MANILA, June 28 (Xinhua) -- The Asian Development Bank (ADB) on Friday said it has signed a 15-million-U.S. dollar loan with Bogd Bank JSC to finance micro, small, and medium-sized enterprises (MSMEs) in Mongolia.
The financing package comprises 14 million dollars from the ADB, half of which is earmarked for MSMEs led or owned by women, and 1 million dollars from the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), which is administered by the ADB.
The CFPS II concessional loan will be blended with the ADB's financing to fund climate finance initiatives for MSMEs, including purchasing energy-efficient equipment and small-scale renewable energy installations.
According to the ADB, MSMEs are the backbone of Mongolia's economy, playing a vital role by accounting for most of all registered businesses and jobs. Their contribution of 18 percent to the nation's gross domestic product underscores their significance.
However, access to credit is a significant barrier to their growth, with MSMEs accounting for less than a third of the total outstanding bank loans as of 2023.
Established in 2014, Bogd Bank operates 16 branches nationwide, and has provided financial support to nearly 12,500 borrowers across multiple sectors. Bogd Bank's lending to MSMEs accounts for over half of its portfolio, with a growing focus on women's trade, agriculture, and healthcare businesses.
In 2021, Bogd Bank became the first publicly listed bank on the Mongolian Stock Exchange. ■
