Golomt Bank and International Investment Bank concludes a long-term loan agreement to support SME sector in MongoliaEconomy
Ulaanbaatar /MONTSAME/. Golomt Bank of Mongolia secured a USD 10 million loan with a tenor of five years from International Investment Bank (IIB) on 10 June 2021. Golomt Bank plans to utilize the loan proceeds to finance the SMEs, the projects with the participation of companies from IIB’s member states, as well as to support sustainable development initiatives in Mongolia.
As one of the systemically important banks in Mongolia, Golomt Bank is committed to provide financing with competitive conditions to the country’s SMEs and Corporates for their implementation of Business, Investment and Sustainable projects. The loan will timely support those Mongolian businesses during this challenging period.
“Golomt Bank has been a key player in contributing to the countries’ economic growth through well designed and tailored financial products and services. In the midst of COVID-19 pandemic, the Bank acknowledges its crucial role in the economy and is committed to support businesses with affordable funding in which IIB’s contribution would add substantial value to recovery of the country’s businesses. This long-term loan not only signifies the long-lasting partnership between IIB and Golomt Bank but also International Development Institution’s growing trust in Golomt Bank” said Mr. Norihiko Kato, Chief Executive Officer of Golomt Bank, stressing the importance of the loan from IIB.
Headquartered in Budapest, IIB is a multilateral financial institution that promotes social and economic development as well as economic cooperation among its member countries – Bulgaria, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam.
IIB and Golomt Bank have been long-standing partners in trade finance business. Golomt Bank accounts for about half of the total trade finance transactions’ volume carried out by IIB in Mongolia. These deals were, among others, supplies from member countries to Mongolia of high-tech production lines for the modernization of food processing enterprises, medical aircrafts, scientific and diagnostic equipment for the development of healthcare infrastructure, modern building materials, as well as environmentally friendly products of the automotive industry.