REACH project, to facilitate access to credit for small and medium enterprises (SMEs) in ways that will lead to stronger and more sustainable businesses, have launched today. USAID in cooperation with Development Solutions NGO are implementing the project.
Project launch event was attended by the officials of Embassies from USA, Japan, Korea and European Union to Mongolia, resident representatives of the international organizations, the Ministry of Industry and Mongolian Credit Guarantee Fund experts.
The US Ambassador Extraordinary and Plenipotentiary to Mongolia Ms Jennifer Zimdahl Galt delivered opening speech. She stated that small and medium enterprises sector in Mongolia generates 20% of GDP. However, they do not have enough financial source. 75% of them want to receive loans and REACH project will supply this demand and support them.
The goal of the project is to improve and scale access to credit for SMEs which face obstacles to receive loans, by assisting SMEs find the appropriate financial products for their specific needs and helping them qualify for the loans.
The objectives of the project is to strengthen SMEs to qualify for loan requirements and facilitate 500 loans worth of 25 million USD.
Moreover, following core activities have planned;
Project team to cooperate with Credit Guarantee Fund and the Ministry of Industry. The Ministry of Industry noted that loans worth of MNT 241 billion was granted to 1500 SME projects during 2012-2016. As a result, many industries have established and total of 13 thousand workplaces have created. Currently, over 7000 people are working in SME sector.
REACH project to open its branch in Bayan-Ulgii, Dornod, Dundgobi and Selenge aimags.
If you need more information on the project, please contact at 7722 2210.
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