SME support, joint projects and current IIB agenda discussed during meetings in Mongolia

SME support, joint projects and current IIB agenda discussed during meetings in Mongolia

On November 17-18, 2016, the delegation of the International Investment Bank (IIB), led by Deputy Chairman of the IIB Board, Vladimir Liventsev, visited Mongolia – one of the Bank’s Asian shareholders. The mission included meetings with Mongolia’s Minister of Finance Choijilsuren Battogtokh, top executives of Mongolbank and the Development Bank of Mongolia as well as representatives of the EBRD and the IFC, IIB’s co-financing partners in the country. The talks focused on different scenarios of Mongolia’s economic development in the near future, the present situation and the current agenda of the IIB, including preparations for the 106th IIB Council Meeting.

During the meeting with the Minister of Finance, V. Liventsev discussed further prospects for IIB’s support of the Mongolian economy. In June 2016, the IIB joined a syndication of USD 125.5 million, organised by the IFC and the FMO for Mongolia’s XacBank, one of the country’s leading creditor of micro- and small enterprises. Furthermore, in the 4th quarter, the Bank concluded its first trade finance transaction with a Mongolian counterparty, having supported supply of automatic flour packaging line to the country from the Czech Republic, another member state of the IIB.

From his side, the Minister of Finance expressed solid support for IIB’s activities aimed at fostering sustainable social and economic development of Mongolia by financing Mongolian projects and expanding access of local small and medium-sized businesses to financial resources.

An important meeting took place with the CEO of the Development Bank of Mongolia, Balgan Batbayar. Last year, the IIB provided Mongolia’s national development institution with EUR 20 million and the discussion focused on possibilities for expanding cooperation between the banks.

After reform of the Bank, launched in 2012, the renewed IIB actively interacts with other IFIs on implementation of Mongolian projects. The country in particular is a major recipient of syndicated funds, total volume of which has now reached over USD 360 million. Overall, the size of IIB’s signed loans to Mongolian counterparts in the past four years exceeds the equivalent of USD 80 million.