The EBRD and Mongolia’s largest bank, Khan Bank, have
signed a participation agreement for USD10 million under the EBRD Medium-Sized
Co-Financing Facility (MCFF). “The MCFF is designed to provide
co-financing by EBRD for up to 50 per cent of Khan Bank’s loans to selected
customers. This will allow Khan Bank to expand its lending capacity providing
larger, longer-term loans while reducing the risk of single borrower credit
concentration. The signing of this agreement is an important part of Khan
Bank’s strategy to diversify and develop its financial services and banking
products,” EBRD said in an announcement.

A Khan Bank stamen 
said, “We are very pleased to be expanding our strategic relationship
with the EBRD. At an important time in Mongolia’s development, this facility
will expand Khan Bank’s ability to meet the growing financial needs of its
customers with well structured, longer-term loans.”

“This facility is an important step in the further
enhancement of our cooperation with Khan Bank, which will enable more
businesses to access bank financing and facilitate growth of a medium-sized
private sector in Mongolia,” said Philip ter Woort, Head of the EBRD office in
Mongolia.

EBRD has been one of the principal international
financial institutions that cooperate with Khan Bank in a number of ways
including long term funding, trade finance, and technical assistance. As the
largest bank in Mongolia, Khan Bank finances corporate, small and medium
businesses, consumers, and agriculture.