U.S. Agency for International Development (USAID) Representative Chuck Howell, CEO of Xac Bank M. Bold,  and Deputy CEO of Khan Bank D. Batsaikhan recently signed an agreement  to support up to USD25 million in lending to small and medium enterprises (SMEs).  This USAID program under the US Development Credit Authority is the first such program in Mongolia and is aimed at helping save jobs and creating more employment.

The agreement will help mobilize and leverage financing to SMEs.  The primary beneficiaries 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.