The project development objective is to continue to support the Mongolian government and commercial banks’ efforts to develop the intermediate-term lending market for Mongolia’s private sector, especially Small and Medium-sized Enterprises (SMEs). This development objective is to be achieved through (i) increased longer-term funding for viable capital investment projects, (ii) strengthened institutional capacity in identified high priority areas of Participating Financial Intermediaries (PFIs), and (iii) improved enforcement of prudential regulation and supervision by the BOM.
PSDC II has three main components: Component 1, Line of Credit; Component 2, Technical Assistance Programs; and Component 3, Project Implementation Support.
Component 1 is to support the growth of Mongolia’s private sector by providing longer-term financing sources for their capital investment needs without distorting the local market.
Component 2 is to support Participating Financial Institutions and Bank Of Mongolia institutional capacity development through consultant services, system upgrading and staff training.
Component 3 supports the government’s efforts to better manage, monitor and evaluate project implementation.
