- January 19, 2017
- Posted by: Marvin Garcia
International Investment Bank has signed a loan agreement with the Development Bank of Mongolia in the amount of EUR 20 million for seven years. The loan facility will be used to support the SME sector, in particular to contribute to the implementation of socially significant projects in Mongolia.
This is the seventh loan in the IIB’s current portfolio, which brings the total amount of the Bank’s financing of the Mongolian economy to EUR 68 million.
The extended loan reflects the IIB’s intentions to continue supporting the Mongolian financial sector and also goes perfectly in line with the “Year of Asia” in the Bank, announced at the beginning of 2015.
The International Investment Bank (IIB) is a multilateral development institution founded in 1970 based on the intergovernmental Agreement Establishing the International Investment Bank and its Charter. The current nine members of the Bank are Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. The IIB invests into projects benefitting the economies of its member states and fostering economic cooperation between them, and focuses in particular on the support for small and medium-sized enterprises. The Bank has undergone major modernisation since late 2012 and is rated Baa1 (outlook stable) by Moody’s and BBB- (outlook stable) by Fitch.
The Development Bank of Mongolia (DBM) was established in March 2011 under the resolution of the Mongolian Government. The Bank’s Office is in Ulaanbaatar. Its activities are primarily governed by the Law on the Development Bank. The DBM specialises in financing social development projects (construction of municipal roads, free motorways) and in granting subsidized mortgage credits. It also finances commercial projects.