KHAN BANK AND EBRD SUPPORT MICRO, SMALL AND MEDIUM ENTERPRISES

Ulaanbaatar /MONTSAME/ Khan Bank, one of the leading commercial banks in Mongolia, have established a lending agreement for the MNT equivalent of USD 8 million with the European Bank for Reconstruction and Development (EBRD). The Khan Bank’s website published Monday. Last year the parties signed a USD 25 million loan agreement for providing cheaper financing to micro, small and medium suppliers and distributors conducting business with large corporations. This time Khan Bank is receiving its last tranche of USD 8 million equivalent in MNT. For the first time among the Mongolian commercial banks, Khan Bank secures funding in MNT from an international bank owing to is reliable reputation. The signing ceremony was attended by the executive management of the parties, and the agreement was signed by Norihiko Kato, Chief Executive Officer of Khan Bank, and Matthieu Le Blan, head of the EBRD Office in Mongolia. This loan, provided by the EBRD, has great importance in improving access to finance for MSMEs, and with the loan being made in the national currency, the Togrog, it is expected to reinforce the development of the Mongolian capital markets and the national economy. Khan Bank together with the EBRD makes considerable efforts to improve access to finance for MSMEs in Mongolia. In the year 2013, the bank obtained USD17million from the EBRD under this framework, and has fully disbursed it to MSMEs including USD 5million of sub-loans to about 51 businesses in value chains in Mongolia. Thanks to the EBRD’s support, funding to micro, small and medium enterprises has increased which is anticipated will become solid investment in those target groups.