KHAN BANK BECOMES FIRST ONE TO LAUNCH FINANCIAL LEASING SERVICE

Ulaanbaatar, Mongolia, /MONTSAME/ Khan Bank has become the first bank licensed to offer equipment leasing, the bank's website reported Friday.
According to Mongolia's law on Bank, updated and approved January 29, 2010, any commercial bank has an opportunity to launch Financial Leasing upon receipt of the special permit from the Bank of Mongolia. Then, as per Bank of Mongolia's meeting decision, Khan Bank has been licensed to launch Financial Leasing.
Following the event, the bank has established collaboration agreements with Hyundai and "Khokh Tengeriin Oron" LLC, the first vendor companies that have been involved in financial leasing. The Hyundai Company runs heavy load machineries trade and services large business entities mainly, whereas the Khukh Tengeriin Oron LLC manufactures wool processing equipment for family business owners.
Financial leasing service fully accommodates SMEs' special needs and contributes to small and medium business development. Entrepreneurs now can utilize new and innovative machineries or equipment on financial leasing from a bank in order to operate their businesses more effectively. Collateral is not required in order to qualify for this financial service and the equipment leased could be pledged as collateral.
Another feature of the financial leasing service is that a lessee may act as both an equipment vendor and a lessee. In addition to it, a lessee may purchase equipment from products offered by vendor companies that have executed collaboration agreement with Khan Bank.
The Khan Bank is working with the Government and Non-Government organizations with the goal to develop financial leasing tailored to entrepreneurs.
B.Khuder