EU TO SUPPORT MONGOLIAN SMES

Ulaanbaatar /MONTSAME/ The European Bank for Reconstruction and Development (EBRD) May 30 announced a Small and Medium Enterprises (SME) leasing policy initiative that is expected to start this September. The European Union has engaged with EBRD in a partnership to implement the 5-year, EUR 3.8 million support to SME Development in Mongolia project. The project has designed the SME Leasing Policy Initiative which seeks to improve the performance of the financial sector in serving the SMEs. The EBRD's Small Business Initiative will integrate cross-cutting activities to boost impact. The Assignment will take a similar integrated approach to improve the legal environment, the performance of financial institutions, and SME financial literacy. Phase one will focus on increasing SME usage of leasing, with a focus on rural penetration. Phase two, a potential follow-on assignment, will feature an integrated approach to developing new financial products. The objective for this Assignment is to improve the business environment for SMEs. The specific objectives are to effectively reform the legal environment, build the capacity of one or more financial institutions, improve SME financial literacy. The full description of the initiative is accessible at the website of the EBRD.