MN-PRIV.SEC. DEVT CR

closed

The paramount challenge for the country, within a strategic context is to raise the poverty line percentage, through the creation of a framework for private sector growth, hence poor households would be targeted more effectively. Within a broader assistance program, the Private Sector Development Credit will support the development of private enterprise and financial sectors, and will complement technical assistance for commercial banks, also provided by other international agencies. The project components provide for a line of credit to support the Borrower's efforts in the promotion of private sector development. Secondly, technical assistance to strengthen the institutional capacity of the banking system will be provided to the Bank of Mongolia (BOM), the Ministry of Finance (MOF), and the Counterpart Working Group (CWG). Participating financial intermediaries will also benefit through technical assistance for capacity building. Direct benefits will derive from the creation of a market for medium and long-term loans for private sector enterprises, which will allow the transfer of financial resources for sound economic initiatives.