IFC: Smaller Business Will Benefit from IFC’s Trade Finance Program in Mongolia

Under the agreement, TDB will be able to issue various trade finance instruments guaranteed by IFC up to the amount of $5 million for tenors up to 3 years, allowing the bank to be more active in financing its clients’ international trade activities. IFC is the private sector arm of the World Bank Group. Its $500 million Global Trade Finance Program promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the program, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
The signing of this agreement is an important part of TDB’s strategy to diversify and develop its financial services and banking products.
Richard Ranken, IFC’s director for East Asia said, “TDB’s participation in the Global Trade Finance Program will provide a boost to trade and investment in Mongolia. Through the program, IFC will support Mongolia’s small and medium enterprises, which rely on imports of machinery and equipment to grow their businesses.”