RECEIVED FINANCING FOR USD 30 MILLION FROM THE ASIAN DEVELOPMENT BANK
Asian Development Bank issued financing to XacBank for USD 30 Million for 5 years to provide loans to small and medium enterprises. A leader in issuing loans to small and medium businesses, XacBank contributes to Mongolia’s economic development by increasing the financial resources available to small and medium entrepreneurs, meeting their financing needs.
Although financing is in US dollars, in order to protect entrepreneurs and clients from the currency fluctuation risks, XacBank will convert the loan into MNT and provide loans in local currency. Mr. Bold, CEO of XacBank, noted about this financing: “With the financing assistance from the Asian Development Bank, we will be able to expand our policy to support SMEs with competitive loans at low interest rates. In the current economic environment in Mongolia, this financing provides an opportunity for SMEs to expand their business and has a great impact on economic development, including job creation, stimulation of purchasing power, export increase, etc.” Whereas Mr. G. Amartuvshin, General Director of XacBank, noted, “we have an alternative source of finance to offer long term financing for our small and medium business clients.”
Also, “ Micro, small and medium enterprise (MSME) growth is needed to help diversify the country’s economy, which relies heavily on the mining industry, and growth of the leasing industry will also be important to provide an alternative source of finance for businesses,” said Ms. Christine Engstrom, Director of the Financial Institutions Division at ADB’s Private Sector Operations Department.
XacBank, which sets the standard in the sector by taking measures to support MSMEs, provides comprehensive financial services using the most advanced technology in a most efficient way to serve its over 600 thousand clients through a network of 107 branches with 1700 professional staff serving over 1300 merchants and AMAR mobile banking agents nationwide.
