ID :
100376
Fri, 01/15/2010 - 17:04
Auther :
Shortlink :
http://m.oananews.org//node/100376
The shortlink copeid
U.S GOVERNMENT SUPPORTS SMALL AND MIDDLE BUSINESS
Ulaanbaatar, /MONTSAME/ An agreement has been established on supporting up to USD25 million in lending to small and medium enterprises (SMEs) in Mongolia, the U.S Embassy in Ulaanbaatar reported Thursday.
This agreement was signed Thursday by Chuck Howell, a USAID representative; M.Bold, CEO of the Khas Bank; and D.Batsaikhan, a Deputy CEO of Khan Bank.
The USAID program under the U.S. Development Credit Authority is the first such program in the country. It will help to save jobs and create more employment in Mongolia by helping to increase a number of loans available to small and medium businesses.
As a result of the economic crisis last year, bank credit in Mongolia and around the world tightened, lending decreased, and higher collateral resources were required from borrowers.
The agreement will help mobilize and leverage financing to SMEs. The primary beneficiaries of this agreement are small businesses and the people who depend on them for jobs and services.
Targeted small businesses will include, but not be limited to, those working in the agriculture, construction and housing sectors, as well as start-ups associated with logistics and supply operations of the mining sector. This program will help maintain and generate employment across these targeted sectors by promoting lower collateral requirements and longer term loans, and thus will minimize the effects of the global financial crisis on the Mongolian economy.
By the way, approximately 90 percent of businesses in Mongolia are small and medium enterprises (SMEs). As a result of the economic crisis, they have been unable to access finance to sustain their businesses. In addition to it, more than 300,000 people are employed by SMEs in key sectors of the economy. Increased lending to SMEs will save jobs as well as create more employment as businesses use credit to expand their operations.
B.Khuder
16.52
This agreement was signed Thursday by Chuck Howell, a USAID representative; M.Bold, CEO of the Khas Bank; and D.Batsaikhan, a Deputy CEO of Khan Bank.
The USAID program under the U.S. Development Credit Authority is the first such program in the country. It will help to save jobs and create more employment in Mongolia by helping to increase a number of loans available to small and medium businesses.
As a result of the economic crisis last year, bank credit in Mongolia and around the world tightened, lending decreased, and higher collateral resources were required from borrowers.
The agreement will help mobilize and leverage financing to SMEs. The primary beneficiaries of this agreement are small businesses and the people who depend on them for jobs and services.
Targeted small businesses will include, but not be limited to, those working in the agriculture, construction and housing sectors, as well as start-ups associated with logistics and supply operations of the mining sector. This program will help maintain and generate employment across these targeted sectors by promoting lower collateral requirements and longer term loans, and thus will minimize the effects of the global financial crisis on the Mongolian economy.
By the way, approximately 90 percent of businesses in Mongolia are small and medium enterprises (SMEs). As a result of the economic crisis, they have been unable to access finance to sustain their businesses. In addition to it, more than 300,000 people are employed by SMEs in key sectors of the economy. Increased lending to SMEs will save jobs as well as create more employment as businesses use credit to expand their operations.
B.Khuder
16.52
