Ulaanbataar, Mongolia, November 23, 2015—
IFC, a member of the World Bank Group, is expanding its programs to increase Lending Based on Movable Assets by promoting the recently enacted Pledge Law to financial institutions and businesses. The new Law has strengthened Mongolia’s financial infrastructure and will facilitate greater access to loans.
The Pledge Law (Law on Movable Property Pledge), approved by the Parliament of Mongolia in July 2015, provides a transparent and consistent framework for lending based on movable assets, a pivotal step in developing a modern secured finance system.
In cooperation with the Ministry of Justice, Bank of Mongolia, and the Legislative Standing Committee of the Parliament, IFC hosted a conference on “Pledge Law and Movables Finance” on November 23 in Ulaanbaatar. More than 100 international and local participants discussed the key features of the new Pledge Law and how the new provisions will stimulate more movables finance in the country.
“Supporting financial sector reforms helps to attract and sustain both domestic and international investments that are critical for Mongolia’s long-term growth,” said Tuyen D. Nguyen, Resident Representative for IFC in Mongolia.
Looking ahead, the successful implementation of the Pledge Law and the subsequent efforts in collateral registry development, movable asset finance capacity building, and regulatory enhancements are expected to transform Mongolia’s lending industry. By working together with the key stakeholders, IFC is committed to help expand access to finance for SMEs, agri-business operators, domestic and international traders, etc. through
the promotion of movable assets such as accounts receivable, inventory and equipment as collateral.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.
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