Micro, small, and medium-sized enterprises to be boosted
The Asian Development Bank (ADB) and Invescore NBFI JSC signed a USD 10 million loan
The Asian Development Bank (ADB) and Invescore NBFI JSC signed a USD 10 million loan to support job creation and sustainable development in Mongolia by helping improve access to finance for micro, small, and medium-sized enterprises (MSMEs). The financial package comprises USD 5 million from ADB’s ordinary capital resources and a further USD 5 million in B-loans with ADB as the lender on record. A portion of the USD 5 million A-loan from ADB is expected to be disbursed in togrog. At least 30 percent of the funds are earmarked for women-owned MSMEs. “By supporting Mongolia’s nonbank financial institution (NBFI) sector, ADB’s assistance will help to improve access to finance for these businesses, and support job creation and inclusive growth in the country.” MSMEs have a critical role in the sustainable development of Mongolia’s economy, employing 72 percent of the workforce and accounting for 18% of gross domestic product. Their potential to generate even more jobs and wealth is hamstrung by limited access to finance. ADB’s loan to Invescore, its first direct loan to an NBFI in Mongolia, will help improve the company’s funding profile and support its expansion of finance to MSMEs, especially those run by women. Invescore was established in 2016 and became the largest Nonbanking financial institution in Mongolia.
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