EBRD and Bank of Mongolia agree swap facility
The European Bank for Reconstruction and Development and the Bank of Mongolia have agreed to set up a long-term dollar-togrog swap facility to increase the availability of Mongolian togrog (MNT) financing to local businesses affected by the coronavirus pandemic.
The swap facility is a result of joint efforts by the EBRD and Bank of Mongolia to improve the competitiveness and resilience of Mongolian companies, with a strong focus on small and medium-sized enterprises.
The swap will enable the EBRD to secure reliable access to MNT liquidity and provide local currency loans both directly and through domestic financial intermediaries to companies in such sectors as agribusiness, building materials, light manufacturing and services. The funds will be used to support their liquidity, short-term working capital and trade finance needs, while limiting currency exchange related risks.
