The International Finance Corporation (IFC), a member of the World Bank Group, has signed a Memorandum of Understanding with the Ministry of Justice and Home Affairs (MOJHA) of Mongolia to help reform the country’s bankruptcy framework. It further aims to improve access to finance and ensure financial stability in the country by strengthening the insolvency and debt collections system.

The reform is intended to enable the Mongolian credit industry to manage debtor insolvencies and collections in more effective, efficient and responsible ways. It will strengthen a critical piece of financial infrastructure, particularly for the financing of micro, small and medium enterprises (MSMEs). It will also complement other areas of reforms that are being undertaken by the government to drive economic growth.

Strengthening bankruptcy legislation and improving the debt resolution system is one of the key elements of the government’s plan to modernize Mongolia’s legal framework by 2020.

This project in Mongolia is being supported by a Korea Trust Fund in the World Bank Group.