD supports Mongolia’s micro and small businesses. The EBRD and its donors are partnering to extend local currency loans to local participating banks to lend to MSMEs in local currency at affordable interest rates. Through the Program, partner banks have an opportunity not only to reach out to underserved markets but also to develop the skills required to manage foreign exchange risk. Mongolia’s wealth derives mostly from under its rich soil, through a large mining sector. Most finance and business operations are concentrated in the capital Ulaanbaatar, home to half of the country’s population. But without adequate financial support, micro, small and medium-sized enterprises would not be able to survive, let alone thrive. On the other hand, Mongolian financial institutions are often not in a position to assume more risk and provide tailored products for this segment of potential clients. The special Local Currency Program, which provides long-term EBRD finance to small businesses through local partner financial institutions, is active in Armenia, Georgia, Kyrgyz Republic, Moldova, Mongolia and Tajikistan.