EBRD allocates up to $20 million for a new partner bank in Mongolia.
Golomt Bank will direct funds to support women and youth in entrepreneurship.
Established trading limits will help activate export-import processes.
The European Bank for Reconstruction and Development (EBRD) provides financial support for the development of businesses managed or owned by young people and women entrepreneurs in Mongolia. The bank also promotes the development of export-import operations of private companies by allocating up to $20 million (€17.2 million) to the country's third-largest commercial lender – Golomt Bank.
The financing includes three main components:
The first component is a senior loan of up to $12 million (€10.3 million) under the EBRD's "Women in Business" (WiB) program for Central Asia, which supports financing for women entrepreneurs. Of this amount, up to $6 million (€5.17 million) will be directed to digital investments.
The second component is a loan of up to $8 million (€6.9 million) under the EBRD's "Youth in Business" (YiB) program for micro, small, and medium enterprises managed or owned by young people up to 35 years old.
The third component is a limitation on trade financing under the Trade Facilitation Program (TFP), allowing Golomt Bank to support the import of necessary goods and the export of its products.
The TFP program facilitates international trade between the countries where the EBRD operates, including Mongolia. Under this program, the bank provides guarantees to international banks, taking on political and commercial risks associated with international trade transactions. TFP also promotes the development of local capacity in trade financing and regulatory compliance.
Since its inception, the EBRD has invested nearly €2.55 billion in the Mongolian economy through 160 projects, of which about 90% of the funds have been directed to support the private sector.
Tatar S. Maydar
source: MiddleAsianNews
