Translated version of this PSD: Mongolian
The EBRD is considering to continue its support for the financial sector in Mongolia with a new € 60 million finance framework for existing and new clients.
The Framework will increase the financing of MSMEs, including in local currency, and enhance lending and risk management skills in participating banks.
The first transaction under this framework will be an MSME loan to XacBank of US$ 5 mln to extend MSME lending to local borrowers.
The transition impact of the proposed Framework will derive from (i) further improvement of financial intermediation in Mongolia and providing medium-term financing to the MSME sector, (ii) supporting new product development (i.e. Value Chain Finance) and thus improving access to finance for MSMEs, (iii) including new Participating Banks, and (iv) supporting Participating Banks to improve business procedures and risk management.
Commercial banks in Mongolia.
XacBank, the first transaction under the Framework, is the fourth largest bank in Mongolia with US$ 1.1 bn in assets and US$ 109 m in equity. XacBank is a retail and MSME-oriented bank with an extensive branch network.
€60 million Finance Framework.
Categorised FI. All Participating Banks (PBs) under the Framework will be required to comply with the EBRD's Performance Requirements 2 and 9.
This involves compliance with EBRD's Environmental and Social Exclusion and Referral Lists; requiring all clients to comply with national regulations and standards on environment, health and safety, labour, social issues and public consultation; and implementation of EBRD's Environmental and Social Procedures for Small and Micro Loans as outlined in the eManual.
All new PBs will be required to complete EBRD's Human Resources Due Diligence Questionnaire and E&S Due Diligence Questionnaires and submit those for EBRD's review to establish compliance with PRs 2 and 9.
Environmental and social due diligence training may be provided to new PBs. All PBs will be required to submit annual environmental and social reports to the EBRD.
During the implementation of the Mongolian Financial Sector Framework II, new TC will be requested on a case-by-case basis where it is considered necessary to strengthen Participating Banks’ capacities. It is expected that TC will be needed in areas of risk management, new products development, institution building and corporate governance.
XacBank HQ Bldg, Ulaanbaatar-14200, Post Branch 20A, PO Box-721, MONGOLIA
Tel: +976 11 318185
Fax: +976 11 328701
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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