The Organization for Economic Co-operation and Development (OECD) is implementing a project "Enhancing Competitiveness in Central Asia". Within the framework of the project, the OECD team of researchers worked in Mongolia in 2018 to work on providing analysis and policy recommendations to improve and increase access to finance for MSMEs and to implement the recommendations effectively.
The Economic Policy and Competitiveness Research Center (EPCRC) has been working with the OECD since 2016 and had done a monitoring study for the recommendations provided by the OECD. On 26th of June, the OECD representatives had a discussion about ongoing work at the EPCRC office.
In addition, the Ministry of Foreign Affairs in Mongolia and the OECD jointly organized an event "Improving access to finance for MSMEs in Mongolia" on June 27th, 2019. Ms. Odonchimeg.I, Deputy Director of EPCRC, introduced a presentation on the topic “An Access to finance for MSMEs in Mongolia.
From 2009 to 2018, 776 projects were funded by the SME Development Fund with 238.5 billion MNT. During this time, 693 billion MNT was provided to 6,972 projects through a bank. Since 2016, the bank has stopped issuing any loan. The SME Development Fund granted a loan to 133 projects in 2016, 154 projects in 2017, and 212 projects in 2018. Hence, it is a good sign that the number of loans is increasing and the number of non-performing loans is decreasing. (Source: SME Development Fund)