ULAN BATOR, Dec. 18 (Xinhua) -- The Asian Development Bank (ADB) has issued financing to Mongolia's XacBank for 30 million U.S. dollars to support micro, small, and medium-sized enterprises (MSMEs) in the country.
"MSMEs are key drivers of employment in Mongolia, where there is also a need to diversify the economy away from natural resources," Pavit Ramachandran, ADB country director for Mongolia, said at a signing ceremony early this week.
Ramachandran said the ADB's long-term stable financial support for XacBank will help it to mitigate funding risks and focus on expanding the MSME business, which will boost job creation.
This was XacBank's second private-sector loan from the ADB.
According to official data, Mongolia's MSMEs generate half of the country's employment and account for 90 percent of registered businesses. However, access to credit, especially for female-owned enterprises, is constrained.
