This loan will be used by Transcapital to provide loans to private small and medium enterprises across Mongolia, especially in rural areas where there is a need to improve access to finance. The focus will be on companies located outside the capital, Ulaanbaatar, which will help support regional development.
Additionally, Transcapital aims to direct at least 30% of its funds to support new clients seeking a loan for the first time, in an effort to increase its client base and expand its loan portfolio. An important part of the company's work will also be to enhance financial literacy, including among women entrepreneurs in rural areas.
Transcapital has significant experience in financial accessibility and was recently awarded for outstanding non-financial services under the EBRD's "Women in Business" program.
This program aims to support micro, small, and medium enterprises managed or owned by women, providing them with access to financial and non-financial services in the participating countries.
Access to financing remains a serious challenge for the private sector in Mongolia, especially outside Ulaanbaatar. The EBRD emphasizes the need to strengthen the country's economic resilience through the development of a stable and diverse private sector, which is an important strategic priority.
Since its arrival in Mongolia in 2006, the EBRD has invested over €2.5 billion in the country's economy, implementing 163 projects. About 90% of these investments have been directed towards supporting the private sector.
Tatar S. Maidar
source: MiddleAsianNews
