The European Bank for Reconstruction and Development (EBRD) is supporting micro, small and medium-sized (MSMEs) in Mongolia with a local currency loan of US$ 4.5 million (€3.8 million) to Transcapital NBFI – a leading non-bank financial institution in the country.

The EBRD’s longstanding client will on-lend the proceeds to private MSMEs across Mongolia, with a strong focus on financial inclusion in the country’s rural regions. Majority of the loan is expected to be channelled to businesses outside the capital, Ulaanbaatar, supporting the regional development.

Transcapital is also aiming to direct at least 30 per cent of the proceeds to first-time borrowers, attracting new clients while expanding its loan portfolio. It will also work towards enhancing financial literacy in rural areas, including among women entrepreneurs.

The company has a strong track record on financial inclusion, having recently secured an award for Best Non-Financial Services Provided within the EBRD’s Women in Business programme.

Access to finance remains a significant constraint for Mongolia’s private sector, especially outside Ulaanbaatar. Enhancing Mongolia’s economic resilience through a stronger, more diversified and stable private sector remains a key strategic priority for the EBRD.

Since the start of its operations in Mongolia in 2006, the EBRD has invested over €2.5 billion in the country’s economy through 163 projects to date. Around 90 per cent of this funding has been used to support private-sector companies.

Source: The European Bank for Reconstruction and Development