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AKIPRESS.COM - The European Bank for Reconstruction and Development (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 second 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.
The EBRD has invested about US$ 1.6 billion in about 86 projects in Mongolia since 2006.