Risk sharing/co-financing with partner financial institutions on their loans to mostly small and medium-sized companies.
Under the Instrument 2, EBRD will share in the risk of the PFIs’ loans to SMEs to catalyse an additional amount of financing not readily available under Instrument 1. Targeted undersupplied financing includes:
(i) providing larger amounts of financing to valuable SMEs (beyond what a local PFI would be prepared to bear on its own account);
(ii) providing financing to SMEs that do not have sufficient collateral for a loan;
(iii) providing long-term financing to support large capital investment projects, and (iv) providing financing to complicated projects that require expertise provided by the Bank.
Instrument 2 is expected to successfully help bridge the financing gap for companies wishing to grow and diversify their businesses.
For more information on Support for Mongolian Economic Diversification through SME Access to Finance and how your business could benefit from business advice, please contact: knowhow@ebrd.com or +976 11317974/ +976 11319278.
