IIB continues to support its member states: the Bank will provide another loan for the SME sector development in Mongolia
International Investment Bank (IIB) announced the conclusion of a new loan agreement with the Golomt Bank of Mongolia that amounts up to USD 10 mln with a tenor of five years. The institution is one the major systemically significant players of the national banking sector, which provides financial services for individuals, SMEs, and corporate clients.
The borrower intends to allocate the proceeds from this tranche to implement lending programs for the SMEs, to finance projects with the participation of companies from IIB’s member states, as well as to support sustainable development initiatives in Mongolia.
IIB and Golomt Bank have been long-standing partners in trade finance operations. Golomt Bank accounts for about half of the total trade finance transactions’ volume carried out by IIB in the country. These transactions ensured, among other things, supplies to Mongolia of high-tech production lines for the modernization of food processing enterprises, medical aircrafts, scientific and diagnostic equipment for the development of healthcare infrastructure, modern building materials, as well as environmentally friendly products of the automotive industry.
Since 2012, the total volume of IIB investments in the interests of Mongolia has exceeded EUR 244 mln in equivalent. The Bank supported the development of such strategic sectors of the national economy as metallurgy, SME, agriculture, manufacturing, mining, etc. Moreover, several investment projects in priority sectors are currently at different stages of assessment at IIB.
“It is visible that the COVID-19 pandemic has had a significantly negative impact on the Mongolian economic entities. By providing credit support to small and medium-sized enterprises through our trusted partner Golomt Bank , IIB extends timely financial aid to local entrepreneurs that helps them to quickly regain positions and restart further business development,” said Georgy Potapov, Deputy Chairperson of the Bank's Management Board, in charge of Lending and Investments.