Mongolian banks sign TF agreements with ADB

Four Mongolian banks have signed key trade finance agreements with the Asian Development Bank (ADB).

The agreements, which come under ADB’s trade finance facilitation programme (TFFP), are the first deals of their kind made in the country.

Mongolia’s Golomt Bank, Khan Bank, the Trade and Development Bank of Mongolia and XacBank all signed up to receive TFFP aid.

The TFFP provides finance to trading companies, as well as connecting banks and firms in Mongolia with their counterparts in Asia in an effort to enhance shared knowledge and establish strong cross-border working relationships.

ADB’s country director for Mongolia, Adrian Ruthenberg, comments: “Greater access to trade finance will help Mongolia’s many resource companies sell their goods overseas and provide critical support for its developing manufacturing sector. Equally important are the links that the TFFP will foster between Mongolia and its neighbours.”

Philip Erquiaga, director general of ADB’s private sector operations department, adds: “Finance is critical to the expansion of international trade. If trade finance is easily accessible from local banks, companies can use trade to expand their businesses, which contributes to the growth in the economy as a whole.”