EBRD boosts small business in Mongolia
The EBRD is continuing to support micro and small businesses in Mongolia with a loan to microfinance
institution, Transcapital. The loan of MNT 6 billion will be provided in the
local currency, Mongolian tugrik.
Transcapital, the most reputable microfinance institution in the country,
has been an EBRD client since 2013. The loan, which comes under the EBRD Early
Transition Countries Initiative,* is the third loan to
Transcapital enabling the client to increase its customer base and reach
additional under-served customers such as micro enterprises in the poorer areas
of Ulaanbaatar or in the regions.
Transcapital’s network will allow EBRD financing to reach micro enterprises
around the country – some of which, we hope, will grow into small and
medium-sized companies. Importantly, the loan will be denominated in local
currency, allowing entrepreneurs who sell their goods and services in local
currency to avoid foreign exchange rate risk.
Transcapital CEO, Altanzul Zorigt, said: "Since 2013, our two
organisations have been successfully cooperating to provide opportunities to
micro and small enterprises in underdeveloped regions and improve access to
finance in Mongolia. With the EBRD’s local currency loan, our clients have been
able to access funding with no effect from foreign exchange rate risk, further
strengthening Transcapital’s presence on the market. On the other hand,
Transcapital has enjoyed tangible developments within the organisation through
the EBRD’s technical assistance and expertise sharing. We are glad to see that
our goal to promote sustainable development of micro and small enterprises is
only growing stronger with this funding. I'm looking forward to extending our
services to more rural and economically disadvantaged populations."
The EBRD has invested about US$ 1.6 billion in about 86 projects in
Mongolia since 2006.
