EBRD issues loans with domestic currency


While the MNT exchange rate is weakening, the European Bank for Reconstruction and Development (EBRD) has made a popular decision to start a loan program based on domestic currency.
Analysts say the program will be important for attracting investment to Mongolia, increasing the amounts of loans issued, ensuring the sustainability of the nation’s financial system, developing the capital market, and supporting national currency.
The EBRD began with an investment in TESO Corporation. On March 23, President of the EBRD Suma Chakrabarti paid a one-day visit to Mongolia, becoming acquainted with TESO’s operations.
TESO Corporation took out loans from the EBRD for technical upgrades and to build a new factory to produce import-replacement products.
During his visit to TESO Corporation, Suma praised the development of their operations in a short time, and applauded TESO’s focus on improving its production, service, as well as financial management. He told journalists, “We want to help boost growth in Mongolia. We look forward to working with the government on steps to improve the investment climate and the diversification of the economy. We would like to see Mongolia once more leading the world in economic growth, just as it did a few years ago.”
Upgrades to the production of TESO’s Ice Mark line of products has commenced, and equipment from Romania is being installed. The company will start production with its new technology in 2015. A large project to build food storage facilities that meet food safety standards is now also underway for TESO’s seven factories.
Head of the Board of TESO O.Damjin said, “Our company successfully took out loans from the EBRD. This is a great example of Mongolian entrepreneurs being valued at the international level, and it is an honor for us. With the loans, our company is aiming to build a factory that can produce import-replacement products, and this is a big responsibility for us.”
During his visit to Mongolia, Chakrabarti also called on President of Mongolia Ts.Elbegdorj, discussing multilateral issues, and held a meeting with authorities of Mongol Bank.

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Posted by on Mar 26 2015. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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