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- EBRD providing up to US$ 20 million to new partner bank in Mongolia
- Golomt Bank will use funds to support youth- and women-led entrepreneurship
- Trade limit will help to stimulate export-import operations
The European Bank for Reconstruction and Development (EBRD) is supporting the development of businesses owned or led by young people or women entrepreneurs in Mongolia and facilitating the export and import operations of private companies by providing a financing package of up to US$ 20 million (€17.2 million) to the country’s third largest commercial lender, Golomt Bank.
This financing consists of the following three elements:
- A senior loan of up to US$ 12 million (€10.3 million) provided under the EBRD’s Women in Business (WiB) programme for Central Asia, which is supported by the Women Entrepreneurs Finance Initiative. Up to US$ 6 million (€5.17 million) of this money will be earmarked for investments in digital solutions.
- A senior loan of up to US$ 8 million (€6.9 million) under the EBRD’s Youth in Business (YiB) programme in Central Asia, targeting micro, small and medium-sized enterprises (MSMEs) led or owned by young individuals under the age of 35.
- A trade finance limit for Golomt Bank under the EBRD’s Trade Facilitation Programme (TFP). This will enable private domestic businesses to import necessary goods, services and equipment and export their products.
The TFP supports international trade to, from and between economies where the EBRD operates, including Mongolia. Through the TFP, the EBRD provides guarantees to international confirming banks, taking on the political and commercial payment risks of international trade transactions undertaken by banks in those countries. The TFP also strengthens local capacity in the area of trade finance and compliance and advances trade finance skills.
The EBRD has invested almost €2.55 billion in Mongolia’s economy through 160 projects to date. Around 90 per cent of this funding has been used to support private-sector companies.