The European Bank for Reconstruction and Development (EBRD) is providing a loan of $4.5 million (€3.8 million) to the non-banking financial organization Transcapital NBFI in Mongolia, which will help support micro, small, and medium-sized enterprises (MSMEs).
The funds will be used to provide loans to private small and medium-sized enterprises across the country, with a focus on improving financial accessibility in rural areas of Mongolia. It is expected that the majority of the loans will be directed towards supporting businesses outside the capital, Ulaanbaatar, which is important for regional development.
Transcapital also plans to allocate at least 30% of its funds to new borrowers, which will help attract new clients and expand its loan portfolio. In addition, the company will actively work on improving financial literacy in rural areas, paying special attention to women entrepreneurs.
The organization has significant experience in ensuring financial accessibility and recently received an award for best non-financial services under the EBRD's "Women in Business" program.
This program provides support to micro, small, and medium-sized enterprises that are managed or owned by women, ensuring their access to financial and non-financial services in participating countries.
For the private sector in Mongolia, access to financing remains a serious challenge, especially in regions far from Ulaanbaatar. The sustainability of Mongolia's economy, based on a stronger and more diverse private sector, is one of the key priorities for the EBRD.
Since its arrival in Mongolia in 2006, the EBRD has invested over €2.5 billion in 163 projects, with about 90% of these funds directed towards supporting the private sector.
Tatar S. Maydar
Source: MiddleAsianNews
