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Private SectorProject Information Senior Loans to XacBank and TenGer Financial Group for Supporting Micro, Small, Medium-Sized Enterprises and Leasing Finance $ 4 Cr $ 40 Mn
06-May-2017
PID : 9387 Not Classified-Mongolia
Description The proposed unsecured senior loans to XacBank for up to $30 million and to TFG (for onlending to XacLeasing) for up to $10 million will support Mongolian MSMEs through subloans made by XacBank and through leases provided by XacLeasing.
Objectives and Scope  
Linkage to Country/Regional Strategy ADB conducted an evaluation of ADB assistance to the financial sector. Based on this analysis, and in view of looming challenges and opportunities, it put forward recommendations for future operations. These included (i) considering nonsovereign equity investments in and loans to Mongolian banks by ADB to strengthen operational capacity; (ii) supporting rural finance by using banks to channel credit to meet the gap in the supply of rural finance in the country; (iii) providing longer-term loans to meet and promote the needs of SMEs; and (iv) supporting the development of nonbank and capital market sectors.

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